CryptoCompare a digital asset data provider has launched a crypto exchange benchmark to rank exchanges.
Close to 100 active global spot exchanges will be ranked. With the ranking system in place it will give insights to investors and traders on the best reliable information on trading venues.
The product is said to come at the right time as major exchanges are viewed as market manipulators through was trading.
The announcement to the above read:
“The CryptoCompare Exchange Benchmark shows the problem has been getting worse with lower quality exchanges [ranked C-F1] increasing market share by 30% in the last 12 months, demonstrating the need for a ranking methodology that does not rely on aggregate volumes.”
CryptoCompare has considered quantitative and qualitative factors, users correlation-of-volume-to-volatility and standard-deviation-of-volume as the inputs considered for more than 30 metrics.
In the words of Charles Hayter, CEO & Co-founder, CryptoCompare said:
“In response to industry concerns over inflated volumes and the lack of reliable metrics for assessing cryptocurrency exchanges, we are excited to launch the CryptoCompare Exchange Benchmark. We look forward to bringing greater transparency to the digital asset class and improving decision-making for market participants by providing a dataset they can trust.”
For the month of May the top 3 exchanges are Coinbase, Poloniex and Bitstamp and the list followed by bitFlyr, Liquid, itBit, Binance and more the list had already been put out.
Geography, legal and regulatory needs, trade surveillance, team reputation,investment, and market equity are a ranking components included.