Obtaining accurate, factual and unbiased information on cryptocurrency projects, assets, and services is a crucial aspect to ensure this industry can grow. Following a key recent acquisition, the search for an independent source of data will become all the more important.
Data Aggregator Acquisition
Keeping tabs on the cryptocurrency industry requires utilizing data sources at one’s disposal. Over the years, numerous providers have come to market, all in an attempt to let the cryptocurrency grow and thrive. These efforts have not been in vain entirely, although most users – both within the crypto community and outside of it – all kept referring to the same source.
That source is none other than Coinmarketcap. Following a lot of effort put in by its developers and operators, it had become the go-to industry standard for cryptocurrency data. It holds a lot of valuable information, including coin supplies, market caps, and overall trading volume.
At the same time, Coinmarketcap doesn’t have the best of reputation either. In recent years, its information was often found lacking, primarily when it comes to currencies that aren’t Bitcoin or Ethereum. Primarily when it comes to coin supplies – either circulating, total, or maximum – there have been multiple incidents of wrongful reporting.
Moreover, one has to wonder how advertisers will influence such a leading data aggregator over time. Coinmarketcap has displayed banner advertisements for a while, yet they weren’t always kosher either. It was not just this company going down this route, but for an industry-leading source of information, one would expect something better.
In the end, Coinmarketcap was acquired by the Binance company. An odd development, as Binance is the world’s leading cryptocurrency exchange. Following this acquisition, any sense of neutrality has been questioned, and will remain questionable for some time to come. Now is the time to find alternative data aggregators, such as CoinGecko.
Independent Data by CoinGecko
Of the many companies providing very similar data to Coinmarketcap, the CoinGecko platform has always stood out. Not just because of them providing the right data – or amending any errors swiftly, rather than waiting days or weeks – but because it is more user-oriented. Widgets and other tools can be found on CMC as well, but the way CoinGecko presents them is more informative overall.
Ever since CMC was acquired, CoinGecko has seemingly become a user favorite. There is no reason not to use multiple sources of data to find the information one needs. These platforms are all designed to be used side-by-side instead of only relying on one source forever.
Internally, CoinGecko is confident that remaining independent is the only right path forward. Despite receiving a lot of attention from people with money burning in their pockets, the company isn’t interested in taking external funds. Once external money is brought in, the narrative will change sooner or later. Remaining neutral is important to the CoinGecko team, and it is commendable to see them take such a strong stance.
Unlike its competitors, CoinGecko is also expanding its data at regular intervals. The DeFi industry, for example, has become a key segment for the company in recent months. It is one of the fastest growing segments in all of cryptocurrency, thus its data needs to be provided to a wider audience.
Professionalizing the cryptocurrency industry remains an ongoing process. When exchanges acquire data aggregators that process is set back several steps. Luckily, there are others who will remain independent at all costs. It is thanks to services such as CoinGecko that cryptocurrency will continue to thrive for many years to come.