In its endeavor to improve its crypto data offering, CoinMarketCap is taking over a firm building technology that will purportedly provide a “true price” for cryptocurrencies.
In what would mark as the company’s first ever acquisition, CoinMarketCap announced in a press release on Wednesday, that it purchased Hashtag Capital, a startup developing algorithms that analyse “all points of available liquidity” in order to more accurately reflect an asset.
Originally, Hashtag has been an absolute returns crypto trading fund, with a focus on creating better quality markets data as part of its fund management. As per the release, CoinMarketCap got hooked on this project, the Hashtag team will be joining the company once the acquisition is complete.
CoinMarketCap recently launched a transparency initiative with a number of cryptocurrency exchanges on May 1. With the initiative, the firm formed a new group dubbed as the Data Accountability & Transparency Alliance (DATA) in order to tackle concerns over cryptocurrency data reporting.
The firm further mandates all exchanges listed on its platform to provide live trading and orderbook data, or else they will be removed from the platform’s adjusted volume calculations. The series of changed followed a Bitwise Asset Management report that claimed that 95 percent of all reported bitcoin trading volume is faked.
Brandon Chez, CEO, and founder of CoinMarketCap stated over this new collaboration:
“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.”
In other CoinMarketCap news, the data provider has also made changes to its executive team, promoting Carylyne Chan from global head of marketing to chief strategy officer, while Emily Hurd advances from head of business development to chief revenue officer.
Image source – CoinmarketCap Twitter
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