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Liquidity rated 0 points! Deribit mocks: Congratulations to those unheard-of unknown exchanges

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Liquidity rated 0 points! Deribit mocks: Congratulations to those unheard-of unknown exchanges

Deribit, the largest Bitcoin options exchange in the market, has been rated with a liquidity score of 0 by CoinMarketCap, losing to many unknown small exchanges, and it doesn't even make it into the top one hundred in the overall ranking. What are the reasons behind CoinMarketCap giving such an unflattering score?

Deribit Unhappy with CMC Ranking

Cryptocurrency derivatives exchange Deribit took to Twitter yesterday to express its dissatisfaction with data platform CoinMarketCap (CMC). In a tweet, Deribit mockingly announced:

"We are delighted to announce that @CoinMarketCap has rated Deribit exchange's liquidity as 0, ranking us at 179th place. We also take this opportunity to congratulate all the exchanges we have never heard of but are listed. Well done everyone!"

Deribit's discontent is not unfounded. As the largest Bitcoin options exchange in the market, being rated with a liquidity score of 0 and a ranking lower than unheard-of small exchanges is surprising. However, apart from Deribit, other derivative exchanges like BitMEX and Bybit are also ranked poorly.

Source: CoinMarketCap

Lack of Rating Standards for Derivative Platforms

This situation may largely stem from issues in CoinMarketCap's rating parameters for derivative exchanges. Historically, CoinMarketCap's exchange rankings have compared spot exchanges with derivative exchanges. However, these two types of exchanges belong to different trading markets, and no scoring method can be equally applicable to platforms based on two different markets. Comments below Deribit's tweet from CoinMarketCap confirm this:

"The latest ranking algorithm only applies to spot market trading pairs and exchanges. There will soon be a separate page available for derivative product exchanges."

While CoinMarketCap did not intentionally downgrade Deribit's rating, as the oldest data platform, it has yet to establish a section for derivative exchanges and formulate a more suitable rating model. Moreover, with its acquisition by cryptocurrency exchange Binance this year, its platform credibility continues to diminish in the market.

Rise of Competitors

On the other hand, CoinMarketCap's competitor CoinGecko seized the opportunity to promote its platform in the comments under Deribit's post:

"Hi Deribit, we invite you to check out our cryptocurrency derivatives exchange rating parameters... We consider open interest, funding rates, basis, etc. We will continuously improve on this, please feel free to share your feedback with us."

CoinGecko has long been positioning itself in the derivatives industry and has set up an independent section to establish rating standards for derivative trading platforms, with increasing website traffic. If CoinMarketCap fails to keep up with market trends and rebuild its credibility, it may struggle to retain its leading position as a data platform.