The coin tracking giant which is one of the most popular places for tracking coin prices recently experienced incorrect prices, with some being rather inflated several hundred percent.
Notably, CoinMarketCap had just released a new, professional API that is rather highly priced.
Additionally, the site recently updated its exchange ranking page. Not too long after the new API was released, this pricing issue occured, affecting many people.
Bitcoin’s price reportedly spiked upwards of 10 percent on CoinMarketCap whilst, as stated above, many other coins jumped percentages in the high hundreds, with some reaching almost 1000 percent – MOAC and Aeternity.
CoinMarketCap stated, in a tweet, that “there was a price calculation error on Tether which caused any listing with a Tether market to become artificially inflated”.
We apologize for the glitch earlier. There was a price calculation error on Tether which caused any listing with a Tether market to become artificially inflated. We will release a post mortem in the near future giving more details and our plans for preventing this in the future.— CoinMarketCap (@CoinMarketCap) August 3, 2018
One user tweeted out that this is a good representation of how inflation of fiat affects cryptocurrencies whilst others showed anger and annoyance at the site, telling them to own up to their mistakes.
A good modeling of how inflation of fiat dollar will effect cryptos.......— BTC & LTC Jason⚡ (@JasonEbacher) August 3, 2018
What a load of bs. Everything was messed up, screenshot for example shows VeChain in 5th place with an 89% drop in price. This wasn’t even the worse of it. Own up to your mistakes. pic.twitter.com/eEUAcOmnA0— Riccardo Esclapon (@Esclaponr) August 3, 2018
This isn’t the first time that CoinMarketCap has had issues when it comes to displaying statistics about coins. In January, the website stopped indexing several South Korean exchanges, leading a huge dip in the market. One of the world’s largest exchanges, at the time, which was Bithumb, was removed. This greatly affected many coins and actually led to a 30 percent drop in price and a $20 billion market capitalization loss, for Ripple – this can have catastrophic effects, especially in the short term.
This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity. We are working on better tools to provide users with the averages that are most relevant to them.— CoinMarketCap (@CoinMarketCap) January 8, 2018
CoinMarketCap is certainly become a less reliable option for traders, leading to many a trader achieving a loss on their investments from unreliable coin statistics. Trade with caution and always check your prices with multiple sources that use their own data.
Editor Note: This article was submitted by a guest author, views and opinions are solely his own.