iFinex Inc., the parent company behind Bitfinex and Tether, has been involved in a series of events over the past weeks that have appear to have negatively affects it reputation. Recently, CoinMarketCap (CMC) decided to remove Bitfinex’s prices from its market cap estimation.
Bitfinex is out of CoinMarketCap
On May 1st, CMC declared in a blog post the creation of Data Accountability & Transparency Alliance (DATA) in order to provide “greater transparency, accountability, and disclosure from projects in the crypto space.” The move came after a report published by TIE revealed that approximately 60% of the top 100 cryptocurrency exchanges were falsely reporting their volumes.
The crypto market data tracker site gave a 45-days grace period to exchanges so they could provide statistics regarding their live trading and order books data as a requirement to include their price on the site.
After the news broke that the New York Attorney Genereal had obtained a court order against its parent iFinex Inc. for presumably engaging in a cover-up to hide the apparent loss of $850 million, Tether (USDT) holders have been liquidating their tokens for other cryptocurrencies including Ethereum and Bitcoin to be able to move their money out of Bitfinex. This may have resulted in a spike in prices on the platform.
Since then Bitcoin has been trading at a $300 premium on Bitfinex and now CoinMarketCap has decided to exclude it from its market capitalization calculation. At the time of writing, one BTC is worth $5,986 on Bitfinex, while on Coinbase, Bitstamp and Binance, BTC is trading at around $5,636.
Although CMC has not released an official statement about it, at the beginning of the year it removed other companies in Bithump, Coinone, and Korbit, due to “the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”
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