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.”
1/ I spent the afternoon writing a script I call Honest Coinmarketcap. It displays trading volume by coin by USD pairs only(bitfinex excluded as its USDT). Attached are coins ranked by marketcap, listed volume, true volume pic.twitter.com/x7MEy1dD2i
— Andrew Rennhack (@andr3w321) May 12, 2018
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: