Cryptocurrency ranking portal CoinMarketCap shows inflated prices due to data error

On 4th August, CoinMarketCap, the online cryptocurrency portal for cryptocurrency market ranking, charts and other related information, faced a data error that resulted in artificial inflation of many cryptocurrencies on its chart. Following this, the Twitter handle of the website posted a clarification dialogue that read:

“We are currently aware of an issue with the data we are pulling in. We are investigating this matter and we will follow up with more information shortly.”

In the comments of its tweet, CoinMarketCap was called out and accused of manipulating cryptocurrency prices. To this, they replied by saying that it was not a case of manipulation but a price calculation error on Tether. The error led to an artificial inflation of any cryptocurrency related with the Tether market.

The ranking portal also promised to release a ‘post-mortem’ report on the case in the foreseeable future. Reportedly, the team is currently investigating the matter actively. During the data fuss and artificial inflation, Bitcoin reportedly showed an exaggeration inflating its trading price to over $73,000 on the chart.

Another issue with the website was that the price chart was not showing data for VeChain [VET], which is currently the 20th ranking cryptocurrency on CoinMarketCap. A user informed the portal of this and commented with a screenshot.

With a prompt reply, CoinMarketCap conveyed to the user that the team has made the requested changes and will be reflected on the portal soon. In case of the changes not being reflected, the website told the user to approach the team for the same.

In the month of July, CoinMarketCap was also accused of aiding wash trading, which essentially means that an individual or a group of individuals buy and sell an asset simultaneously to manipulate the market and fake market activity.

Mark Weinands, a crypto-enthusiast commented:

“Were you pulling data two months from the future?”

Inver_cibernetico, an economist posing some serious allegations also wrote:

“this is an attempt at manipulation, we should sue or accuse them with SEC”

A cryptocurrency investor, George Larkdas, sought an apology from CoinMarketCap in the comments, saying:

“Aren’t you suppose to apologise first before making any comment on this matter considering how it affects people”