Coinmarketcap, a top source of crypto data and prices has unveiled that it aims to make its first-ever acquisition. The firm made this announcement via a press release on June 26.
Based in the US, the company wants to buy an electronic crypto trading fund titled “Hashtag Capital”. In the beginning, this firm was a crypto trading fund. It now creates algorithms that analyze all points of liquidity to obtain the real price of an asset.
According to the press release, this step seeks to improve Coinmarketcap’s crypto data offering. This news comes after the firm rolled out a project with several crypto exchanges in May this year. In so doing, they created the Data Accountability & Transparency Alliance (DATA). The main goal of this group is addressing concerns on crypto data reporting.
Finding the True Data on More Than 2,000 Coins
Once the deal is completed, Hashtag Capital’s team would join Coinmarketcap’s team. Together, the two firms would work on pricing algorithms of the over 2,000 coins listed on the platform. On top of this, they would create new data offerings on Coinmarketcap.
Brandon Chez, Coinmarketcap’s founder, and CEO noted,
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.
Yangbin “Wybe” Kwok, a former engineering executive at Zendesk is part of the Hashtag Capital team that will join Coinmarketcap. He is also the co-founder of Zopim, a live chat support product that Zendesk bought five years ago.
Per the press release, Hashtag Capital was working on a solution to provide the true price of the crypto markets. However, it did not unveil the financial details of this deal.
According to an earlier report by Bitwise, almost 95 percent of trading volumes on unregulated exchanges is fake. Per Bitwise, Coinmarketcap has a large amount of false data. As a result, the platform gives a false impression on the size of the crypto market.
Do you think Coinmarketcap’s acquisition of Hashtag Capital will help the platform offer more accurate data? Let us know in the comments section below.