Critics of the Coinmarketcap.com(CMC) system have long decried the market manipulation used to game the rankings. In an effort to filter out this problem, Coinmarketbook.cc(CMB)has been created in an effort to measure real buying support for various cryptocurrencies. Rather than using “market cap” based on misleading circulation numbers and a latest fill-price often arrived at through suspicious volume, Coinmarketbook instead uses “buy support” for its rankings. “Buy Support” is defined as: The sum of buy orders at 10% distance from highest bid price. This is an attempt to mitigate spoofing.
Cinmarketcap Ranking = Market cap
Coinmarketbook Ranking = Buy support/Market cap.
We compared the two rankings in order to find any large bias that the more popular CMC might be spreading in the market. We simply took the CMB ranking and subtracted the CMC ranking for each crypto. CMB Rank – CMC Rank
“Positive” values are ranked higher on CMB than on CMC, an indication of having good liquidity. Conversely, more negative values may be an indication of being overvalued or maybe even outright manipulated.
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