WHY WAS THERE A $100 BN FALL IN THE TOTAL CRYPTOCURRENCY MARKET ON COIN MARKET CAP? HERE IS WHY….
Ok, so those of you Cryptocurrency aficionados will reguarly visit the website Coinmarketcap.com for your real time view of how your cryptocurrencies are performing, so often that according to Alexa, CMC is now the 154th most visited website in the world.
If you don’t use CMC the likelihood is that you use a tool that uses it’s API’s to pull data into the tool you use.So today if you had checked your coins value, you may of thought WTF as you saw more red than the soles of a pair of Christian Louboutin killer heels.
For all wants and purposes the Cryptocurrency market appeared to have had a brutal, brutal day, loosing >$100Bn of its total market cap, causing many to panic sell thinking the wheels on the Altcoin gravy train had stopped turning.But is this the case? Errrm, actually no.
Earlier today Coin Market Cap removed Korean exchanges from their coin price calculations and being that all coins are about 30% pricier over there, it instantly tanked the prices on CMC graphs, in practice this is actually not relevant to people outside Korea who don’t trade there.
In turn a large number of people did not recognise what actually happened and that there were not moves/selling on their western exchanges, so many began and are now dumping large amount of coins such as Bitcoin BTC, Ethereum ETH, Tron TRX and ZClassic ZCL, trying to “cut loses” because of the false impression that their coin is crashing.
My opinion is that this could of been handled much better by Coinmarketcap.com, The Cryptocurrency market is a world in which it’s hard for even the most experienced eye to cut through the noise, propaganda and BS to decipher what is ACTUALLY going on.
So, hey CMC, Maybe an easy bit of UX like a banner saying “WE HAVE EXCLUDED KOREAN EXCHANGES BECAUSE OF THIS OR THAT AND IT WILL HAVE SUCH INFLUENCE ON CALCULATIONS” would of been sensible.
Personally, I didn’t panic sell.. as I understood what was happening.