Coin Market Cap, one of the most popular cryptocurrency analysis sites around, is allegedly reporting fake volumes all over the place.
Why Is Coin Market Cap Not Moving Faster to Fix This?
According to a recent report published in Forbes, approximately 75 percent of the data presented on Coin Market Cap is not real. Many cryptocurrencies, especially bitcoin, provide fake trading volumes to analysis websites, but the problem is that Coin Market Cap is still reporting this information as though it were real.
The news may allegedly be hitting bitcoin and other forms of crypto hard at press time. The granddaddy of virtual currency has once again fallen below the $10,000 line. It is currently trading for $9,942, which is still relatively high in comparison to its last drop to the $9,000 range, but it’s nowhere near where most traders would like to see it.
In addition, the drop has occurred in incremental stages. The currency was falling roughly $100 every few hours or so on July 22, and even started the day off at a measly $10,200+, meaning there wasn’t much room for the currency to go from the start.
Coin Market Cap first acknowledged the fake data being presented on its site roughly four months ago through a series of tweets in March. The company stated:
We’re working hard to build constructive solutions to address volume concerns. We look forward to more suggestions as we build our tools for our users.
However, one would assume that in all this time, the problem would at least be halfway fixed. Unfortunately, that doesn’t seem to be the case. Coin Market Cap is still allegedly reporting incorrect information and offering up “sweet little statements” about how it plans to tackle the issue.
Carylyne Chan, the chief strategy officer at the company, explains that the issue of fake volume reporting is very real, and despite the lack of maneuvers thus far, she assures the site’s visitors that they are doing all they can to fix the problem. She comments:
The team is trying to do it right… It’s always been balancing between doing it right rather than doing it quickly… The team has received just one complaint so far for BKEX and will be further monitoring before an alert will be put up on the site.
The real problem here, however, is that many other analysis sites have already fixed their information and reporting structures to ensure correct data is provided, so why is Coin Market Cap taking so long?
This is really a philosophical question for us because ever since we started the site, we try not to censor information… A primary object is not to weed out and ignore data points but really to enrich the decision-making process of our users by publishing a wider array of data points.