There appears to be growing dismay regarding the way CoinMarketCap works. Albeit this platform is already under fire for not reporting the correct circulating supply of multiple currencies, their “refusal” to remove known fake volume exchanges isn’t helping matters much. It seems that latter aspect has sparked a new debate on Reddit as of late.
COINMARKETCAP FACES MORE SCRUTINY
Over the past few months, there seems to be a growing sense of discontent where the Coinmarketcap platform is concerned. This website was primarily designed to track as many different cryptocurrencies, tokens, and assets alike. Moreover, it also keeps track of the circulating supply and total supply of all projects. Everything appeared to be wondering fine up until a few months ago.
Ever since that time, the number of CMC-related complaints has grown proportionally. Not only because multiple projects are not being tracked properly right now, but the team also delisted Korena exchanges a few months ago for no real reason. Although that latter aspect has been corrected ever since, it seems a new issue has arisen already. Building such a “track record” of ongoing problems is never a good sign, but users are eager to point out any wrongdoings.
The most recent “issue” involving Coinmarketcap involves how they are not removing exchanges which have been confirmed to fake trading volume. In this Reddit post, the discussion pertains to the Quant market. FATBTC is, according to most community members, a company faking its Quants trading volume. HotBit is also believed to be in the same boat. Both platforms are still listed on CMC with no asterisks or anything along those lines.
Reddit user Placeholder368 sums the sentiment up as follows:
“Coin Market Cap is one of the biggest problems with this market. Making up their own arbitrary rules, pushing some coins, hindering others. They answer to no one and can swing the whole market on a whim. I can’t wait until we have someone reputable like NASDAQ being the most popular aggregator. Just a little bit longer.”
While it is easy enough to reach out to Coinmarketcap, it appears the team is ignoring these requests or simply not doing anything about it. While some people may argue there are plenty of other “market cap” tracking websites out there, Coinmarketcap still remains the go-to solution for most people. Especially for new coins, getting listed on CMC is considered to be a milestone these days.
Unfortunately, it seems most of the alternative websites also have issues on their own. This is especially apparent when it comes to looking at the total and circulating supply for individual projects. It is uncanny how many companies can incorrectly report this information, despite the error being pointed out multiple times. It seems the “fear of deviating from CMC” is very real in this regard. Unfortunately, that doesn’t bode well for the cryptocurrency industry as a whole, as incorrectly representing information will hinder any future growth.