Cryptocurrency investors depend on crypto data providers like CoinMarketCap and CoinGecko for accurate information about the price and market performance of crypto assets. However, in recent times, the data being reported by these aggregators is inconsistent, which has led to several complaints from users.
According to data provided by the three most popular crypto data providers, CoinMarketCap (CMC), CoinGecko, and Messari, the third-largest cryptocurrency by market cap, stablecoin Tether (USDT) has more than a billion-dollar difference on these platforms.
Even though the stablecoin is ranked number three on all platforms, there is a massive discrepancy of more than $1 billion between Messari and CMC market cap for the token.
The unanswered question now is why?
Rising data discrepancies
These platforms have been blamed for inflating or deflating the data of cryptocurrencies in order to lure investors into making investment decisions.
Several crypto enthusiasts have weighed into these concerns as they believe these discrepancies have hindered the cryptocurrency space from reaching its full potential.
If the market cap for a supposed “centralized” cryptocurrency like the USDT, which is pegged to the U.S. dollars, could have such discrepancy in its data on popular crypto data providers, what would happen to other digital currencies like Bitcoin (BTC), Ether (ETH), and others?
However, this issue has seen notable firms launch enhanced crypto liquidity aggregators to address these concerns and provide similar trading experience to traders regardless of the platform they choose to use.
This is not the first time that crypto data providers would be making a mistake in publishing inaccurate data for notable cryptocurrencies.
According to a report on Coinfomania in April, the Binance-acquired cryptocurrency platform, CMC, was alleged to have provided incorrect information about USDT.