'Honest Coinmarketcap' Claims Crypto Trading Volumes Are Grossly Exaggerated

Thursday, 17/05/2018 | 09:54 GMT by Rachel McIntosh
  • A man has created his own version of Coinmarketcap to reveal data discrepancies.
'Honest Coinmarketcap' Claims Crypto Trading Volumes Are Grossly Exaggerated

Chances are that if you’ve ever googled the words “what is the price of Bitcoin ?” that you’ve come across Coinmarketcap. Nearly everyone involved in the cryptosphere coins on the simply-designed website for reliable data on coin valuations, trading volumes, and, well, market caps.

However, not everyone seems to believe that CoinMarketCap is as reliable as it has been presented to be. A man named Andrew Renhack has developed an alternative to good ol’ CMC, spitefully dubbed “Honest Coinmarketcap.”

According to a report from Bitcoin.com, Coinmarketcap has come under criticism “due to the way it pulls its data from exchanges, exacerbated by the way these platforms record trading activity.” Rennhack’s platform is very basic--a simple page on Google Sheets--and it’s not entirely clear where he’s gathering his data from, either.

However, if the data that Rennhack has presented can be believed, then it seems that trading volumes on CoinMarketCap may have been tremendously overstated.

Trading Volumes May be Exaggerated by As Much as 80 Percent

The second tab of the “Honest Coinmarketcap” spreadsheet, which compares fiat volume with Coinmarketcap’s listed volume, claims that Bitcoin’s actual 24-hour trading volume is $1,508,351,500.00, while Coinmarketcap lists it as $8,281,980,000.00, a discrepancy of roughly 80 percent. XRP and BCH trading volumes have reportedly been exaggerated by roughly 40 and 70 percent, respectively.

While it’s not clear if the Honest CMC data can be trusted, CoinDesk reported that Rennhack’s findings fall in line with a past report that revealed that trading volume on some exchanges may have been overinflated by as much as 95 percent.

Still, there are plenty of skeptics:

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Chances are that if you’ve ever googled the words “what is the price of Bitcoin ?” that you’ve come across Coinmarketcap. Nearly everyone involved in the cryptosphere coins on the simply-designed website for reliable data on coin valuations, trading volumes, and, well, market caps.

However, not everyone seems to believe that CoinMarketCap is as reliable as it has been presented to be. A man named Andrew Renhack has developed an alternative to good ol’ CMC, spitefully dubbed “Honest Coinmarketcap.”

According to a report from Bitcoin.com, Coinmarketcap has come under criticism “due to the way it pulls its data from exchanges, exacerbated by the way these platforms record trading activity.” Rennhack’s platform is very basic--a simple page on Google Sheets--and it’s not entirely clear where he’s gathering his data from, either.

However, if the data that Rennhack has presented can be believed, then it seems that trading volumes on CoinMarketCap may have been tremendously overstated.

Trading Volumes May be Exaggerated by As Much as 80 Percent

The second tab of the “Honest Coinmarketcap” spreadsheet, which compares fiat volume with Coinmarketcap’s listed volume, claims that Bitcoin’s actual 24-hour trading volume is $1,508,351,500.00, while Coinmarketcap lists it as $8,281,980,000.00, a discrepancy of roughly 80 percent. XRP and BCH trading volumes have reportedly been exaggerated by roughly 40 and 70 percent, respectively.

While it’s not clear if the Honest CMC data can be trusted, CoinDesk reported that Rennhack’s findings fall in line with a past report that revealed that trading volume on some exchanges may have been overinflated by as much as 95 percent.

Still, there are plenty of skeptics:

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About the Author: Rachel McIntosh
Rachel McIntosh
  • 1509 Articles
  • 52 Followers
About the Author: Rachel McIntosh
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
  • 1509 Articles
  • 52 Followers

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