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RE: What's wrong with Coinmarketcap.com ?
Hi guys, I think I noticed this problem on 21st of June with Ethereum. At 10 pm UT the price on CoinmarketCap.com and, exchanges (Polinex, Bittrex, Kraken) differed for 2 to 4 percent. Well price on Polinex was lower, so it made me happy but day after I realized that problem does exist and it would be better to change the source.
Since these exchanges are independent central services prices will differ. One coin that has messed up the aggregate price is Vericoin. This sucker is trading at 3x in a Chinese exchange compared to the Western counterparts. That's the biggest problem with the centralization of decentralized currency. Ironic, isn't it.
@cryptogirl1 i am sure that the reason behind that are the Chinese exchanges since crypto costs usually 10% more there.Using the weighted average formula your final $$ amount shown on Coinmarketcap.com is inflated if you use exchanges such as (Polinex, Bittrex, Kraken) since they are based in US and Europe, deflated if you use Chinese exchanges such as(OKCoin.cn,Coinone...)
For example bitcoin is at 2000$ on Poloniex and 2200$ on Coineone,the Poloniex market is 40% and the Chinese market is 60%, the price shown on Poloniex is 2000$40%+2200$60%= 2,120$.
2000$<2120$<2200$, it depends where you are looking from.
@charbelghossan, this explanation is really valuable for me. Thanks a lot. :)
anytime,always good to spread the knowledge.Interesting profile picture cryptooooo!