CoinMarketCap, one of the most trusted names in the crypto space for token prices, has made its first acquisition by acquiring Hashtag Capital. In the announcement, it said that the acquisition would allow the company to gain truer prices using new algorithms developed by Hashtag.
We're on the move!
"True price" calculation is complex when exchanges are decentralized 🌍. CoinMarketCap stands for accurate data reporting, and has acquired Hashtag Capital to account for all points of market liquidity: https://t.co/qZKdvVvJG9 #coinmarketcap #cryptonews
— CoinMarketCap (@CoinMarketCap) June 28, 2019
The move is in line with the Data Accountability & Transparency Alliance (DATA), announced earlier in May. In its official blog, CoinMarketCap stated that Hashtag Capital would help the company to “ further develop pricing algorithms and continually improve our data offerings.” Particularly, Hashtag’s products focused on liquidity will big a big asset for the development of DATA. Commenting on the acquisition CoinMarketCap CEO, Brandon Chez said,
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.
The company further stated that it was their philosophy to provide in-depth coverage of the crypto space, rather than relying solely on a few crypto exchanges, taking into account various other relevant points of liquidity. They believe that their core philosophy will help them enhance accuracy in data, because of its all-inclusive and exhaustive approach towards measuring global liquidity, it further added.
The biggest challenge, the company says, has been decentralization of exchanges, as a particular cryptocurrency might have multiple and similar trading pairs across the globe. This makes an accurate determination of the true price, taking into the global scale of operations, a humongous task. This is exactly where Hashtag Capital could be of immense value to CoinMarketCap.
Hashtag Capital determines its own “true price” of markets, with the goal to create accurate asset reflection for all assets, considering all liquidity points accessible. The robust algorithmic project attracted attention from CoinMarketCap, which decided to take the firm under its own wings by acquiring it.
As part of the acquisition deal, all the team members of the project will now be working under CoinMarketCap. The team includes Yangbin Kwok, former co-founder of Zopim and Principal Engineer at Zendesk Chat. Other important names include former Zendesk Chat Product Manager Jeremy Seow, and Spencer Yang, former head of Advertising Optimizations team at Twitter APAC.