Topic: Coinmarketcap and others - total bullcrap (Read 129 times)
Coinmarketcap prices are always slightly higher than the exchanges like bittrex and binance say like 10% higher and the marketcap will also be higher so this is not at all the exact method to find marketcap. It may very a little but the fact is 10℅ increase coupled with millions of coins is equal to a huge marketcap change.
Been into crypto for couple of months now but it was just two days ago I got interested about market capitalization of coins in CMC. Was shocked that XRP pushed down my trusted ETH to second place. I am not really knowledgeable when it comes to coin market cap so I doesn't really care even if XRP tops BTC soon since I am sure sooner or later it'll find its right place in the market.
On Septemper 1 the marketcap was
Bitcoin $ 2,693,687,596
Ethereum $ 554,484,635
Ripple $ 327,243,422
Litecoin $ 252,960,022
Etherum C $ 53,581,348
Monero $ 50,336,321
Dash $ 23,168,271
Nem $ 16,826,997
Dogecoin $ 111,679,987
Namecoin $ 8,648,046
Coinmarketcap is just measuring the size of madness in the world of crypto - so many coin's capitalization are just fantasy numbers.
Indicator you suggested is good, but it can be even better if combined with average transaction value. It can help differentiate real growth from pump by big traders.
But why does it matter how the metric is achieved? If it is faulty it is clearly faulty for all the coins in not just the top ones. I do think there can be a better way to assess coins but this is the method we have. It may be a bit mad and barbaric but it is uniform throughout the market meaning no coin gets unfair treatment or preferential treatment.
There is no way that something like verge is worth more then 2 billion dollars so i agree with you that coinmarketcap is a pure bs,or that all that dollar value on cmc has a real coverage in real $.Problem is that people dont think about this,just imagine if we all try to sell our crypto funds for $ and see if we even manage to get 10 billion $ all combined
You know, to be completely honest I've never looked at it quite like that. Though, I've always agreed the market cap didn't really seem to be as important as everyone tries to say. I remember hearing people scream that Iota would probably never break $1 because of their high coin cap. We see that's just completely not true.
I do not mean the site itself but the term coin market capitalization
Things like IOTA or XRP clearly demonstrate the bullshitness of these rankings
BULLCRAP!!!
I could issue 1000000000000000000000000 cripple tokens (CRP) and sell one to a friend, for 1$, on some exotic marketplace
Then I would be 1st on coinmarketcap with 1000000000000000000000000$ market cap (and low volume)
Maybe it would require a bot, to buy and sell from my friend alot, so I get a minimum volume
But the real value of CRP is 1$, not 1000000000000000000000000$
The makers of these sites need to change their valuation, or soon XRP will be number 1, and when the bubble bursts everyone loses their money. Lawmakers will trigger the end of crypto.
I suggest an algorithm that checks the orderbooks of the markets of each coin, then calculates:
Volume Vx = cumulative worldwide Volume required to drop price by x% (for example, 10%)
Price Py = Price when Vx has been traded
Then Real World market cap RWMCx = Vx * Py
For example, if Ripple drops from 1.40 to 1.26, how many orders would be filled? Maybe 1000 000 XRP?
Then Real World market cap RWMC10 is 1000 000 x 1.26
drop to 1.12 (20%) maybe 1000 000 XRP
Then RWMC20 is 2000 000 x 1.12
and so on
This would really let the air out of some top 10 coins LOLOLOL
Things like IOTA or XRP clearly demonstrate the bullshitness of these rankings
BULLCRAP!!!
I could issue 1000000000000000000000000 cripple tokens (CRP) and sell one to a friend, for 1$, on some exotic marketplace
Then I would be 1st on coinmarketcap with 1000000000000000000000000$ market cap (and low volume)
Maybe it would require a bot, to buy and sell from my friend alot, so I get a minimum volume
But the real value of CRP is 1$, not 1000000000000000000000000$
The makers of these sites need to change their valuation, or soon XRP will be number 1, and when the bubble bursts everyone loses their money. Lawmakers will trigger the end of crypto.
I suggest an algorithm that checks the orderbooks of the markets of each coin, then calculates:
Volume Vx = cumulative worldwide Volume required to drop price by x% (for example, 10%)
Price Py = Price when Vx has been traded
Then Real World market cap RWMCx = Vx * Py
For example, if Ripple drops from 1.40 to 1.26, how many orders would be filled? Maybe 1000 000 XRP?
Then Real World market cap RWMC10 is 1000 000 x 1.26
drop to 1.12 (20%) maybe 1000 000 XRP
Then RWMC20 is 2000 000 x 1.12
and so on
This would really let the air out of some top 10 coins LOLOLOL
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