CoinMarketCap has come under fire after it displayed values that were 10,000 times higher than the true values of various cryptocurrencies on Tuesday.
CGN described the unrealistic gains listed on the site as having made “jaws drop” on Wednesday.
The mistake has been attributed to poor API management and prompted several crypto companies to publicly deride the price tracking website, which licenses its information to other sites via the API.
Coinbase and Crypto.com are among the companies that displayed inaccurate information as a result of using the CoinMarketCap API to feed data to their own sites.
CoinMarketCap responded to the issue, and its knock-on effect on other sites, with a casual Tweet.
— CoinMarketCap (@CoinMarketCap) December 15, 2021
Crypto.com CEO Kris Marszalek blamed CointMarketCap.com openly and said that his company would be removing “the unreliable price feed” from its website.
He was joined by Coinbase Global COO Emilie Choi who also criticised CoinMarketCap for the bad reference pricing that was displayed.
Speaking to Bloomberg on Wednesday, Choi said that the issue was “indicative of an emerging industry”.
Neither Crypto.com nor Coinbase revealed how much they were paying CoinMarketCap to use its information.
CoinMarketCap has not been able to provide information about what had caused the glitch and how the API misfired.
Oppenheimer & Co analyst Owen Lau said: “I won’t be surprised to hear that people would blame the client facing app like Coinbase even if the problem comes from the data supplied by the third party”.
Ultimately, regulators have raised issues with the way that crypto exchanges receive their data. As Lau explained, in order for central authorities to endorse crypto more openly, the companies need to make sure that their data feeds are credible and transparent.