Key Takeaways:
- CoinMarketCap has demanded money from Ergo to provide correct info about the ERG token.
- Binance owns the crypto data website.
- The platform asked Ergo for $ 5,000 to rectify the factual mistake about circulating supply.
YEREVAN (CoinChapter.com) — Data on the popular cryptocurrency data site CoinMarketCap (CMC) may be outdated. The platform is one of the most popular go-to places for information. But they may be giving readers wrong information unless crypto companies pay a large sum, according to Ergo (ERG).
CoinMarketCap wants you to pay to right their wrong
In a recent post on social media platform X (formerly Twitter), smart contract platform Ergo made a shocking revelation. After finding discrepancies on the site about their project over a year ago, they approached CoinMarketCap to rectify it.
The wrong information was about the circulating supply of the ERG token.
However, instead of correcting the information, the platform continued to maintain wrong data about ERG. Then, when they finally agreed to comply with the request, it was with a caveat. Ergo had to foot a $5000 bill for it.
The excessive demand, which looks more like an extortion than a service charge, came as a shock to Ergo developers.
They had previously put in a similar request for access to CoinGecko, another crypto data platform. The latter promptly corrected the information. But CMC considered this a big deal that required a huge payment.
The total market supply of the ERG token is around 71 million, according to CoinGecko. However, CoinMarketCap shows this figure to be around 59 million.
Some credit users find it amusing that the website charges to provide correct information.
“You would think that it would be in the best interests of a company whose job it is to provide an accurate coin market cap, to provide an accurate coin market cap. That’s like their main job,”
the user wrote.
Is the Binance-owned website no longer trustworthy?
The idea that CoinMarketCap fails to update the data it provides is problematic. Considering many projects may not agree to pay, is the information investors receive even accurate?
This should not be taken lightly, as investors rely on their data when investing.
“It begs the question…how much overall data is out of sync on CMC for projects that refuse to pay these hostage fees? Data integrity issues are not a good look for CMC considering accuracy is their product,”
Ergo asked in their post.
Unsurprisingly, many investors agree with this sentiment.
As the incident became public, several users pointed out that the problem may lie with the website’s owner.
In April 2020, Binance acquired CoinMarketCap (CMC) for an undisclosed price. At the time, Binance CEO Changpeng “CZ” Zhao called the purchase “by far the largest” the company had done, according to a CoinDesk report.
Now, users claim that CZ is “shaking down” crypto firms to collect money for the several court cases he has against him. Authorities in the US have recently ramped up their crackdown on Binance.
“I mean, coinmarketcap is owned by Binance, what did you expect?”
one user asked.
Now, people are encouraging investors to boycott CoinMarketCap altogether.
As the Reddit user pointed out, CoinMarketCap should provide correct data. That is the only reason the website exists. Putting up incorrect information and then charging money to correct it is one of the most bizarre things out there.
