The premium is too exaggerated, CoinMarketCap stops using Bitfinex's bitcoin price

The cryptocurrency data provider CoinMarketCap has excluded the bitcoin price offered by Bitfinex from its weighted average calculation.

Bitfinex

When you look at the BTC and USD trading pair data on CoinMarketCap, you will see that Bitfinex's price has an asterisk and the message at the bottom is "Price is excluded."

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It is worth noting that as of press time, Bitcoin’s transaction price on Bitfinex is more than $300 higher than other major exchanges. For example, the price of Coinbase and Gemini is about $5,624, and the price of Bitfinex is $5,985.

CoinMarketCap explains the conditions for excluding prices on its website:

The price of any cryptocurrency is the weighted average of the volume of the cryptocurrency market transaction against the price… Some prices are artificially excluded from the average. If a price does not reflect the free market price, an asterisk is used on the market page. (*) indicates; (cannot reflect the free market price refers to), for example, when an exchange's replenishment function fails, or because of regulatory issues, it is impossible for anyone outside a geographic area to buy coins. When our algorithm detects that certain prices exhibit significant outliers compared to other pairs of transactions in the same cryptocurrency, these prices are automatically excluded, such anomalous values ​​are three stars on the market page. No. (***) indicates.

At the same time, Bitfinex continues to be in deep controversy . At the end of last month, the Attorney General of New York alleged that Bitfinex, who shared the team with the stable currency issuer Tether, lost $850 million in company and client funds, and then used a loan in the Tether reserve to secretly fill the funding gap. .

Bitfinex then claimed that the funds had been “blocked” by multiple departments and the company was working hard to recover the funds.

Today, Bitfinex announced the IEO, hoping to raise $1 billion by selling tokens LEO. Although the official white paper for this release has not yet been released, Bitongx shareholder Zhao Dong has begun accepting LEO appointments .

In January last year, both Bitfinex and Tether were summoned by the US Commodity Futures Trading Commission (CFTC), but the regulator did not disclose the reasons.

Last week, exchanges such as CoinMarketCap and Bitfinex formed a new organization called Data Responsibility and Transparency Alliance (DATA) to address concerns about cryptocurrency data.