UPDATE (8th January 1:20 p.m. EST): CoinMarketCap has stated that it excluded the three Korean exchanges from their averages “due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”
This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity. We are working on better tools to provide users with the averages that are most relevant to them.
— CoinMarketCap (@CoinMarketCap) January 8, 2018
CoinMarketCap, perhaps the go-to source for cryptocurrency market data, has sparked an uproar after it moved to exclude South Korean exchanges from its price average calculations.
The unannounced move to remove data from Bithumb, Coinone and Korbit from its average calculations sparked confusion given that its front-page suggests a broad decline in the cryptocurrency market, including what appeared to be a near-30% fall in the price of XRP.
The overall market cap of the market – one measure by which traders assess the ecosystem – dropped sharply once the change went into effect, which appears to have taken place just before 5 a.m. UTC.
That shift can be notably seen in the 24-hour price chart for bitcoin cash, given that the three Korean exchanges are among the top-10 by trade volume for the cryptocurrency.
The exact reason for pulling the data isn’t clear at this time, though as of press time Bithumb is offline because of what the exchange says is a server check. And prices on those exchanges have consistently traded far above the rest of the market, such as the more than $5,000 spread spread compared to markets like Bitfinex and GDAX.
Further, commentators like Ripple chief cryptographer David Schwartz, who tweeted out about the move, said the newly-reflected price is “more accurate and meaningful.”
That sentiment hasn’t spared CoinMarketCap from the crypto-community’s ire, however…