The troubled Bitfinex exchange keeps on going viral in many best cryptocurrency news sites and their crypto news sections. In the latest news, CoinMarketCap delists Bitfinex and its Bitcoin prices from its weighted average calculation.
The largest cryptocurrency market information generator now shows a single asterisk mark for Bitfinex’s price – when checking BTC/USD data – with the message at the bottom saying “Price excluded.” As CoinMarketCap delists Bitfinex and its BTC price information, Bitcoin is trading at the premium of over $300 on Bitfinex as compared to many other major exchanges.
The price difference of Bitcoin listed on Bitfinex and other platforms is big. However, that did not put a stop to everything and allowed CoinMarketCap to remove Bitfinex data. For all those of you who need an explanation behind the delisting of Bitfinex, CoinMarketCap has stated a methodological description on its website saying:
“The price of any cryptocurrency is a volume weighted average of market pair prices (1) for the cryptocurrency. … 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 fact that CoinMarketCap delists Bitfinex and its BTC price calculations come as Bitfinex continues to be full of controversy. Last month, the NY attorney general alleged that the exchange lost $850 million of corporate and client funds and subsequently used a loan from Tether’s reserves to cover the shortfall.
Later that week, Bitfinex claimed that the funds had been “seized” by various authorities and that they are working to retrieve the funds. Weeks later, we see that CoinMarketCap delists Bitfinex and its data which is a sign that nothing has improved.
As the latest cryptocurrency news predict, we could definitely see the Bitcoin prices coming back to CoinMarketCap soon. For that to happen, however, Bitfinex must stabilize.
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