- CoinMarketCap charges to amend inaccurate data.
- Ergo exposed the practice as exploitative.
- The accuracy of CoinMarketCap data is being questioned.
Cryptocurrencies are powered by distributed ledger technology, allowing open access to information on trades, deposits, and interactions. This is a significant advantage over legacy markets, where data is often opaque and siloed. Crypto data aggregators have emerged as “search engines” to compile blockchain activity into digestible market insights and metrics.
CoinMarketCap is the most visited data aggregator site, boosting website traffic that towers over the competition. However, smart contract platform Ergo recently blasted CoinMarketCap by revealing concerning data practices at the company, specifically the policy of charging fees to amend incorrect data.
CoinMarketCap Under Fire
Ergo recently called out CoinMarketCap over concerns about their data policy practices. Ergo claimed it had spent over a year trying to get CoinMarketCap to correct inaccurate information on the circulating supply of its ERG token. Circulating supply is a key metric that impacts market capitalization and token rankings on the site.
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To action the change, CoinMarketCap requested the completion of information related to verification of the change, as well as a $5,000 payment. Ergo labeled the payment charge akin to “hostage fees” while questioning the accuracy of CoinMarketCap data based on companies refusing to cave on exploitative charges.
CoinMarketCap is supposed to be an independent compiler of blockchain statistics. However, its policy to charge for data corrections seems at odds with this role. In contrast, Ergo stated that it has no issues with competing aggregator CoinGecko.
Is CoinGecko a Better Alternative?
Ergo mentioned that CoinGecko displays the correct circulating supply of tokens based solely on API connection. This highlights a key difference between the two data aggregator platforms regarding business models and incentives.
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However, opinion is split on which platform is better from a user perspective. A Reddit user who identified himself as a software developer summarized his thoughts on the matter by stating that the two are “shockingly similar” but expressed a preference for CoinMarketCap due to its more modern and clean user interface.
“While I get that apps with overlapping features exist, usually there are differences in at least the UI and advanced features. But it almost feels like they're the same apps wearing different skins”, stated the Reddit user.
Commenters on the post had mixed views, but a preference for CoinGecko’s higher stability emerged as a consistent theme. Additionally, CoinGecko’s independent status was mentioned. Following Binance’s acquisition of CoinMarketCap in 2020, CoinGecko co-founder Bobby Ong stated that staying independent is important to “neutrality in the data space.”
On the Flipside
- While concerning, outdated CoinMarketCap data may not indicate malicious intent but operational challenges as the crypto space evolves.
- CoinMarketCap has more than twice the number of visitors of CoinGecko, making it much more influential.
Why This Matters
Accurate crypto data is critical for informed investing. However, allegations that CoinMarketCap charges to amend incorrect data raise concerns about incentives skewing objectivity. Financial motives that potentially compromise data accuracy undermine integrity and transparency.
Learn more about CoinMarketCap’s drive for crypto exchange transparency here:
CoinMarketCap Introduces a Proof-of-Reserve (PoR) Tracker for Crypto Exchanges
Find out more about Alex Jones’ Bitcoin illiteracy here:
Failed Bitcoin Challenge Sees Alex Jones Lose 10,000 BTC
