CoinMarketCap Makes Bold First Ever Acquisition That’s Set To Boost Their Data OfferingAuthor: Ali RazaLast Updated: 17 June 2020 CoinMarketCap seeks to improve its services by providing its clients with more accurate prices of digital assets on the crypto market.Players in the crypto industry have been making moves to provide their clients with better access to cryptocurrencies and the data around them. The endeavor to provide transparency and ease of trading in cryptocurrencies has been seen across the industry in the past few months. CoinMarketCap, through its acquisition of Hashtag, is one of the latest players to improve their services in the crypto industry.For its first-ever acquisition, CoinMarketCap announced that it is purchasing Hashtag Capital, a startup that focuses on the development of pricing algorithms for digital assets. The algorithms developed by Hashtag are designed to derive all “points of liquidity” for the 2,000 digital coins that are listed on CoinMarketCap. Hashtag Capital’s bid to create better market data is the primary reason why CoinMarketCap sought to acquire the startup.The acquisition of Hashtag Capital has come after cryptocurrency markets have been under scrutiny regarding the accuracy and reliability of the figures and statistics on their trading platforms. A report by Bitwise Asset Management laid claims that 95% of trading volumes of unregulated exchanges are likely to be fake. This is a cause for concern and CoinMarketCap’s deal with Hashtag Capital will go a long way in addressing this particular concern. Online crypto trading is in need of credibility and CoinMarketCap has made a positive move towards being a fully credible trading platform.The Functions Of Hashtag CapitalHashtag Capital will help CoinMarketCap provide better transparency in the crypto industry, an initiative that CoinMarketCap themselves had already set out on with some other crypto exchange markets. The initiative dubbed the Data Accountability and Transparency Alliance (DATA), was launched on May 1 2019 and the move by CoinMarketCap is a step towards achieving the accountability they seek. The cryptocurrncy exchanges that are a part of the DATA initiative can be expected to make similar changes to their trading practices to fulfill the mandate of the initiative.Hashtag will allow CoinMarketCap to shift from the traditional methods of volume-weighted pricing to more accurate and efficient pricing through the algorithms. The use of algorithms will push the boundaries of cryptocurrency pricing says Brandon Chez, CEO and founder of CoinMarketCap. He also added that Hashtag Capital would play a role in driving CoinMarketCap’s next phase in providing data products to the market.The Bottom LineCoinMarketCap’s first ever acquisition is one that will make a permanent mark going forward. The pricing algorithms developed by Hashtag Capital will improve the overall performance of CoinMarketCap and place them in a good position to launch their future data products. The trading of digital assets will be improved significantly and there will be more credibility given to the statistics provided by the platform. The acquisition of Hashtag Capital also brings the goals of the DATA initiative closer to being achieved at CoinMarketCapital.