Is Coinmarketcap a scam/fraud?

[arnsarns]

As it was already said coinmarketcap could not cause this dump by its single action. If  you talk about scaming then imho it is a bit dishonest to calculate the average price index with the exchanges that could not be publicly accessed, that make market less healthy. Thanks got they were not calculating the rates fron nigerian or venezuelan exchanges that sometimes can be even twice biger than the ones from the US and EU. CMC should have done it a long time ago.

I have no doubt that you are right but that's not the point here. The point is that if there is any change in the calculation they should inform people beforehand so they don't panic and wales collect their money. There is no possible rational reason for not informing people beforehand. Well except scamming them.

[SOHAIB BAIG]

in my opinion coinmarketcap is not a scam it shows average price of alts's

[spring07]

In my honest opinion, i think it is wrong to use the word SCAM in this situation. You might need to retract the word. I do not also agree with your point on manipulation. CMC reflect to an extent the true position of prices which of course can dip or rise as a result of activities and news surrounding such coins.
However i would like to say, CMC acted unprofessionally to have removed the korean exchange without any info to that effect.
I believe they can do better information management.

[Beerwizzard]

As it was already said coinmarketcap could not cause this dump by its single action. If  you talk about scaming then imho it is a bit dishonest to calculate the average price index with the exchanges that could not be publicly accessed, that make market less healthy. Thanks got they were not calculating the rates fron nigerian or venezuelan exchanges that sometimes can be even twice biger than the ones from the US and EU. CMC should have done it a long time ago.

I have no doubt that you are right but that's not the point here. The point is that if there is any change in the calculation they should inform people beforehand so they don't panic and wales collect their money. There is no possible rational reason for not informing people beforehand. Well except scamming them.

Ofcourse a small notification on their website could be a sign of good will without taking a significant amount of the ad space. But people should understand  that the BTC price is a bit abstract. If you see the average price ( on CMC, preev or wherever you are getting the information) it doesn't mean that you will buy BTC for this price. Every user (even a newb) should clearly understand it and the main thing on CMC is not the average index but the page with diferent markets and their data.

[arnsarns]

The thing that makes me worried is the influence that CMC has. I don't think it's healthy for the market that one website has such a power. At the end of the day what they do is taking average on some numbers. The whole website can be done by a first year student. They are not adding any value an yet, they have so much power over the prices.

[jim_crypto]

You think Coinmarketcap.com caused this dip?

Why do you think that?

It is easy to see the drop in their website which happened in a matter of a second. The drops are more gradual in exchanges. Also, people are talking about it everywhere:

https://thenextweb.com/hardfork/2018/01/08/ripple-market-price-korean-exchange/
https://thebitcoin.pub/t/chaos-coinmarketcap-removing-korean-exchanges-in-coinprice/22179
https://twitter.com/JoelKatz/status/950242696848842752
https://www.reddit.com/r/btc/comments/7ownsm/coinmarketcapcom_no_longer_counting_korean/

You're giving too much credit to that website, it's just metrics.

Much bigger things are happening:

https://news.vice.com/en_us/article/59w5eb/china-is-about-to-kill-nearly-all-bitcoin-mining-operations-in-the-world

Yes you are right, I think that the news about china make the people go on panic buying and not the CMC. I also see this news 2hours ago but I'm glad the price of the bitcoin and other alt's are already going back to it's original price.

You are right, news like that are in the nature of the market. But even of CMC cause 1% of a change here I like responsible and wanna talk about it so the new people know that CMC isn't the best source to check the prices.

There is no doubt that it had an effect, whenever you are digesting material on the internet you have to be cautious / selective in what you believe, however when you are using figures from a supposedly respected authority as coinmarket cap people tend to believe what is in front of them - to communicate retrospectively that there was a change in the calculating method is in my mind underhand & its no surprise the community are sceptical of their intentions... 

[cryptopuma]

Manipulation is different from scamming people but its relatively to each other,it has big effect in the mindset of traders so its a bad thing to that thing.

[CryptoIntegrity]

Alot of things caused the dip. I don't think they were the one

[thurlowweed]

You think Coinmarketcap.com caused this dip?

Why do you think that?

It is easy to see the drop in their website which happened in a matter of a second. The drops are more gradual in exchanges. Also, people are talking about it everywhere:

https://thenextweb.com/hardfork/2018/01/08/ripple-market-price-korean-exchange/
https://thebitcoin.pub/t/chaos-coinmarketcap-removing-korean-exchanges-in-coinprice/22179
https://twitter.com/JoelKatz/status/950242696848842752
https://www.reddit.com/r/btc/comments/7ownsm/coinmarketcapcom_no_longer_counting_korean/

You're giving too much credit to that website, it's just metrics.

Much bigger things are happening:

https://news.vice.com/en_us/article/59w5eb/china-is-about-to-kill-nearly-all-bitcoin-mining-operations-in-the-world

I saw that there was a lot going on with that and figured it was the reason for the price drop.  I'm new here and still pretty new with crypto trading and investing, but I've been in business for many years as well as Forex trading.  With China shutting the mining operations down wouldn't that basically mean the mining industry would have to be rebuilt? New pools, new companies, etc?

[arnsarns]

You think Coinmarketcap.com caused this dip?

Why do you think that?

It is easy to see the drop in their website which happened in a matter of a second. The drops are more gradual in exchanges. Also, people are talking about it everywhere:

https://thenextweb.com/hardfork/2018/01/08/ripple-market-price-korean-exchange/
https://thebitcoin.pub/t/chaos-coinmarketcap-removing-korean-exchanges-in-coinprice/22179
https://twitter.com/JoelKatz/status/950242696848842752
https://www.reddit.com/r/btc/comments/7ownsm/coinmarketcapcom_no_longer_counting_korean/

You're giving too much credit to that website, it's just metrics.

Much bigger things are happening:

https://news.vice.com/en_us/article/59w5eb/china-is-about-to-kill-nearly-all-bitcoin-mining-operations-in-the-world

I saw that there was a lot going on with that and figured it was the reason for the price drop.  I'm new here and still pretty new with crypto trading and investing, but I've been in business for many years as well as Forex trading.  With China shutting the mining operations down wouldn't that basically mean the mining industry would have to be rebuilt? New pools, new companies, etc?

I'm not sure, but I don't understand if China is hating on Bitcoin or they just want to regulate it? this has a big impact on the future of Cryptocurrency, maybe we should create a post on this and discuss it there

[digaran]

They show you that Bitcoin price is $5000 what would you do? you would go and open an exchange's site and sell whatever you have for $5000 even though people would pay you at least 3 times more? what ever coinmarketcap is showing you should not have any thing to do with your decision on trading.

[Oceat]

Why would you think that coinmarketcap is a fraud? All it did was to show you the results of all the coins that are legally released in ICOs and was put in the market of cryptocurrency. Maybe there's a glitch in it, i don't know what to call it but when you say coinmarketcap removed Korean exchanges maybe it is because it has nothing left in it and it has no value that's why they remove it automatically but such thing would not happen before. I wonder why they do that this leaves me wondering.

[Emilyp]

CMC is not any of the afo mentioned.  It's neither a scam nor a fraud.  Their actions weren't professional and that should be called out. They're not fraudulent,  they haven't been any funds mismanagement levied against them as they don't even manage anyone's funds. They haven't ran away with anyone's money as well. It was just an act of incompetence that they displayed.

[ThunderCatSteve]

I'm surprised that coinmarketcap alone can "manipulate" the market so easily and those that are new into crypto think that they have lost lots of money and to "cover the loss" they are forced to selll their coins which causes a dump and a perfect situation for big fishes to buy. This remembers me when a big fish dumped his coins until to 1 satoshi and then started buying from 1 satoshi and up making him a huge profit and making a panic to the public to sell their coins to cover the losses.

[bitcoinvestor]

What do you think scam? CMC inform the fake price? If that happens, It could be because it is cenralized algorithme. I think CMC is not scam, the price is live time, There is a little bit diferent in the exchangers. The price of exchanger is real and coinmarketcap collect information from many exchangers in one time.

[Hodll]

Most def not a scam you get quite a lot of info on coinmarketcap. If you check it properly it can actually educate you in terms of coins, Historical data , markets and circulating supply. It enables you to make good decisions if confused and you wanted to do market research or QA. It also lists new coins and links you to both the websites as well as whitepapers of various coins tech. It is dedefinately an eye opener in My opinion.

[Docbee]

Apparently they may do that in way to manipulate the market, we all quite know bad news causes panic and panic sell.

[Snarks]

If you are as influential as CMC and make a massive change to the way you calculate the average price without clearly announcing it on the frontpage then it's bordering on manipulation IMHO if not outright fraud. They could foresee the consequences and are probably trading upon those consequences.

[prehisto]

I believe that this was not and accident , how this big of a webpage could not think of possible impact of their actions? They used the situation.

Nevertheless I think that it should have been done because in the past days there was huge difference in prices and thus the average price was not showing the real situation.

[whofeelsitknowsit]

No.