CoinMarketCap’s Controversy Makes XRP Community Complain Of Market Manipulation
The crypto market is simply full of people fighting each other all the time. That’s expected when you deal with money, though, as any action from anyone may lead you to lose many. Because of this, claims of market manipulation are so common these days.
Now, CoinMarketCap (CMC) is not considering all the XRP tokens held in escrows as part of the market cap and some XRP supporters are mad with this decision as they believe that CMC is simply not correct by making this decision and not including this XRP on the market cap.
XRP Is Set To Overtake Ethereum
While some may find that this discussion makes no sense as a person could think that there is not so much escrowed XRP that it would change so much, XRP is now behind Ethereum (ETH) and going up, so the money could make a big difference if you want XRP to become the second crypto by hard cap.
It is important to know that, in the market, these things are important. Your ranking may well affect your price which can make people lose or get money. Cory Johnson, Ripple’s Chief Marketing strategic, took his opportunity to claim that CMC did not calculate the XRP market cap correctly and that turned out to be a very popular declaration.
About half of the community agrees with the way that CMC defines the price and the market cap of XRP while the other half of the community affirms that this is simply not a good idea. According to them, BTC would also have its market cap severely reduced in this case because Craig Wright, for instance, holds 1.1 million BTC in an escrow service called Tulip-Trust and will be released only in 2020. However, this money is considered in the market cap.
While the market of XRP is worth $14.57 billion USD today without considering the escrowed money, it would, according to Yahoo Finance, be worth $36.17 billion USD if the money was counted.
Some vocal people from the XRP community like Tiffany Haydan and Dr. T have claimed that CMC is wrong, too, as their methodology is “wrong” because it is arbitrary and it should represent all projects better and be more standardized instead of creating “arbitrary norms”.
The main complaint is that the supply of BTC includes even some unrecoverable money and the balance of large shareholders. It was called an “ideological battle” that CMC is constantly losing. They also complain that CMC has excluded data from some Korean exchanges.
CMC explained that they stopped to take these exchanges into accounts because their prices were way off the chart and were a “limited arbitrage opportunity” that did not represent the market.
The company has even called out Ripple to request XRP to be counted in another way, but Ripple did not see to care very much. David Schwartz, the CTO of Ripple, doesn’t have “strong feeling either way”. He, unlike the supporters, seems to want to remain neutral in the issue, just affirmed that XRP is “penalized for its transparency”.
Some people, as always, called this a market manipulation and affirmed that the Securities and Exchange Commission (SEC) should be called because CMC has a bias against some tokens.