Why You Should Never Just Look At Market Caps
This morning it looked like a sea of red on good old https://coinmarketcap.com and still continues to look at way. However as news came out today coin market cap actually removed exchanges from their listings which drastically lowered everything and screwed the results heavy causing a bit of a unannounced panic.
Coin Market Cap removed South Korean exchange from the price average calculations unannounced from exchanges Bithumb, Coinone and Korbit. This they say was a result of those exchange always posting higher then averages compared to other exchanges and markets.
This move showed an overall sea of red on coin market cap and still does at this time because of this unannounced news which makes it look bad. However when you dig into it more you will see prices have not adjusted all that much. You can view this quick adjustment on just about any of the top cryptos on coin market cap by looking at today's values such in the example below for Ripple.
Coin market cap has stated this move is to better ensure accurate measurements of value of cryptos as these exchanges where trading at near $1,000 - $5,000 swings higher then the averages of every other exchange.
A right move? Maybe but only time will tell plus it could have been better handled. Live and learn right? Don't always judge a book by its cover be sure to dive deep and find what is causing it as your end results might be false otherwise.
Coin market cap shouldn’t care about “big swings”, as the REALITY is that coins still go for wickedly higher and lower than market prices. That’s just how it is.
Good to know. Thanks for the update on coinmarketcap numbers.
Guess that's why CMC's averages always appeared higher than the exchanges I typically trade on. Guess it was a sellers market on those Korean exchanges.
Your post is great my friend
As I always say technical analysis has to be done with other research otherwise it's just useless.
They really should have announced it before they did it. Although I think that this is a good decision, I was really stunned when I opened coinmarketcap.
Totally agree they should have, but I am sure they didn't even think about it being a new type of company and new to all of this. Live and learn I guess
I saw this on BBG News and was not pleased as it made great headlines to slam cryptos yet again. That said, as a purists from my sales and trading days, I prefer a lateral comparison especially when looking at pricing and market caps. Thank you for sharing.
what a news!
I heard about this happening earlier this morning. Giving some folks mini-heartattacks, but I don't think I was affected.
I was wondering why this happened, and now it all makes sense. I agree that it seems like way too many "judge the book by its cover" as you said when it comes to the market.