Crypto bigwigs blame coinmarketcap.com for data glitches because due to this nonsense many investors lost a big amount. Let’s see what was this issue and why it happened and who should be blamed?
Some of the biggest names in the cryptocurrency world are blaming coinmarketcap.com for data glitches that have caused billions of dollars to be wiped off the value of digital currencies.
Coinmarketcap is one of the most popular sites for tracking cryptocurrency prices and is used by millions of people every day. However, the site has been accused of inaccurate data reporting, with some claiming that it has deliberately manipulated prices.
Crypto Bigwigs Blame Coinmarketcap.Com for Data Glitches
In a series of tweets, Ripple CEO Brad Garlinghouse said that Coinmarketcap’s decision to remove South Korean exchanges from its price calculations was “irresponsible” and had “caused billions of dollars in losses”.
He also accused the site of inflating XRP’s price by as much as 20%. Coinmarketcap has denied any wrongdoing, saying that the removal of South Korean exchanges was due to “extreme divergence in prices”.
The site has also said that it is working on improving its price data. Despite the accusations, coinmarketcap.com remains one of the most popular cryptocurrency sites.
In the wake of recent data glitches on major cryptocurrency tracking site CoinMarketCap.com, some industry bigwigs are pointing the finger of blame at the website.
On Wednesday, CoinMarketCap briefly removed South Korean exchanges from its price calculations, resulting in a drastic drop in overall market prices. The website later corrected the issue, but not before billions of dollars were wiped off the value of cryptocurrencies.
In a series of tweets on Thursday, Ethereum co-founder Vitalik Buterin accused CoinMarketCap of causing “panic” with its “irresponsible” decision to remove Korean exchanges from its price calculations.
Buterin isn’t the only one expressing concern over CoinMarketCap’s handling of the situation. In a blog post on Thursday, Blockfolio CEO Edward Moncada accused the website of “spreading FUD” (fear, uncertainty, and doubt) with its handling of the data glitch.
“In our opinion, this was an irresponsible move that caused undue panic in the market,” Moncada wrote. “By punishing Korean exchanges for following local law, CMC is effectively saying that Korean exchanges should list prices that do not reflect reality.”
Moncada went on to call on CoinMarketCap to be more transparent about how it calculates prices, and to allow users to weight prices according to their own preferences. For its part, CoinMarketCap has acknowledged the concerns raised by Buterin and Moncada, and says it is working on improving its data accuracy.
“We are aware of the concerns that have been raised and we are taking them very seriously,” the website said in a statement. “We are currently working on making a number of improvements to our price discovery process.”
CoinMarketCap has not yet responded to a request for comment from Fortune.
The data glitch on CoinMarketCap comes at a time when the cryptocurrency market is already facing increased scrutiny. On Wednesday, the U.S. Securities and Exchange Commission (SEC) announced that it had shut down an initial coin offering (ICO) for allegedly defrauding investors.
And on Thursday, Japanese regulators raided the offices of cryptocurrency exchange Coincheck, after the exchange lost $530 million worth of digital currency to hackers earlier this year.
As the cryptocurrency market continues to face challenges, it remains to be seen whether CoinMarketCap will be able to weather the storm.
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