Here’s Why You Saw Your Crypto Portfolio Rise by 1000x
Many traders enjoyed their Trillionaire status amid the leading Crypto data aggregator, CoinMarketCap’s exclusive bug. Yesterday evening, CoinMarketCap glitched and displayed bizarre prices, sequences, market capitalisations and much more. However, the data aggregator giant acknowledged the bug via its official Twitter handle, further noting that they had fixed it. Nevertheless, that was five hours ago and the global crypto market cap still continues to show a 10890 percent hike in past 24 hours.
Following the irregularities we observed on our platform this afternoon, despite the issue having been fixed, we will be rebooting our servers as a final step in accordance with our internal remediation plan. Apologies for the inconvenience.— CoinMarketCap (@CoinMarketCap) December 15, 2021
According to CoinMarketCap statistics, which are used across the world, the OG Bitcoin’s dominance is currently just 0.48%, i.e., standing at a decrease of 41.13% over the day. However, according to the same website, Bitcoin’s price had increased, trading at $67,921.4, at the time of reporting.
Hysterically Inflated Crypto Prices
Although, it is not merely retail traders that will be affected by this bug. Several crypto exchange platforms, including Coinbase, also use CoinMarketCap as their main data source, driving the market into a multi-billion dollar domino effect. The crypto exchange giant, Coinbase noted that its platform was also dragged into CoinMarketCap’s mess, leading the platform into a high trading activity period, triggered by exceptionally inflated prices.
According to Bloomberg, Coinbase even claimed that some of its users were seeing inflated values for “non-tradable” crypto assets which later turned out to be a display issue. Yet, it led to excessive social media traction as customers were circulating screen shots of the gains and their suddenly increased balances online.
“Everyone tunes into those disruptions, so to the extent they all use the same data source, and so when there’s a problem and prices are really off, that can create herd behavior to drive investment decisions,” Bloomberg quoted Rosario Ingargiola, the founder of Bosonic, a platform for crypto clearing and settlement.
Many crypto enthusiasts also took to Twitter addressing the issue of increased trading bots activity in lieu of the glitch. The hiked prices on CoinMarketCap were caught by these trading bots and the market was sent into aggro buying on “market movement”, according to the crypto community’s analysis.
Kind of interesting that this rally started exactly at the same time as Coinmarketcap having a pricing bug (roughly 4:25-4:35pm ET)Wonder how many bots are using their API and just started aggro buying on "market movement". pic.twitter.com/HMpJME71fS— Adam Cochran (@adamscochran) December 14, 2021