CoinMarketCap takes its first steps in its efforts to improve its crypto data offering through the acquiring of its first company, Hashtag Capital.
A press release on their website outlined CoinMarketCap’s purchase of Hashtag Capital which has developed a set of algorithms that will help set the “true price” for the cryptocurrency market. The move follows the company’s initiative to evolve its approach to accurate cryptocurrency pricing. On the 1st of May this year, the company launched its new transparency initiative dubbed, the Data Accountability & Transparency Alliance (DATA). This saw the company form a new group, tasked with discussing ways to tackle concerns over cryptocurrency data reporting.
“We are excited to push the envelope on cryptocurrency pricing at CoinMarketCap, going beyond our traditional volume-weighted average prices to even more sophisticated price algorithms and analyses,” said Brandon Chez, CEO & Founder of CoinMarketCap. “The Hashtag Capital team will be able to add significantly to our data efforts and drive the next phase of CoinMarketCap in providing data products to the market.”
The announcement mentions that the Hashtag Capital team, will join up with CoinMarketCap to further develop pricing algorithms and continually develop their data offerings. What originally attracted the CoinMarketCap’s team to Hashtag, was their work on ways to create better quality market data as part of its fund management, something Hashtag Capital was pioneering.
Following their recent DATA initiative, CoinMarketCap informed all exchanges that are listed on their platform that they must now provide live trading and order book data or else risk being removed from the platform’s adjusted volume calculations. Bitwise Asset Management who provide cryptocurrency index funds has previously claimedv that 95% of all reported bitcoin traded volume is faked and the true spot market for bitcoin is held on only 10 exchanges. A claim which further solidified CoinMarketCap’s efforts to provide a true market price.
Sources: the-blockchain.com, blog.coinmarketcap.com, coindesk.com