When fraudulence strikes, more often than not, the scammed are left scratching their heads, echoing “how did this happen?”.
The ever popular platform CoinMarketCap.com, has been revealing its true colors to its’ users in terms of the faulty information it has shared in its information vault. Being that the dangers of misinformation can bring about the annihilation of a business, (particularly ones involving risk such as the fluctuating cryptocurrency markets), light was recently shed on CoinMarketCap’s bumbles.
One particular blogging platform, Medium, recently wrote a summary of the shady activities that transpired from the CMC page. Medium shared that based upon multiple attempts at contact to have the organizers rectify the issues with the tokens from sites such as reddit.com, Bitcointalk.com, etc., their efforts were explicitly overlooked or denied.
Further theories state that the activities recorded on CMC allude to a possibility of trading and exchanges occurring through employees and associates of the platform. What’s indicative of these suspicions is that investigators noted
For comparison, take your memory back to back to December, 2001, when Martha Stewart was investigated for fraud in her own franchise? This scenario with CMC is essentially akin to that, but with a few different variables.
According to certain timetables that have been presented, the ebb and flow of the coins in the platform’s marketplace bore imprint on the large fluctuations that occurred in the coins’ natural wavelengths. When participants bought and sold coins, the major deviations reared right around the time CMC set their market caps, which quantities were reported at various exaggerated proportions. In performing this activity, it perpetuates massive
Another sour taste that CMC left in the mouths of users is its hand in the death of its own coins. How can something which is not an organic carbon-based form have a “death”? Pretty simple. What a blockchain based organization has the executive power to do with their own tokens is to lower the amount of tokens available to where pickings are slim or take it out of circulation entirely.
By keeping it in extremely low supply, this chain reaction reduces the value of the coin, as well as allows the company to keep all the coins plus the buy ins that participants invested in. CMC maintains the status quo on their own rate of exchange in accordance to not updating the numbers on their supply to where it is a losing situation for everyone outside of the plot.
In addition, there is the ongoing issue of broken links littering the website when an inquiring mind makes efforts to navigate the site in search of coins and updated information on their supply. The lack of the differences in the numbers and denied access to any roads to knowledge of the coin’s state of affairs on the market is enough to raise red flags.
In lieu of the gamut of shady activity occurring, Medium set the tone to encourage those who have invested in CoinMarketCap to pitch a big enough stink and vocalize their dissatisfaction with its poor practices in order to see numbers budge.
Given that the company is officially ranked with the highest volume of profit amongst all namesake blockchain businesses via users and advertising, it leads one to ponder why did they choose to sully themselves with a bad rep? In the realm of concept, another running ideology is that there is a centralized system at play behind the curtain which may be run by government officials, mining cartels, banks, core regulators, etc. whom of which would certainly contribute to a nuclear meltdown in the system.
The downside to the story currently being shared, is most of the framework shared above require burden of proof. Medium commented that they are currently in progress to collect “irrefutable proof”, and that it will be an ongoing process until delivered. They do highlight on a very critical aspect: The blockchain and cryptocurrency industry is based on elimination of third parties so that transparency is cultivated for any exchange of business and that all users have the capabilities to protect their assets.
All in all, CMC did nothing to address the concerns and requests of its subscribers/miners. The company has been negligent of its supporters and the situation does indeed reek of some very corrupt and underhanded manipulations taking place in the servers.
Hence why the community of data miners and coin investors must be vocal and insist that there be either a) updated token numbers or b) require that the organization develop another value resource in which to reimburse the users.
Time will tell.