‘Honest Coinmarketcap’ Claims Crypto Trading Volumes are Ridiculously Exaggerated
Have you ever stopped and wondered how much your assets like Bitcoin, Ethereum, or other altcoins are currently sitting at? Then it’s normal to come across Coinmarketcap, a platform which extracts and claims to represent real-time prices of coins. Unfortunately, a man who goes by the name of Andrew Rennhack claims to have created his own version of Coinmarketcap, only to find out that the data has been overstated.
Based on a report from Bitcoin.com, Coinmarketcap has been greatly criticized for the approach taken on their part when it comes to pulling its data from exchanges. Rennhack’s platform is a simple page on Google Sheets. While his claims might have been shocking for many traders, the reliability of his information is lacking, as we are yet to know where he gathers his data from.
1/ I spent the afternoon writing a script I call Honest Coinmarketcap. It displays trading volume by coin by USD pairs only(bitfinex excluded as its USDT). Attached are coins ranked by marketcap, listed volume, true volume pic.twitter.com/x7MEy1dD2i
— Andrew Rennhack (@andr3w321) May 12, 2018
Rennhack’s tweet addressed his ‘Honest Coinmarketcap’. He goes on to state what type of information he thinks should be provided and how the coins have been ranked. If his data is truly representative of the crypto market, then one can conclude Coinmarketcap has in fact been overstating coin values for some time now.
The Honest Coinmarketcap spreadsheet supposedly has two tabs, where the latter compares fiat volume with Coinmarketcap’s listed volume. Based on the Rennhack’s information, Bitcoin’s actual 24-hour trading volume is $1,508,351,500 while Coinmarketcap listed it as $8,281,980,000, which is eight times the original value. Similarly, both Ripple (XRP) and Bitcoin Cash (BCH) have been ridiculously exaggerated to as high as 40 and 70 percent, respectively.
This is definitely deceiving for traders, as many rely on the market cap, as one of many factors, prior to making investments. It is too soon to tell whether or not Rennhack’s Honest Coinmarketcap is legitimate as his spreadsheet is supposedly “far from complete”. However, many have argued that several platforms have overstated values in the past, making Rennhack’s claims worth considering.