Huobi & CoinMarketCap Tackle the Issue of Fake Trading Volumes in Crypto
By Working Together, Exchanges and Others Can Ensure Better Transparency, Accountability, and Disclosure in the Crypto Industry.
Huobi Global is pleased to confirm its role as a founding member of CoinMarketCap’s newly-formed Data Accountability and Transparency Alliance (DATA).
The alliance is dedicated to bringing together partners across the board to contribute to a deeper discussion on transparency in the cryptocurrency industry.
As a charter member, Huobi will take a leadership role in combating issues like wash trading and fake trading volumes by working to establish, review, and align industry standards, as well as to identify gaps in the industry and to develop strategies to improve data accountability and transparency. In addition, as a DATA member, Huobi will provide enhanced, live, and in-depth trading and orderbook data to CoinMarketCap, allowing them verify and repost it.
“The issue of fake trading volumes is a real one in the industry and people have a right to know that the numbers provided by exchanges are legitimate. We think there should be no exceptions and we see something like DATA as a natural next step as our industry grows in both maturity and mainstream acceptance,” said Livio Weng, CEO of Huobi Global.
Among other advantages, Huobi is known for its strong liquidity, so accurate trading volume numbers are of high importance to the company. In addition to volume, liquidity is also measured by market depth and spread. Huobi regularly monitors and compares its liquidity against those of the other leading global exchanges. According those reviews, Huobi consistently ranks as one of the top exchanges in terms of liquidity.
“When it comes to liquidity, or any other measure, the public should be able to easily verify and decide who is trustworthy and who is not. That’s why we think efforts like the DATA alliance are positive steps forward,” said Ross Zhang, Head of Marketing for Huobi Group.
In addition to sharing data for verification, Huobi representatives will facilitate in-depth discussions, suggestions, strategies, and planning with other DATA members at biannual industry roundtables on crypto data transparency and its impacts.
“Huobi prides itself as being on the forefront of data authenticity, accuracy and transparency,” added Weng. “We are happy to work with others to advance these values across the industry as a whole.”