The controversy surrounding Binance acquisition of CoinMarketCap continues to trend. The website which is the leading ranking platform made a host of changes to the current algorithm which really hit a few of the players hard. Binance is being accused of getting favoured by CoinMarketCap after it maintained its number 1 spot even after the new ranking system. The position these firms hold is extremely important for their reputation so they're not willing to let it go. Now, Binance CEO CZ has decided to let in a little secret.
He posted a tweet to clarify some air around their way of working. Binance CEO stated that while exchanges count 1 BTC trade as 2 (1 buy and 1 sell) Binance categorize it as just 1. In other words, this suggests that Binance while holding the number 1 spot, actually reports half of the trading volume as the rest.
Will share a little secret, and address this once and for all.
Why do we do this?
He cited two reasons as to why that has been the case. Firstly, according to him, this is just the natural way for the traditional exchanges. When CZ started his company in 2017, this method was adopted and to this day they've decided to stick to it. The second reason is rather peculiar as Binance CEO thinks they chose to this way to not appear as big as they actually are in the game and so they hide their volume.
Although Binance CEO coming out in public to address this evening indirectly might help, other exchanges would continue to fire shots at Binance. Binance acquired CoinMarketCap around two months ago and ever since then there have been questions marks raised that this might leads to centralization as Binance's influence in the crypto space continues to grow and grow. The continuous stay at the top spot would only add more fuel to the fire.
Articles You May Read.