CZ Clarifies How Binance Reports Its Trading Volume
In Brief
- Binance only reports half the trading volume compared to other cryptocurrency exchanges.
- Binance has kept this policy since its beginning.
Binance, one of the largest cryptocurrency exchanges, is known in the crypto community for facilitating massive volumes of cryptocurrency daily.
In a recent Tweet, Binance CEO, Changpeng Zhao (CZ) clarified how Binance reports its trading volume.
According to CZ, Binance only reports half of the trading volume typically reported by other cryptocurrency exchanges. Binance also reports a trade once and not twice. At the time of press, Binance still ranks #1 by trading volume on CoinMarketCap.
Furthermore, CZ also clarified that Binance has been doing this since its beginning and it is not a new policy.
CoinMarketCap Pushes Exchanging Ranking Algorithm Update
CoinMarketCap, one of the largest cryptocurrency reporting websites, has found to be largely inaccurate in reporting trading volume. As a result, CMC has been working towards improving reporting accuracy. The latest algorithm update utilizes spot market pair data as well as a “Confidence score”.
Following the algorithm change, Binance continues to claim the top spot on CMC’s exchange ranking. According to CMC, Binance has facilitated over $3.5 billion in cryptocurrency volume over the last 24-hours. Huobi Global currently ranks second with Coinbase Pro ranking third.
Binance recently acquired CoinMarketCap but has no effect or influence on CoinMarketCap’s ratings, according to CoinMarketCap.
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