Top 5 Alternatives to CoinMarketCap
With an increasing number of crypto newbies coming in every day, it is only logical that the information intake of cryptocurrency users increases along with it. There is a variety of information providing sites available, some are blogs, some are daily information providers, price predictors and so on. They are needed for the community to get an expanded picture of the whole sector and make informed decisions based on their findings.
One forum, since the start of the crypto era, has always been on the top of any list of resources. Ever since its inception in 2013, CoinMarketCap has been the largest provider of crypto information in the Industry. It has been a pioneer in the space, to say the least, and is known for providing various types of resources which are meticulously classified. They help the users by giving real-time and historical data related to the price, market value and volume of almost all cryptocurrencies.
Allegations and Drawbacks
BitWise Fake Volume Report
BitWise, an Asset Management Firm, actively involved in cryptocurrency research, started the day with a controversial announcement. BitWise, in a report spanning 226 slides, made a complaint registered with the Securities and Exchange Commission (SEC) about the possible portrayal of misinformation and misuse of user trust. They claimed that CoinMarketCap concocted information about daily cryptocurrency volume, overstating it by many times to show that certain cryptocurrencies are seeing unprecedented interest.
“Despite its widespread use, the CoinMarketCap.com data is wrong. It includes a large amount of fake and/or non-economic trading volume, thereby giving a fundamentally mistaken impression of the true size and nature of the bitcoin market”, says the BitWise report, which also lays out in detail how it reached that conclusion.
The CoinMarketCap team responded almost immediately after receiving the complaints from BitWise and many other users, and the team is looking into it thoroughly. It can only be speculated what was done internally, but one thing was clear to the users: never put all your eggs in one basket. Many of us have blindly used CMC for all our daily crypto information, and now we know that has to change.
DAPS vs. CMC
CoinMarketCap recently decided to upgrade their algorithm, as part of updating the platform. For some reason, it affected the ranking of the top 200 crypto coins. DAPS, a cryptocurrency for anonymous payments, took the biggest fall. Overnight, the DAPS coin went down by almost 1000 points, from 176, 1173. No statement was provided justifying the reduction, which made the DAPS team incredibly furious. This happened due to an algorithm by CMC that ranks the top 200 coin differently than the rest.
The CEO of the DAPS project was later contacted by Forbes to comment on what they think had happened and they made several infuriating comments related to CMC. Adel De Meyer, stated “In my opinion, the requirements are vague and open to interpretation. There is no definitive method by which one can state that if the requirements are fulfilled, you will be ranked appropriately. Their direct competitor CoinGecko has its methodology published publicly, so it gives projects a fair and equal chance to rank better for their project’s visibility and credibility”, showing their support for CoinGecko against CoinMarketCap. Full interview can be found here.
When asked for an opinion, CMC commented that one of the ranking factors is “significant liquidity/trading activity with normal bid-ask spreads across sufficient sources of market data.” As a result, all coin developers and issuers are motivated to wash trade to comply with this requirement. If the volume falls for some reason, it is the team’s task to meet the “necessary” requirements.
Widening the Basket
As with stocks, cryptocurrencies or any form of asset, diversity is important, especially one’s information input forums. One just may not rely on a single entity, especially to obtain correct information. For this reason, we will now discuss the best alternatives we found for CMC. All the sites were thoroughly researched to identify and analyze everything a crypto enthusiast would look for, plus other features that might be helpful in everyday perception.
Formed in 2014, CoinGecko is a brainchild of two developers who wanted to help people get a deeper understanding of the crypto space at any given time. In an interview with the founders, they claimed that they got the idea of building CoinGecko when they started thinking about their philosophy of researching. They wanted a forum where they can analyze all types of data, such as usage, development, and even the interest of the coin in sites such as Twitter, Reddit, etc. CoinGecko is the first platform in the game to move ahead of MarketCap alone. They also look at social media interest, developer teams, liquidity and so on, and combine them into an algorithm to convey the best and most transparent information available. As explained on their Methodology page, they take 11 different metrics to accurately portray crypto ranking.
CoinGecko breaks down quantitative and qualitative data for several different metrics. The metrics used include items such as Twitter followers, Reddit subscribers, coin community, the cost of a 51% attack, the number of developers working on the coin and much more to provide an overall score of the coin and a rating for each category.
CoinGecko is arguably the most trusted exchange out there, with enough information availability for any seeker to get a clear knowledge of what they’d like to understand.
Gaining popularity after the CMC scandal, LiveCoinWatch has an impressive community. Portraying itself as a transparent and reliable crypto information site, LiveCoinWatch’s standout feature is the “Trusted Exchange Volume” which, according to the official statement, is a true and fair representation of the actual daily exchange volume, reliable and unhindered by outside influence.
At the time of inception, LiveCoinWatch took an initial set of 10 exchanges which it deemed to be trustable and reliant. It then followed the guidelines set by the BitWise Report to eliminate the inflation caused by wash-trading and finally provides the actual volume. The list is community-driven and keeps adding exchanges by the nomination of the community.
Other features include outlining exchanges that portray low volume and uncanny price difference, a decentralized community-driven forum and minimalist UI for greater perception of information.
Known within the community as the true successor to CoinMarketCap, CoinPaprika is a crypto resources site focused towards the above-average investor. All of its features and resources provide a clearcut, technical and true picture of the crypto space. It has been continuously used by loads of traders and reviewers for understanding the bigger picture.
CoinPaprika was launched both as a mobile and desktop platform, to allow users to gain information on all devices wherever there were. Later, Coinpaprika allows great flexibility and includes features such as price details, coin information with resources and video explanations, social media influence, upcoming events and much more.
One of the most user-friendly decentralized forums out there, CoinCodex combines simple, up-to-date cryptocurrency information with a modern, intuitive layout that includes mobile design, clean interactive graphics, and a smooth dashboard. The CoinCodex interface uses an intuitive, interactive approach that allows you to seamlessly monitor your cryptocurrency investments and favourite coins. The site features a huge library of useful staring guides, which teach users about the basics of the crypto world and give them a head start from the rest.
The features that sets CoinCodex apart is the ICO, STO and IEO tracking list. The list allows users to be up-to-date with the upcoming token offering from all sectors, providing information about the offerings and so on. It is seen as the industry standard.
Other eye-catching features include platform reviews ranging from exchanges to casinos to crypto card providers, market overview, Dapp information across all blockchain platforms, crypto news and portfolio tracking. CoinCodex has quickly gone on to be the trusted name in all information other than metrics. Users regularly visit the site for its news and reviews and stay up to date with the token listings.
CoinLib is a new entrant in this club, but with a promise to revolutionize the game. A user-friendly resource platform provides real-time as well as historical cryptocurrency price and volume data, charts and crypto coin rankings with a portfolio tracking tool and an integrated price alerting mechanism. It has amassed nearly 1.8 million users within the first few months of its entrance and is slowly building a repo in the community.
It also shows intuitive total market cap charts with Bitcoin dominance charts in 8 fiat currencies. Using CoinLib, you can also compare up to 4 different coins on the criteria of their specifications, trading volume, price performances, and market caps. Also, you can enjoy their free version of portfolio manager once you register on CoinLib by using your details. CoinLib also includes an Advanced and a pro version, each with its privileges and added advantages. This move was made to target the sophisticated investor who did not mind shilling a little to enjoy an edge over the others.