Andrew Rennhack: Coinmarketcap May Distort Data Up to 90%
May 17, 2018
About $7 billion worth BTC have been sold in the world over the last 24 hours. At least, as data provided by crypto information aggregator Coinmarketcap shows. Yet not all agree on the figures claimed. “Honest Coinmarketcap” is a new project aimed at providing accurate data and eliminating overstated trade volumes.
In attempt to get actual figures of global volume of cryptocurrencies Andrew Rennhack founded an alternative to CMC named “Honest Coinmarketcap”. The project does not take account of many variables that may affect coin trade volume. But according to its data, cryptocurrency volumes may be overstated dramatically.
“Honest Coinmarketcap” compares given and real trade volume for popular cryptocurrencies. Reportedly, volumes of BTC and ETH are 80% higher, while data on XRP and BCH are wrenched by 43% and 70% respectively. Most of other coins in the top-20 by market cap are overestimated from 40% to 90%.
Although data obtained by “Honest Coinmarketcap” are not to be accepted at face value, its conclusions coincide with those from previous reports that stated, trade volume at some exchanges was overstated by 95%.