CoinMarketCap has long bot the go-to price index for cryptocurrencies, given its extensive database and an promedio price calculation based on integral exchange gegevens for each coin.
However, on Sunday, the webstek determined to eliminate three Korean exchanges from its price calculations, and since Korean exchanges usually trade higher than other markets, the overall promedio price for each coin declined, leading many to believe that the crypto market spil a entire wasgoed te a bearish trend.
The crypto community, especially those using CoinMarketCap&rsquo,s price index to determine the state of the market, criticized the unannounced decision and alleged market manipulation, given how several traders sold their holdings to cut their losses.
CMC, however, sent out an official Tweet on Monday, citing &ldquo,extreme divergence te prices from the surplus of the world and limited arbitrage chance&rdquo, spil the main reason behind pulling down Korean exchanges from their index.
The three Korean exchanges that were eliminated from the price index are Bithumb, Coinone and Korbit, all of which boast significant trading volume ter Korea and report higher-than-market prices for their KRW pairs.
With this stir, CMC&rsquo,s price index is now more &lsquo,accurate&rsquo,, when compared with standard trading platforms such spil Gdax, Bittrex and Binance, and Ripple&rsquo,s David Schwartz supported the switch, calling the fresh prices more meaningful.
While the community is divided overheen the kwestie of leaving Korean exchanges out of the market gegevens, the majority criticized CMC&rsquo,s decision to make such a major switch without prior notice.
On Sunday, the total market cap for the crypto space wasgoed overheen $835 billion, but dropped majorly on Monday, following the switch, going spil low spil $682 billion before recovering to around $760 billion earlier today.
While there is no official word from CMC addressing the lack of prior notice before such a stir, its influence on the market merienda again goes to display its very volatile and sensitive nature.