Messari changes the way it evaluates exchanges

Messari changes the way it evaluates exchanges
Written by:
Ali Raza
May 22, 2020
  • Crypto data analysis firm, Messari, recently decided to change the way it ranks crypto exchanges.
  • It introduced 10 new platforms, ranked according to its 'real volume.'
  • Platform plan to use 10 3rd-party sources to establish which exchanges are really seeing the most traders.

The cryptocurrency research platform, Messari, recently decided to introduce changes to its exchange evaluations and list several new ones. As part of the methodology’s revamp, the data analysis platform added 10 new exchanges.

Which exchanges are popular and trustworthy?

The new approach has the goal of trying to rank crypto exchanges without having to include any wash trading. The move was inspired by the Bitwise report that claims that 95% of the volume is fake. This is not exactly new, and such claims have been going around the crypto world for years, now.

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In order to provide only legitimate volume, Messari identified 10 platforms that are honest about the amount of crypto that passes through them.

These include Binance, Bitflyer, Bittrex, Bitfinex, Bitstamp, Gemini, Coinbase Pro, Poloniex. itBit, and Kraken.

The addition of new methodology also gave a boost to several other exchanges, including Liquid, Huobi, Bithumb, OKEx, and UPBit. These platforms entered the list of top 10 largest exchanges by volume, while Binance still holds the top spot.

The ranking gives even more credibility to a recent move made by CoinMarketCap, which started ranking exchanges not according to volume, but by web traffic. The new ranking put Binance as the top platform, and since Binance acquired CoinMarketCap only a few weeks earlier, most assumed that the ranking is rigged to make Binance look good.

According to Ryan Selkis, the CEO of Messari, the revamp came because the real volume metric omitted some major players “with *some* overstated volume, but *enormous* legitimate trading volume at the same time. Giants like Bithumb, UpBit, and CoinOne in Korea, Liquid in Japan, and most importantly, Huobi, OKEx/OKCoin, and in China.”

Where is will Messari get its data from?

Messari will now rank these platforms according to a trading volume from 10 third-party statistics. This is the only way to establish the legitimacy of trading volumes, as the firm sees it.

It plans to use data providers such as CoinMarketCap, CoinGecko, CryptoCompare, FTX, CryptoWatch, Chainalysis, Nomics, and other data providers. Combining the results of their own assessment is believed to be the best way to find out the truth. Of course, the results will not be 100% precise, but at least the traders will know the real state of things when it comes to the top platforms