CoinMarketCap removes South Korean exchanges from cryptocurrency price calculations
By Bob Garcia
Questions about valuations on the exchanges forces the crypto price tracker to take action
As of yesterday, it seems that CoinMarketCap, the cryptocurrency price tracker, had not shared any kind of report regarding the data of the main crypto exchanges located in South Korea, including Coinone, Upbit, Korbit and Bithumb. Molly Jane Zuckerman, CoinMarketCap’s content manager, has given several explanations and said the removal was mainly due to the premium seen on South Korea-based cryptocurrency exchanges.
In order to get an accurate estimate of the average crypto price, CoinMarketCap uses data from many exchanges worldwide, including several in South Korea. However, concerns over how the exchanges might be presenting information forced changes to be made. CoinMarketCap explained that, due to this decision, only Bitcoin prices had been affected in any way.
It is no secret to anyone that the movement of crypto assets on South Korean exchanges is of great significance. Last month the volume of transactions in the digital currency market in this area reached an all-time high, with Bitcoin’s price being a major driver for that to happen. At the end of yesterday, the price of Bitcoin was around $57,721, which represents a 2% drop.
“If the prices on South Korean exchanges stabilize, then we will add the data back in, but that hasn’t happened yet,” said Zuckerman. A decision of this magnitude had not been made since 2018 when the price tracking site indicated that it had “excluded some South Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”