Cryptocurrency market data provider CoinMarketCap has dropped Bitfinex’s Bitcoin trading prices from its weighted average calculation.
The decision was taken by CoinMarketCap.com amid the recent allegations made against the exchange by the New York Attorney General’s office for covering its losses using the cash reserves from Tether.
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“The price of any cryptocurrency is a volume-weighted average of market pair prices (1) for the cryptocurrency,” CoinMarketCap.com stated in its policy for including price data from an exchange. “Some prices are manually excluded from the average, denoted by an asterisk (*) on the markets tab if the price does not seem indicative of a free market price; for example, when an exchange disables withdrawals or deposits, or regulatory conditions make it impossible for anyone else outside of a certain geographical region to buy coins. Some prices are also automatically excluded when our algorithms detect that the reported price is a significant outlier when compared to other market pairs for the same cryptocurrency, denoted by three asterisks (***) on the markets tab.”
The crypto data platform, however, has not excluded the crypto trading volume coming from the exchange.
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Bitcoin has maintained an uptrend in the past week and is trading at $5,690, according to CoinMarketCap.com’s weighted data. The digital currency, however, is trading at a premium price of around $5,950 at Bitfinex.
The Hong Kong-based exchange is not the first of its kind to get excluded by the data aggregator as it has also excluded selected trading pairs of other major exchanges like OKEx and HitBTC. CoinMarketCap’s index also excludes XBT/USD pair from the crypto derivatives exchange BitMEX.
Meanwhile, reports surfaced that Bitfinex is considering to raise funds through a token sale to cover the losses from its frozen funds. Though the details of the sale are not disclosed yet, allegedly leaked reports shows that the exchange is planning to raise as much as $1 billion.