The world of cryptocurrencies has gone through a lot of controversies recently, with the latest one involving exchanges allegedly fudging trading volumes and possibly, manipulating them. To combat this, CoinMarketCap had launched the Data Accountability and Transparency Alliance [DATA], aimed at enhancing accountability and increasing reporting standards across the blockchain industry.
The alliance has managed to get a lot of major crypto players on board, including Binance and Bittrex. The latest addition is Bancor, the popular decentralized liquidity network. DATA’s official release stated,
“The DATA seeks to promote greater transparency, accountability, and disclosure from projects in the crypto space. This initiative is underpinned by our belief that the provision of additional data points would i) empower our users to make more informed decisions and ii) provide a means for projects to differentiate themselves through enhanced disclosures.”
The conglomerate further plans to identify gaps in the reporting sector of the cryptoverse and propose strategies and measures to enhance data accountability and transparency. DATA comprises of 22 organizations now, which apart from the aforementioned companies, also includes popular exchanges like OKEx, Huobi, Bitfinex and Bithumb.
Some exchanges like Huobi and OKEx, who are part of DATA, were also called out by a recent Bitwise report for skirting the line between fake and real trading volumes on their respective platforms. Speaking about OKEx, the Bitwise report said,
“While there may be a smattering of real bitcoin volume on OKEx, the charts are clear: the vast majority of bitcoin volume here is entirely fake.”
For the analysis, Bitwise had considered transactions from 28 April to 5 May, where an irregular volume spike was noticed. According to Bitwise, the data betrayed none of the natural rhythms of a cryptocurrency exchanges.
The report did not fail to address Huobi either, with the statement reading,
“We also recognize that Huobi might have taken action to clean up wash trading on their platform within that time frame, but that view is challenged by the fact that Huobi’s reported bitcoin trade volume did not meaningfully drop during that time.”