- This topic has 19 replies, 1 voice, and was last updated 1 week, 5 days ago by scoobysi.
- Thursday, November 24th, 2022 at 15:09 #410015OneThatNoseOneParticipant
In April 2020, Coinmarketcap(CMC) was acquired by Binance.
Now, CMC and Binance maintain that:
**CoinMarketCap and Binance are separate entities that maintain a strict policy of independence from one another: Binance has no bearing on CoinMarketCap rankings, while CoinMarketCap has no influence over Binance’s operations.**
But we know how business is really run and this is just legalese to maintain the image of separation and no conflict on interest. To prove this statement is not true, we need only look at the data CMC presents.
Looking at the exchange data, this is the top 3 exchanges.
Binance has been at the top of this list for YEARS. Their score of 9.9 has never dropped. And other exchange lag behind Binance by almost *TWO WHOLE POINTS*. This has been the structure of the list for years. Even FTX was ranked at around 8(didn’t prove to be worth much anyhow). My point is here we see how Binance manipulates the data to have their exchange far above the competition with a score of 9.9 that indicates near perfection which we all know is not true.
Also, they choose to rank the exchanges based on criteria that HEAVILY favours Binance. Binance ranks exchanges on these four criteria.
We can certainly see how the first three heavily favour Binance. In particular, for web traffic score:
Basically the top exchange is given maximum points and other exchanges are ranked relative to the top exchange. Nobody here cannot tell me this is not an absolutely terrible and extremely biased way of ranking. What is worse is Binance has been found many times to [operate in jurisdictions without licenses](https://www.wsj.com/articles/binance-became-the-biggest-cryptocurrency-exchange-without-licenses-or-headquarters-thats-coming-to-an-end-11636640029), in at least a dozen countries according to WSJ for which they have quite a number of cases against them as there were also reports of them trying [to illegally get around](https://www.reuters.com/investigates/special-report/fintech-crypto-binance-zhao/) US securities laws and regulations. I mean to say that they “cheated” their way to the top to gain a wide market share and now is using that factor to manipulate a “trusted” web resource to raise their ranking. Think about all those new to crypto who may go to CMC for information and they all see Binance far and away at the top with a 9.9 score; think about how heavily that may influence their decision of which exchange to use.
Just prior to Binance buying CMC, Binance was ranked 14th in early April 2020.
[CMC Exchange Ranking just before Binance acquires CMC](https://preview.redd.it/6ixs2l29lw1a1.png?width=1221&format=png&auto=webp&s=214170cbada7fbcb832a6d705123e11a59d82d45)
*SoMEhOw,* a month after the deal in May, CMC was ranked **first** after instituting the same “Web Traffic Score”. As far as I can tell, Binance has never fallen from 1st rank since CMC was acquired by Binance. If this doesn’t scream manipulation I don’t know what does.
[CMC Exhange Ranking after Binance acquires CMC](https://preview.redd.it/46jivg2nmw1a1.png?width=1174&format=png&auto=webp&s=4ddb8fbaf9df51fe8d0c125981736a5b6e3d32e0)
Apart from exchange ranking CMC also is a large aggregator of token prices and price changes. What is stopping them from “influencing” the price and price changes of their own tokens like BNB and perhaps even BUSD(to prevent depegs/stifle stablecoin competition). On this point while anecdotal, I visit CMC a lot and have noticed BNB’s price often seems *slightly* higher than on other exchanges & aggregators as well as BNB almost always perform better than other stablecoins tho this *could* be coincidental.
What also stops them from manipulating tokens of other competing firms/projects. They also rank all tokens, so why not manipulate that the way the exchange rankings are manipulated. We have all seen that it doesn’t even take much, just a nudge in the right direction to cause a complete market collapse or even a full-on market pump, even if it is based on false or shaky information. We know that Binance now owns the largest reserves of BTC, so what stops them from manipulating that, to maybe cause a pump and then sell some reserves for profit.
I can go on and on with this but I hope by now we get the point.
Tldr: don’t trust Coinmarketcap data as it is some of it is certainly manipulated by Binance if not much of it.Thursday, November 24th, 2022 at 15:09 #410025sjejsb
CZ doing what he doesThursday, November 24th, 2022 at 15:09 #410034scoobysi
I trust them more now than i did before when they were run by maxis and arguably caused the 2018 bear market by removing korean prices with no warning to fuck the xrp pumping priceThursday, November 24th, 2022 at 15:09 #410033letsgetyoustarted
Yo this guy is the final boss lmao. I can only imagine what has happened behind closed doorsThursday, November 24th, 2022 at 15:09 #410032kirtash93
Binance owns CMC so…Thursday, November 24th, 2022 at 15:09 #410031HANDSOMEHISOKA
>SoMEhOw, a month after the deal in May, CMC was ranked first after instituting the same “Web Traffic Score”.
CMC said “I swear to my momma” so they couldn’t be lyingThursday, November 24th, 2022 at 15:09 #410030GeneralNichi
Totally agree with the CoinMarketCap thing.
But DYOR is not always enough. Didn’t help with FTX either…Thursday, November 24th, 2022 at 15:09 #410029TruthSeeekeer
CZ wants all the data.
He’s winning so farThursday, November 24th, 2022 at 15:09 #410028il_duomino
Data aggregators should be unbiased and it can no longer be said of coinmarktetcap that they are indeed unbiased. I’ve made a post about this some time ago, about huge differences between aggregators and one of the problems there could have been aggregator ownership.
Also, just as a sidenote…
I love that this subreddit has seen a huge influx of helpful and genuine posts like this. It’s super comforting to know that the bullrun toxicity leaves this place once we’re returning to marker normality.Thursday, November 24th, 2022 at 15:09 #410027BlubberWall
I haven’t trusted CMC since they screwed around with XRP’s market cap during 2018. Arbitrarily decided to stop counting Korean exchanges, wanted to drive down XRP for still unknown reasonsThursday, November 24th, 2022 at 15:09 #410026AnusWithEbola
CMC Kraken #3
Coingecko Kraken #14
O.oThursday, November 24th, 2022 at 15:09 #410024ghochumal
Coingecko has better interface imo and is more accurateThursday, November 24th, 2022 at 15:09 #410023126270
Real hodlers don’t look at chartsThursday, November 24th, 2022 at 15:09 #410022inadyttap
so whats a better alternative?Thursday, November 24th, 2022 at 15:09 #410021MaeronTargaryen
Yeah it’s undoubtedly biaised.
Binance takes too much space. Massive exchange, delisting stables to promote their own, bought one of the main comparator, now they want to make hardware wallets, they’ll start making phones soon at this rateThursday, November 24th, 2022 at 15:09 #410020CurrentCreative596
Coingecko all the wayThursday, November 24th, 2022 at 15:09 #410019002timmy
TL;DR- Don’t trust BinanceThursday, November 24th, 2022 at 15:09 #410018Krikke84
Coingecko better choice.Thursday, November 24th, 2022 at 15:09 #410017CreepToeCurrentSea
never used coinmarketcap, only use coingecko for life.Thursday, November 24th, 2022 at 15:09 #410016Setyman
Yes, CMC has manipulated XRP numbers many times, just to name one example.
Coingecko is a better, unbiased and cuter alternative.
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