If you’re involved in the cryptocurrency world, you’ve likely heard of CoinMarketCap (CMC), the go-to site for tracking prices and market caps of thousands of crypto assets. But what you may not know is that CMC has a dirty secret – CoinMarketCap manipulating rankings to benefit Binance Token (BNB)🤷.
As if the cryptocurrency world wasn’t complicated enough, now we have to deal with ranking manipulation. But before you panic and sell all your crypto, let’s take a closer look at what’s going on.
😡 “CoinMarketCap’s dirty secret of manipulating rankings to benefit @binance!”
Once again, #CoinMarketCap surprises us with its transparency and honesty 🤣
Let’s see how @HEXcrypto was affected by this manipulation and why you can be the next one.
— Mobula (@MobulaFi) April 2, 2023
The History of CMC’s Manipulation
In May 2020, CMC changed their ranking methodology to prioritize web traffic, a metric that put Binance at the top spot. This move was seen as a blatant attempt to favor Binance over other exchanges.
But it’s not just the exchanges that are affected by CMC’s manipulation. Crypto assets are also at risk. In September 2021, a group of HEX investors launched a class action against CMC for ranking manipulation.
It’s not just the exchanges that are affected by CMC’s manipulation.
— Mobula (@MobulaFi) April 2, 2023
HEX’s Unfortunate Experience
HEX was the best-performing crypto of 2020, but despite its success, CMC locked HEX’s ranking at #201 and refused to adjust it based on its performance. This has caused HEX to trade at lower prices than it would have if its ranking had not been locked.
What’s even more suspicious is that CMC verified HEX’s circulating supply and market cap, which should have placed HEX at rank 6. Instead, HEX was ranked on the third page of results at #201. This has artificially increased the value of cryptocurrencies ranked above HEX, including those issued by Binance.
Why Binance and HEX Don’t Mix
One possible reason for Binance’s actions towards HEX is its staking system. This system is viewed as a threat to Binance because it does not promote active trading, which goes against Binance’s business model.
So, in short, Binance has an incentive to keep HEX’s ranking low to prevent it from gaining too much attention and potentially disrupting their business. And CMC seems to be complicit in this scheme.
Why You Should Care
You may be thinking, “Why should I care if Binance benefits from ranking manipulation?” Well, for one, it undermines the trust and transparency that should be at the core of the cryptocurrency world.
If we can’t trust the data we’re getting from CMC, how can we make informed decisions about investing in crypto assets? And if we can’t trust CMC, what other crypto data platforms are also manipulating rankings to benefit certain parties?
What You Can Do About CoinMarketCap Manipulating Rankings
While we can’t control CMC’s actions, we can take steps to protect ourselves from ranking manipulation. One option is to use alternative crypto data platforms that prioritize transparency and accuracy.
One such platform is http://Mobula.fi, which conducts a thorough verification process for every new project that is listed on the platform. The data is sourced directly on-chain, and all the tools for managing your crypto assets are transparent and built on mutual trust.
And the best part? HEX is ranked at the correct place on Mobula.fi – fifth place. So if you’re looking for a crypto aggregator you can trust, give Mobula.fi a try.
CMC’s ranking manipulation to benefit Binance Token is a dirty secret that has far-reaching consequences for the cryptocurrency world. It undermines trust and transparency and puts investors at risk.
But we can take steps to protect ourselves by using alternative crypto data platforms like Mobula.fi that prioritize accuracy and transparency. So let’s stay vigilant and make informed decisions about our crypto investments.
(CoinMarketCap Manipulating Rankings)