Cryptocurrency exchange Coinbase will begin tracking and debunking false information about digital assets to increase public trust in the industry.

Coinbase, one of the largest cryptocurrency exchanges, has decided to declare war on disinformation. Now, in the new Fact Check section, the company’s analysts will identify fake reports and refute them. In this way, the exchange plans to increase the confidence of the public and potential investors in cryptocurrencies and avoid panic in the market, which is often supported by unverified reports in the media.

“Interest in our business and cryptocurrencies from the media, governments and community is growing along with Coinbase and the crypto economy as a whole. Unfortunately, we often see inaccurate information appear in traditional media or social networks,” wrote Coinbase CEO Brian Armstrong.

The first revelation from Coinbase was the long-standing myth that Bitcoin mining is not environmentally friendly. As experts explain, miners mainly consume excess power from power plants.

“Half of the world’s production comes from China’s Sichuan province, where abundant hydroelectricity allows 95% of the energy needed to come from renewable sources. About 75% of miners already use renewable energy. In addition, researchers at the University of Cambridge concluded that Bitcoin currently does not have a significant impact on the environment,” the material says.

The Coinbase initiative confirms that information can greatly influence the movement of the cryptocurrency market and the formation of the price of crypto assets.

“Any information in the modern world can affect the value of a particular cryptocurrency. Everyone knows how verbal interventions work in foreign exchange markets. Only here, unlike the classic foreign exchange market, such statements are made not by representatives of governments and central banks, but by public figures who enjoy a certain authority in cryptocurrency circles (the so-called ‘opinion leaders’). In this regard, we try to critically evaluate the information we receive and make only tactical decisions based on the analysis of aggregate data,” commented Alexander Fedorov, director of Cryptotrade LLC.

The world of cryptocurrencies is full of rumors. Hints of problems in the development team can bring down the price of the coin, rumors of hacking or problems with withdrawals can lead to the collapse of the crypto exchange. The crypto market is still very vulnerable to information dumps. FOMO and FUD rule here – fear of missing out, uncertainty and doubt.