Ergo claims that CoinMarketCap is exploitative since it charges to fix mistakes in the data it publishes.
The distributed ledger technology that underpins cryptocurrencies paves the way for transparent record-keeping of all transactions, deposits, and other user activity. This is a huge benefit in comparison to traditional markets, where information is typically hidden or kept in separate silos. A new breed of “search engines” for crypto data has arisen to combine blockchain activity into easily consumable market insights and analytics.
CoinMarketCap is the most frequented data aggregator site, increasing website traffic that towers above the competitors. Recent criticism of CoinMarketCap has come from the smart contract platform Ergo, which exposed the company’s questionable data practices, including its policy of collecting fees to alter erroneous data.
Recently, Ergo has been vocal about their dissatisfaction with CoinMarketCap’s data policy procedures. According to Ergo, the company spent over a year attempting to get CoinMarketCap update their data on the number of ERG tokens in circulation. Market cap and token rankings are two factors that are affected by the total quantity in circulation.
CoinMarketCap demanded that $5,000 be paid in addition to the completion of verification information in order to implement the adjustment. Ergo termed the payment price equivalent to “hostage fees” while doubting the authenticity of CoinMarketCap statistics based on enterprises refusing to capitulate on exploitative charges.
CoinMarketCap positions itself as a neutral data aggregator for the blockchain. Data rectification fees, however, appear at conflict with this function. Ergo, on the other hand, said that it had no problems with CoinGecko, a competitor aggregator.
Ergo said that CoinGecko provides an accurate token circulating supply with an API connection alone. The differences in business structures and incentives between the two data aggregator platforms are highlighted.
However, users are divided on which platform is best. A software engineer who posted on Reddit about the subject summed up his feelings by saying, “They’re shockingly similar,” before going on to say that he prefers CoinMarketCap because of its sleeker design.
“Yes, I’m aware that there are applications that do similar functions, but most of the time the interface and more complex features set them apart. The Reddit user felt that the applications were essentially the same under various graphics.”
The post’s commenters were split on the topic, although they did seem to agree that CoinGecko is more reliable. Additionally, CoinGecko’s independent status was stated. Following Binance’s 2020 purchase of CoinMarketCap, CoinGecko co-founder Bobby Ong stressed the need of maintaining “neutrality in the data space.”
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