When Bitcoin and Altcoin enthusiasts want to follow the price, market cap and volume of cryptocurrencies they often turn to well known valuation website CoinMarketCap.com. Clearly wielding some serious muscle when it comes to market perception, the site’s prices and market capitalizations are regularly cited in mainstream and digital currency publications. Its popularity and millions of visitors daily have made CoinMarketCap the largest cryptocurrency website in the world.
Demonstrating the almost instantaneous effect CoinMarketCap’s feeds have on the broader cryptocurrency market, in early January 2018 the site quietly removed data from Korean exchanges, causing widespread panic across the digital world as traders scrambled to sell first and ask questions later. Within a matter of hours it became clear why some $100 billion in market capitalization had been erased and many put the blame squarely on Coin Market Cap.
The popular price-tracking website, coinmarketcap.com, on Monday removed data from some South Korean exchanges from its price quotes for a range of virtual currencies including bitcoin, Ethereum and Ripple’s XRP. The move followed a South Korean government crackdown on cryptocurrencies.
Via: Zero Hedge
The web site quickly moved to rectify the incident with very little blowback and prices recovered seemingly just as quickly as they fell.
Though a minor blip on the long-term crypto charts, the incident showed that a single web site merely has to change their algorithm in the wrong direction to incite a full-on sell off.
Now, according to a report from a newly created Twitter page called CoinMarketCap’d, there may be a lot more going on at the web site than appears on the surface.
In their first ever Tweet, CoinMarketCap’d, similar in function and form to Bittfinex whistleblower page Bittfinex’d, claim they have direct evidence that Coin Market Cap is using fraudulent data to manipulate cryptocurrency markets:
We have irrefutable proof that @CoinMarketCap is providing SCAM information to everyone on their site. It should immediately cease being used by the entire industry as a FRAUD with their own agendas. Detailed information in a post coming soon. #scam #fraud #cmc
— CoinMarketCap’d ? (@CoinMarketCapd) March 19, 2018
That tweet was followed up several hours later with a scathing report published on Medium in which CoinMarketCap’d says the website is involved in market manipulation:
Intro: How CoinMarketCap (CMC) manipulates the market by showing fraudulent information to the community. #bitcoin #blockchain #coinmarketcap #fraud #scam #sec #cftc #cryptocurrencyhttps://t.co/aAwg4u7mKh
— CoinMarketCap’d ? (@CoinMarketCapd) March 20, 2018
Among the accusations being made are fraud, insider trading and market manipulation:
It has come to our attention that CoinMarketCap.com, the Number 1 website in the crypto-currency industry, is showing massively fraudulent and scam information (on purpose) to its users. As a site that is used frequently for reference points by many news organisations, trading outlets, companies, informational sites and individuals, we thought it would be in the best interest of the community to write about what has been really going on with this “trusted resource”.
Please note, our research indicates that multiple attempts to fix information by many coins on CoinMarketCap.com through contacting them through their support requests or online social media sites such as BitcoinTalk.org, reddit.com and other places has gone unanswered, ignored and/or explicitly overlooked/denied. By explicitly overlooked/denied, we mean that after contacting their support with up-to date and obviously correct information, they refuse to update the data. Many hundreds of coins on CMC are affected very negatively (or positively) by this. A lot of them have given up trying to get CMC to put correct data on their site, and have made sticky posts in their own respective forums as to this issue instead.
We also believe that there is massive insider trading going on with the employees, owners and others involved with CoinMarketCap. Our research, including talking to multiple coin creators, shows anomalous buying of coins between times that the coin creators asked CMC to list their coin (through their google form) and between when it actually gets listed on the site. This could mean that CMC insiders know that certain coins will pump, and go on a buying spree to front-run the listing of the coin and the public market sentiment. This can be seen over and over again when analysing the action on coins when being listed.
Pump and dumps are also being actively allowed and managed by the team at CMC without the knowledge of the coin creators or coin communities themselves. This can be seen by the direct manipulation of the circulating supply of some coins. CMC puts the circulating supply as very high at certain points (increasing the market cap), then drops it down to a much lower number later (lowering the market cap). This moves these coins up or down their numbered list causing massive buys and sell offs at the whim of CMC.
Following their initial set of posts, CoinMarketCap’d has begun providing purported evidence and research for their accusations as noted in their latest post entitled Fraudulent data provided on CoinMarketCap distorts entire crypto-currency market perception.
CoinMarketCap’d says they are preparing a detailed series of articles that will reportedly provide evidence for the accusations being made but the sentiment is already being seconded by some industry observers:
Glad you posted this. @CoinMarketCap is unreal with their motives. They pick and choose which coins they will update information on. They’re a complete disaster. @brandonchez (now deleted) @gilliantee (business partner). On a brighter note @LiveCoinWatch has been great.
— Crypto_All_In (@HastenCrypto) March 22, 2018
@CoinMarketCapd Thank you for your post ,waiting for more! as a small example of killing or not giving equal opportunity to coins compare @CasinoCoin at cmc (#1412) and at @LiveCoinWatch (#192) which been very responsive and helpful#csc $csc
— Marcel Younes (@marceldy) March 22, 2018
ADK got Coinmarketcapped. Coinmarketcap deleted circulation supply without any reason. then ADK’s rank got dropped down from 23th to 1080th
— 情報アカ (@jouhouakasanda) March 22, 2018
@CoinMarketCapd Take a look at my recent tweets, @CoinMarketCap has literally done nothing after asking them to update CasinoCoin stats for over a month. I believe the foundation contacted them several times as well, and so did numerous community members. #wewantcorrectdata
— Sleep in Crypto (@goodmadsucks) March 22, 2018
Other observers are skeptical of the accusations or not yet convinced of the legitimacy of the claims:
And accusing coinmarketcap of market manipulation? Seriously? Like I said again, mass media is a way bigger market manipulator with fake news and nobody calls them out, but I’m calling you out for baseless claims. You cannot say they’re scammers and market manipulators yet
— The Wolf (@Decimal_numbers) March 22, 2018
My initial quick take is that most of these are judgment calls or possibly them being overwhelmed with a big task. But some of them can’t be dismissed that easily and those may have had very significant consequences.
— David Schwartz (@JoelKatz) March 22, 2018
BlockCubed.com has contacted CoinMarketCap.com via their website for comment regarding the accusations being made but has not yet received a response.
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