Let ’s discuss how CoinMarketCap (CMC) can mislead investors and newcomers to the market. It’s important to note that CMC is the most popular website in the entire cryptocurrency industry. Most people trust it as the go-to resource to find out anything crypto related, how could they not?
CoinMarketCaps supposed deception.
To start, getting a project needs to jump through a ton of hoops to get listed on the site. Reaching out to personnel on popular social media like Reddit and Twitter go largely unnoticed, as well as through official channels. This results in projects having wrong data on CMC, which directly effects prices and investor opinions.
Now, this leads to another thought. Insider trading. Remember, this isn’t a regulated market, and CMC knows what will be listed, when, and they can impact a whole lot of people by changing some things on their site. Why wouldn’t they be involved in insider trading? They know what goes where at what time and can load up on cryptocurrencies before anyone else.
Additionally, it has been noticed before that certain coin’s spike in price drastically, or experience a lot of controlled purchase volume before a listing. Which effects the initial ranking of a project on CMC and the attention that it gets.
Other potential illicit activities.
According to others, and probably without a doubt, the employees behind CMC are bribed into carrying out certain actions. I’m sure that employees take bribes to adjust circulating supplies, just to alter a coin’s market cap and push it either up or down. Also, there are a bunch broken links, outdated coins, meaning dead projects for the most part or with dysfunctional technology.
So, misleading numbers, broken links, insider trading, and an unresponsive company in general. Really goes to show what a wild west this market is at the moment. As well as how skewed price may be because of this. There’s one thing for certain, is that we need a proper contender to CMC. One party controlling so much informational power is a dangerous entity, due to the fact that most of the trading activities executed are based on that information.