The information service market of cryptocurrencies, CoinMarketCap (CMC), stated this Friday, may 29 the use of a new classification system that includes a confidence index.
Following the information, the company expressed that the indicator covers more than 22,000 pairs of exchange like BTC/USD, or ETH/BTC, for example, and more than 5,500 cryptocurrencies. In addition, they are introducing a new indicator of confidence.
You asked for it, and we’re proud to deliver it! Check out our new ranking system and Confidence indicator for more than 22,000 market pairs, spanning more than 5,500 cryptocurrencies! https://t.co/FMwmdKLqYm
— CoinMarketCap (@CoinMarketCap) May 29, 2020
Classification of pairs of market and indicator of confidence in CoinMarketCap
The inflation volume has been a problem that CoinMarketCap (CMC) has addressed actively from 2018.
On this basis, the company said that the exchanges are turning to this mode, to provide more figures than I really have, to give the impression of legitimacy and a false sense of liquidity in the markets.
Currently, with the modifications of the algorithm to the new system of classification of pairs of market and introduction of the confidence indicator, CoinMarketCap is intended to achieve two main objectives:
Classify the pairs of market of all cryptocurrencies using a combination of volume, score, liquidity, and factor of web traffic.To highlight the level of confidence you have, as to the accuracy of the volume of the exchange.
In consequence, CoinMarketCap (CMC), also introduced a new system of classification metric in pairs for all cryptocurrencies.
This classification consists of three bands:
High > 75%Moderate 50% – 75%Low < 50%
In this regard, CoinMarketCap (CMC) said:
“The indicator, which is shown in three bands. Primarily, it is based on an algorithm of machine learning that takes all the data that CoinMarketCap has.”
Finally, the algorithm takes all these factors as inputs in a model of machine learning. It also classifies the pairs of market in function of the weights in dynamic attributed to each of these criteria.
How to use these new features?
Carylyne Chan, CEO of CoinMarketCap, it details very clearly the steps to follow:
Step 1: in coinmarketcap.com start by selecting or searching for the criptomoneda that you are interested in. Go to the details page respective: for example, Bitcoin, Ethereum, Tether, XRP, etc Step 2: right click on the tab “Market Pairs“. Immediately, you will see a table of classification of various pairs of market for that criptomoneda (for example, BTC/USD, BTC/EUR, ETH/BTC).Step 3: To customize the information for your specific needs, use the filters in the top right corner of the table of classification. Classification system cryptocurrencies. Source: CoinMarketCap
This new classification system will become the new default encoding for all pairs in the market. What will make the user experience easier and faster.