Bitfinex, one of the most popular crypto exchanges in the market, has been excluded from CoinMarketCap to calculate BTC/USD price. The aggregation data site has been making some changes to the information they use to make the crypto and exchange rankings.
CoinMarketCap Makes Some Changes
Bitfinex has been involved in some controversies in the last few days due to the fact that the company used several hundreds of millions of dollars from Tether (USDT) to pay for debts that the company had.
Bitfinex has usually a higher price per BTC than other exchanges such as Coinbase, Bittrex or Bitstamp. A few days ago, when Bitcoin was close to reaching $6,000 the digital currency surpassed $6,000 on Bitfinex, over $400 above other crypto exchanges.
CoinMarketCap has been trying to improve the data that it uses to calculate the price of the most popular digital assets in the market. Moreover, they also want to help investors to have better information regarding the cryptocurrency space. CoinMarketCap announced that they have now formed the DATA alliance in which they will be working with exchanges in the space to have more accurate information about digital currencies.
In order to reduce the effect of such a difference in the price of Bitcoin from the aggregated USDBTC value, CoinMarketCap decided to exclude this price from the final price of BTC. The price exclusion was noticed by the crypto market analyst Excen on Twitter a few days ago.
— Exden (@CurtisHelms) May 5, 2019
According to Larry Cermak, head analyst at The Block, explained that this makes sense because there was a 6% premium on BTC price that with a significant volume move the price calculation much higher than what it should be.
At the moment, Bitfinex has $850 million frozen in different countries, including the United States, Poland, and Portugal. At the same time, the company is launching an Initial Exchange Offering (IEO) that aims at increasing the liquidity of the company during the next months.
One of the reasons why Bitfinex could be experiencing such high prices compared to other platforms is related to the fact that different users and investors decided to move away from Tether into other digital currencies in this crypto exchange.
Back in October 2018, Tether lost its peg with the USD and Bitcoin skyrocketing above $7,000. This was due to the fact that users wanted to escape from a digital currency that was losing its peg against the USD.