Coinmakertap seems stepped up with its correction mechanism. The platform has excluded BTC/USD data of Bitfinex’s market from its calculation.
If you dig deeper into coinmarketcap data, you will realize asterisk (*) mark for BTC/USD price provided by the debatable Bitfinex cryptocurrency exchange. The mark denotes the ‘price excluded’ from CMC average calculation which can be seen at the bottom of the coinmarketcap chart.
At the moment, Bitfinex with Bitcoin average trading stands on 93rd position wherein 1 BTC is trading at $5980 at its platform – but the CMC correction has excluded it from the data.
The exclusion comes after CMC examined BTC price at Bitfinex is trading at a premium of over $300. This was first noticed on May 03, 2019 when Bitcoin on other major exchanges was actually peaking to touch $5800. Besides that one asterisk mark, CMC points two asterisks and three asterisks by adding their purposes.
On its methodology page, coinmarketcap explains what these asterisk defined for;
Some prices are manually excluded from the average, denoted by an asterisk (*) on the markets tab if the price does not seem indicative of a free market price; for example, when an exchange disables withdrawals or deposits, or regulatory conditions make it impossible for anyone else outside of a certain geographical region to buy coins. Some prices are also automatically excluded when our algorithms detect that the reported price is a significant outlier when compared to other market pairs for the same cryptocurrency, denoted by three asterisks (***) on the markets tab.
Moreover, Twitterati noticed the exclusion on May 04. As such, a Twitter user Exden with handle @curtishelms tagged CMC, Bitfinex and three Twitter user and broke it out as follows.
In addition, despite the controversy and trouble around the exchange, Bitfinex is on way towards its IEO to raise funds which are not in the interest of the crypto community at large. In fact, after the New York City Prosecutor released court decision, traders are closing off the door of Bitfinex cryptocurrency exchange.
So readers, what’s your take on CMC’s decision of excluding Bitfinex’s BTC price from its calculation.? let us know in the comment below.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com