Ergo, a well-known decentralized finance (DeFi) entity, has voiced against the reportedly high fees of CoinMarketCap. The company stated that the crypto aggregating platform pushes for the update of the Ergo coin’s circulating supply while its data verification procedure is complicated. In addition to this, Ergo drew a comparison with another prominent crypto aggregator forum CoinGecko.
DeFi Company Ergo Speaks against the Reported Data Verification Procedure of CoinMarketCap
As per the accuser, the procedure that CoinGecko implements is not as complex as CoinMarketCap’s. While keeping this in view, CoinMarketCap requested Ergo to make a post on social media. As per the company, this would permit CMC to verify that the requested data alterations have been delivered on the website of the project. The respective post would require containing the ticket number of CMC.
CMC informed Ergo that it required the data for invoicing Ergo in the case of the requested update. An effective validation would attract up to a $5,000 fee before the update of the circulating supply of CMC. According to Ergo, the huge fees could dishearten the steady data updating. In turn, this could signify that the majority of the information hosted by CMC is irrelevant.
An Ergo Spokesperson Points out Some Apprehensions in This Respect
An Ergo spokesperson took to X to comment on this development. The spokesperson noted that a question arises regarding the overall data on CMC. The question clarifies if CMC has not synchronized that data concerning the projects that decline to recompense such hostage fees. CMC is a platform that emerged back in the year 2013. A programmer from New York is reportedly responsible for developing the respective project.
The platform provides crypto metrics such as market capitalization, trade volume, and prices. The well-known crypto exchange named Binance acquired the respective platform back in the year 2020. At that time, the crypto exchange recompensed the charges of nearly $400M.A listing on the company can indicate the difference that lies between the failures and successes of minor altcoins. Several parties have criticized CMC for its supposed opaque criteria for listing.
The Ambiguous Listing Criteria of CMC Witnesses Huge Criticism
Apart from that, they have also condemned CMC’s outsized role related to its connections to exchanges and retail trading. CMC rival CoinGecko was founded a year later and it asserts to independently aggregate and source crypto data. Moreover, it obtains a fee to enable an ad-free experience of trading. The website asserts its autonomous app programming interface and autonomous aggregation are superior to the free-API exchanges.
The reason behind this is that, even in the case of validation, the price of an asset from the exchange will just signify the activity. As this brings to the front, only the order book of an exchange will signify the activity. Up till now, CMC has not responded to the inquiry of Ergo.