Crypto Firms Form A Coalition To Promote Market Integrity
Blockchains and cryptocurrencies are brand new technologies that have changed the world over the past few years. Some have been able to strike it rich while others can earn extra money by trading crypto as a sideline.
Despite their potential for good, cryptocurrencies have a history of scams and people taking advantage of the market leaving a stain on their reputation. Many firms and blockchains are trying to minimize these issues which seem almost impossible to address.
Crypto Firms Band Together to Ensure Integrity in the Marketplace
With these potential issues affecting the reputation of cryptocurrencies, several cryptocurrency firms and exchanges have decided to do something about it. They have formed a coalition to fight market manipulation and similar problems.
Just recently, Solidus Labs along with other notable groups like Coinbase, Bitmex, Bistamp, and many more have made an announcement. They stated that they will be launching the “CMIC” or “Crypto Market Integrity Coalition”.
They have asked other companies involved with cryptocurrency to follow their lead for the sake of integrity. Members of this coalition have pledged to ensure fair exchanges in the digital marketplace and that they must fight market manipulation and abuse.
CMIC was founded by 17 founding members including advocacy groups like the Chamber of Digital Commerce in the US, and CryptoUK. Additionally, CryptoCompare and Circle have joined the CMIC coalition as well.
With the coalition’s pledge to maintain fairness in the digital marketplace, the group has planned to share its very own research regarding cryptocurrency to help improve marketplace deals. They seek to establish an open discussion with regulators with the hope of improving data-sharing and their surveillance framework.
Dante Disparte, the CTO of Circle states that harmonizing the global approach of digital assets will improve the competitiveness and security of these technologies leading to lower costs in general. In doing so the coalition will help advance the integrity and standards of the digital marketplace.
The CMIC website members pledge states that:
As responsible, innovative participants in digital asset markets, we seek to promote
the integrity and efficient functioning of these markets.
We support and seek to participate in digital asset markets that demonstrate
Market Integrity. We will integrate principles that uphold Market Integrity and
Market Efficiency into our operations and business strategy.
We agree that, regardless of regulatory requirements, market activity should be
reviewed and monitored on a reasonable ongoing basis for purposes of detecting
and eliminating Market Manipulation and unfair market abuses. Clear instances of
fraud and manipulation are illegal, and we will commit to preventing these
activities to the best of our ability.
Digital assets and digital asset market structure may present novel forms of
market activity and market manipulation. We agree to continually educate
ourselves as to these unique challenges and how to address them.
Creating a more fair digital marketplace and improving the standards of its integrity is a good first step to improving the reputation of cryptocurrencies. But aside from the reputation, it will also help make it a better place in general where people can earn money without the fear of scams and potential manipulation of the market.
* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.