Platform cryptocurrency data and research Messari made a rating of 10 kryptomere for «real trading volume», modernizing methods of drawing up of similar ratings.
Accuracy vs. false precision.
We’ve added 10 exchanges to our «real volume» metric, but applied a 50% haircut to reported Korean and Chinese exchange volumes.
I wrote about our thought process today. We’ll welcome feedback and adjust quarterly:https://t.co/jnzcaePfSD
— Ryan Selkis (@twobitidiot) May 21, 2020
The creation of a new rating from the Messari is an attempt to eliminate the fake trade data. It is also the desire of researchers to establish the truth after the historic Bitwise report that 95% of the declared volumes on the exchanges are fake.
The historical report Bitwise identified ten exchanges «with legitimate trading volume» is Binance, Bitfinex, Bitflyer, Bitstamp, Bittrex, Pro Coinbase, Gemini, itBit, Kraken, and Poloniex.
New methodology from Messari, focused on trading volume, brought in the top-10 of the exchange Huobi, OKEx, Liquid, Bithumb and UPBit.
The crypto currency exchange Binance also remains in this list, and it gives the company additional credibility. Recent rating CoinMarketCap, which relies on the web traffic exchange Binance came in first place.
CEO Messari Ryan Selkis said that the new rating was due to the fact that the market do there are players with legitimate and large volumes. This applies to Korean exchanges, as Bithumb, UpBit, CoinOne; Japanese Liquid; Chinese Huobi, OKEx (OKCoin), Gate.io.
A new approach Messari
Messari proposed a new approach, which assesses the legitimacy of the trading volume of exchanges and uses a number of third-party statistical data: the ratings of the exchanges; and evaluation of liquidity from CoinGecko, CoinMarketCap, CryptoCompare, CryptoWatch, Nomics; the volume of FTX; transaction data from Chainalysis; data from the leading traders etc.
According to the researchers, the company added Korean and Chinese stock exchanges have been «a 50 percent haircut to be closer to their true volumes».
The company believes that this method is better than analysis of web traffic on the exchanges, while the «real volume» was reduced by 90% compared to stated.
Ryan Selkis acknowledged that the approach might be «less accurate than the alternatives», although this methodology takes into account the volumes, they are going to review on a quarterly basis.