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After being acquired by Binance, CMC’s exchange ranking metrics changed, sparking industry controversy.
Summary
Topic: Players become referees, and the ranking of CMC Exchange provokes controversy. On May 15, CoinMarketCap (CMC), the world's most authoritative data aggregation website for encrypted tokens, announced the latest exchange rankings. The ranking has changed a lot this time. OKEx and Huobi, which were previously well-known to users, both fell out of the top three, ranking sixth and eighteenth respectively, while Binance rose to the first place. After being acquired by Binance, CMC’s exchange ranking metrics changed, sparking industry controversy. Both Huobi and OKEx said that CMC uses web-side parameters to make rankings, and its data base has great limitations. After the release of the CMC exchange rankings, the global visitor rankings of the Binance website climbed rapidly.
Quotes: The market pulls back, and the BTC exchange balance hits a new low. The total market value of digital tokens this week was US$261.66 billion, a decrease of US$13.52 billion or about 4.9% compared to last week; the average daily turnover rate was 63.9%, an increase of 2.5% from last week. The current price of BTC is 9328.2 US dollars, with a weekly decline of 5.2%, and the average daily trading volume is 51.3 billion US dollars. The current price of ETH is 195.62 US dollars, with a weekly decline of 8.2%, and the average daily trading volume is 19.1 billion US dollars. The BTC balance on the exchange this week was 533,000, a decrease of 22,747 from last week. The balance of ETH on the exchange was 14.822 million, a decrease of 19,598 from last week. Among the BICS secondary industries, the proportion of the leisure and entertainment industry has increased significantly.
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Risk warning: regulatory policy risk, market trend risk
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1. Players become referees, and the ranking of CMC Exchange sparks controversy
On May 15, CMC, the world's most authoritative data aggregation website for encrypted tokens, announced the latest exchange rankings. The ranking has changed a lot this time. OKEx and Huobi, which were previously well-known to users, both fell out of the top three, ranking sixth and eighteenth respectively, while Binance rose to the first place.
After being acquired by Binance, CMC’s exchange ranking metrics changed, sparking industry controversy.
1.1 Referee CMC
CMC was founded by Brandon Chez in 2013. Currently, the platform displays the price, quantity, and other indicator data of about 5,474 encrypted tokens and information on more than 500 encrypted exchanges. It is the most concerned website for retail investors in the encrypted token industry. In the industry, CMC has always been regarded as the most trustworthy and fair encrypted token price data website.
Think of the exchange ranking as a competition, the major exchanges are athletes, and CMC is more like a referee. CMC will rank exchanges and project parties based on website traffic, transaction volume, market value and various data. CMC's professionalism has always made it a rising reputation in the industry.
On April 2, 2020, Binance officially acquired CMC for USD 300 million. Although Binance founder Zhao Changpeng stated that CMC is still an independent operation, Binance will not interfere. However, there are constant disputes in the industry. Binance, as the world's leading digital token trading platform, has joined the world's most influential ranking website. The independence of CMC data has been questioned.
On May 15, CMC announced the latest exchange rankings, with Binance rising to the first place, while its main competitors Huobi, OKEx and other exchanges have fallen sharply. In this regard, CMC said: The new ranking is no longer based on the traditional transaction volume, but anchors the "popularity indicator" - website traffic factor. The website traffic factor integrates various parameters, such as page views, number of unique visitors, bounce rate, on-site dwell time, relative ranking, keyword search, etc.
Differences in mobile Internet ecology and investor trading habits at home and abroad lead to huge differences in website traffic of exchanges, which may be the main reason for affecting this ranking. Under this indicator, overseas exchanges rank relatively high, with CoinBase Pro and BitMEX ranking second and third respectively. However, some exchanges that domestic users are familiar with, such as KuCoin, Gate, ZB, Matcha, etc., are gradually ranking lower.
However, the industry is lamenting about this, and it is generally believed that CMC measures exchanges based on website traffic, which is extremely unobjective. Because website traffic not only cannot reflect mobile traffic, which accounts for the main proportion, but also cannot reflect the overall traffic of a platform using multiple domain names.
1.2 Responses from Huobi and OKEx
OKEx stated that the CMC ranking does not have much reference value and cannot reflect the real size of an exchange. The new ranking rules are based on the traffic data of the website, but in the current market, many users access directly through the app instead of browsing through the webpage, and the data basis has great limitations.
Xu Kun, Chief Strategy Officer of OKEx, expressed his views on the ranking dimensions of trading platforms. He believes that security is the first, followed by disk liquidity and transaction scale, and product experience and services. "In the era of mobile Internet in 2020, using web-side parameters to make rankings is either ignorant or shameless. Fairness and justice are the foundation of all rankings. CMC is dead..."
Huobi said that the most effective measure of the overall strength of an exchange is the total number of assets on the chain, followed by liquidity data and platform token repurchase. With the current popularization of the mobile Internet, most users have already used APP to access the trading platform, especially in East Asia where smart phones are highly popular, and the APP/Web ratio has far exceeded 100%. CMC uses webpage traffic to measure the overall strength of the exchange, which is out of touch with the times, and the cost of webpage traffic is also very low.
1.3 The secret behind the ranking
CoinMarketCap is the world's most authoritative encryption data aggregation website. According to SimilarWeb data, CMC has over 200 million visits in the past 6 months, and it is the undisputed concentration of encryption data. Therefore, it is very important for a crypto exchange to rank well on the CoinMarketCap website.
High rankings increase exchange brand awareness, which in turn attracts more new clients. New customers will not only bring transaction fee income, but also increase the transaction volume of the exchange, make the exchange higher in the ranking, and attract more customers again, forming a virtuous circle.
In just one month, Binance’s global visitor ranking has increased by nearly 700 places, and the “deal” of the acquisition of CoinMarketCap seems to be working well.
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2. Market: market callback, BTC exchange balance hits new low
2.1 Overall market: market callback
This week, the ChaiNext Digital Asset 100 Index closed at 811.28 points, down 5.7%. The ChaiNext Digital Asset 100X Index closed at 1939.75 points, down 7.7%.
The total market value of digital tokens this week was US$261.66 billion, a decrease of US$13.52 billion or about 4.9% compared to last week.
The average daily turnover of the digital token market was US$163.66 billion, an increase of 1.2% from last week, and the average daily turnover rate was 63.9%, an increase of 2.5% from last week.
The BTC balance on the exchange this week was 533,000, a decrease of 22,747 from last week. The balance of ETH on the exchange was 14.822 million, a decrease of 19,598 from last week.
The market value of USDT is 8.83 billion US dollars, an increase of 2.45 billion US dollars from last week, and the premium rate of USDT relative to the US dollar has increased.
2.2 Core Tokens: Market callback, mainstream tokens down slightly
The current price of BTC is 9328.2 US dollars, with a weekly decrease of 5.2% and a monthly increase of 40.4%. The average daily turnover is 51.3 billion US dollars, and the average daily turnover rate is 30.6%.
The current price of ETH is $195.62, with a weekly decrease of 8.2% and a monthly increase of 27.6%. The average daily turnover is US$19.1 billion, and the average daily turnover rate is 88.2%.
The current price of EOS is $2.59, with a weekly decrease of 6.2% and a monthly increase of 7.9%. The average daily turnover is 3.76 billion US dollars, and the average daily turnover rate is 160.8%.
The current price of BCH is 235.51 US dollars, with a weekly decline of 9.9% and a monthly decline of 9.3%. The average daily turnover is 3.91 billion US dollars, and the average daily turnover rate is 88.2%.
This week, the monthly volatility of the main tokens was the same as that of Hangzhou, and the price fluctuations decreased.
2.3 BICS industry: the proportion of leisure and entertainment industry has increased significantly
The BICS secondary industries with a more obvious increase in the number of tokens this week are non-bank financial and physical assets, and the more obvious declines are healthcare, data & storage.
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
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3. Output and popularity: BTC and ETH computing power decline
This week, according to Google Trends, the search popularity of the term Bitcoin is 23, and that of Ethereum is 14.
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4. Industry news: BTC searches hit a record high
4.1 The total number of BTC ATM installations in the world reaches 7856
CoinATMRadar statistics show that since May 1, a total of 161 BCT ATMs have been newly installed around the world. As of May 17, the number of BTC ATMs deployed globally has reached 7,856.
4.2 CME’s BTC futures open interest hits new high
According to Cointelegraph, the information provided by CME representatives revealed that on May 14, there were 10,792 open positions of BTC futures contracts on CME, totaling 53,960 BTC, a record high for the product.
Note:
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
