The most popular crypto data provider CoinMarketCap made its first acquisition- Hashtag Capital– a startup which develops algorithms that examines ‘all points of available liquidity’ to accurately reflect asset prices.

Hashtag Capital already developed a set of algorithms for calculating the ‘true price’ of cryptos, and after the causation, the team behind it will merge with CoinMarketCap to help them perfect the algorithms to determine the prices of assets.

CEO of CoinMarketCap, Brandon Chez, said:

“We are excited to push the envelope on cryptocurrency pricing at CoinMarketCap, going beyond our traditional volume-weighted average prices to even more sophisticated price algorithms and analyses. The Hashtag Capital team will be able to add significantly to our data efforts, and drive the next phase of CoinMarketCap in providing data products to the market.”

Hashtag Capital first operated as an absolute returns crypto trading fund, after which it started its tenure in providing accurate market data.

CoinMarketCap has stated that they determine the prices of individual digital assets by using ‘volume-weighted average price’ (VWAP) which basically allocates a weight based on the volume of the exchange that supplies the price of the crypto. CoinMarketCap is now dedicated as using as many data sources to increase the accuracy of data prices.

According to the press release:

“It has always been in our philosophy to provide as much visibility and breadth in our coverage of the crypto market, instead of selecting some exchanges and ignoring other relevant points of liquidity. We believe that this view will continue to drive greater accuracy in the data, as inclusion of all sources of data will create an exhaustive view of global liquidity.”

CoinMarketCap created a Data Accountability and Transparency Alliance (DATA) in May which comprises of Binance, Huobi, Liquid, UpBit, Bittrex, OKEx, IDEX, HitBTC, OceanEX, Gate.io, KuCoin, Bitfinex.

The organization was formed in order to promote the transparency, liability, and disclosure of crypto projects. Also, CoinMarketCap requires all the exchanges which are listed on its platform to supply live order book data and live trading data.

The Chief Strategy Officer at CoinMarketCap, Carylyne Chan, made the following statement:

“We are really excited about the future progress at CoinMarketCap! With the new data efforts we will be launching, in addition to our DATA Alliance, we will be able to provide a truly comprehensive platform for our users and customers, and pave the way for continued industry-wide involvement in crypto data development.”

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source: https://coindoo.com/coinmarketcap-makes-first-acquisition-to-bring-more-accurate-data/

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