Coinmarketcap will no longer count Bitfinex in its weighted average listings
Coinmarketcap, the online space that tracks cryptocurrency market caps and prices, will no longer pull from the Bitfinex exchange for its weighted average.
Unreliable information
You see, Coinmarketcap pulls its information from different cryptocurrency platforms. It relies on these spaces to provide accurate numbers regarding asset prices. However, Bitfinex has been failing to do so.
According to The Next Web, Bitfinex portrays Bitcoin’s price at 5.5% higher than it’s supposed to be. At the time of its publication, the actual price was $5,696.94, but Bitfinex reported it as $6,009.98. That’s nowhere close to correct, and claiming it to be so is misleading to customers.
The platform is an outlier here. Pretty much all the time, exchanges report prices around 1% of the average. However, due to Bitfinex’s false reporting, Coinmarketcap’s average prices were being heavily affected. So now, when looking at Bitfinex’s Bitcoin price on the tracking website, there’s an asterisk next to it that denotes it won’t count in the average.
Solving problems with DATA
This news comes to us shortly after learning that Coinmarketcap is partnering with multiple cryptocurrency exchanges to fight fake trading volumes. The grouping, called DATA, is in place for the following:
“DATA seeks to promote greater transparency, accountability, and disclosure from projects in the crypto space. This initiative is underpinned by our belief that the provision of additional data points would: (i) empower our users to make more informed decisions, and (ii) provide a means for projects to differentiate themselves through enhanced disclosures.”
Put simply, the goal is to establish a framework within the cryptocurrency space. Overall, DATA notes that anyone ignoring the rules set in place will no longer see a listing on Coinmarketcap.
This Bitfinex situation is only the first example of Coinmarketcap following this new policy. We’re sure to see more in the coming days unless these trading platforms can get their act together.
The post Coinmarketcap will no longer count Bitfinex in its weighted average listings appeared first on InsideBitcoins.com.
InsideBitcoins.comhttp://bit.ly/2FUbkJa via @Max Moeller, @BruceDayne
