Trading Data: Issues With Emerging Indexes and Exchanges

trading data

Crypto indexes and their data resource counterparts are proving to be problematic within the cryptoverse.  When I first entered into crypto several years ago, only a handful of resources and exchanges tracked data for cryptocurrency projects.  Today, dozens more are surfacing, making things very complicated for crypto projects. When wash trading is thrown in the mix, we’re presented with the perfect storm of data management.

It’s very easy for an investor to lose their way when scouring the web for project information.  Those of us with experience in the cryptoverse frequently visit Coinmarketcap to search for volume or data on a project. However, newcomers have far more options to source their data.  Even though Coinmarketcap is the industry index, others like Coingecko, Messari.io, and WorldCoinIndex present investors with additional options.  

Trading Data: Points of Failure

Unfortunately, this allows for several points of failure.  Since Coinmarketcap pulls their trading data from exchanges via an API, some (but not all) indexes pull their data from Coinmarketcap.  Nonetheless, several indexes pull trading data directly from exchanges via their own API as well. Get your API key here. This is where things get really complicated.  Instead of all indexes using their own API for exchanges, most are pulling data from other indexes. And they may not be tracking all of the exchanges trading a particular coin.  

Incidentally, this creates another problem.  Displaying accurate project information consistently across all indexes is imperative. Thus, whenever a new exchange lists a coin (involuntarily or voluntary), the project team must ensure that all indexes are aware and make the proper adjustments.  Ideally, indexes would claim full responsibility for adding new markets (and exchanges would notify indexes as well). As crypto evolves, the number of websites serving the industry will likely increase, making this an idea that will be harder to achieve.

What does this mean for XTRABYTES?

It means we have to do our best to ensure that all entities have our correct data.  That’s already very challenging, to say the least. Occasionally, the solution is a simple document submission. At other times, it requires being a little more resourceful and making contact with an exchange/index representative in a community discussion medium (like discord or telegram). 

This leads me to our tracking dilemma with Coinmarketcap.  On their page for XTRABYTES, they show us as having no volume. However, their market tab does display volume from CoinExchange.  The Coinmarketcap DATA Alliance has requested both CoinExchange and WAVES submit trading data. While obligated to do so, the failure of both entities to do so means that such data won’t show up in the primary volume listing for a project.

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