Crypto Bigwigs Blame CoinMarketCap.com Of Data Problems | Crypto News

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Crypto.com and Coinbase Global Inc have accused the data provider of briefly posting huge gains for many coins of the cryptocurrency.

By Yueqi Yang and Olga KharifBloomberg

Posted on Dec 15, 2019 202115 Dec. 2021

The finger pointing has already started after data glitches prompted the brief display of astronomical gains for many cryptocurrencies on Tuesday night.

Crypto.com chief executive Kris Marszalek blamed popular data provider CoinMarketCap.com and said he was working to remove “unreliable price feed” from his site. Coinbase Global Inc. president and chief operating officer Emilie Choi also cited poor price data from CoinMarketCap.com, which is owned by rival exchange Binance.

The incident was “indicative of an emerging industry,” Choi said in an interview Wednesday at the Bloomberg Technology Summit. Coinbase, the largest crypto exchange in the United States, has over 70 million customers worldwide.

(Bloomberg)

While the exact cause of the issues is still unclear, some in the industry are pointing to the possible role of the API or the application programming interface. Websites use APIs to communicate with each other, and a website can make its APIs available so that other websites can integrate their data, for example.

Coinbase did not respond to questions about the price of the data feed from CoinMarketCap. Crypto.com declined to comment.

Technical issues have long plagued the cryptocurrency world, with many exchanges often struggling to process transactions during times of high trading activity. The feature of anonymity that has been a selling point since the development of cryptocurrency has also made it difficult to resolve hacks and thefts.

“The perception here is that it happens quite often at the level that people start to get impatient,” said Owen Lau, analyst at Oppenheimer & Co. “While people are still looking for the root cause, I won’t be surprised if Hear that people would blame the customer facing app like Coinbase even if the issue is with the data provided by the third party.

You have nothing to tell us – we are already working on removing @CoinMarketCap’s unreliable price feed from our product.

– Kris | Crypto.com (@Kris_HK) December 15, 2021

“For these markets to be seen as credible by institutions and regulators, we need reliable and transparent data sources,” said Nic Carter, co-founder of Coin Metrics, a crypto data platform.

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