Bitcoin, Ethereum Price Crash? CoinMarketCap Bug Mistakenly Cuts Crypto Prices by 99%!

To check the latest prices of their crypto holdings, investors of Bitcoin, Ethereum and other digital tokens visited CoinMarketCap’s real-time tracker to their utter shock.

They saw a sharp drop in prices of up to 99 percent, which indicates that the cryptocurrency market has plunged into a recession.

However, all they saw was not actually a real crash. CoinDesk reported that this was due to a CoinMarketCap glitch that first occurred in the early hours of Wednesday. This flaw showed incorrect cryptocurrency trading prices, but was subsequently addressed and resolved within an hour.

By later Wednesday, prices were back to normal. However, the standard height numbers for the symbols remain wrong. The record high price of Bitcoin is fixed at $8.6 million, well above the record high of $69,000 set in May 2021.

Coinmarketcap, owned by Binance, has been among the best resources and references for the crypto world. It monitors pricing and trading data on cryptocurrency exchanges in real time, comparing the information with each other for confirmation before arriving at the final price published on the site.

Also Read: Bitcoin, Ethereum and Top Cryptocurrencies Continue Freefall in Crypto Crash: $500 Billion Eliminated

If a price of $49,000 is shown on the CoinMarketCap tracker, this means that the value was the result of real-time monitoring of trading prices on a number of trusted cryptocurrency exchanges. But even with advanced technology, errors still happen. This CoinMarketCap glitch showed false prices for all cryptocurrencies on Wednesday morning, even as data on exchanges remained accurate.

CoinMarketCap Error: Error in Bitcoin, Ethereum Price and Market Value

The CoinMarketCap blunder sent the bitcoin price up to $789 billion, providing a market capitalization of $14.7 quintillion. Other major cryptocurrencies, such as Ethereum and Cardano, have also been posted wrongly, with Ether at $757,200 and ADA at $256, also showing sharp gains.

Close tracking of the prices of these crypto assets reveals that Bitcoin is already trading at $48,998.13, Ethereum at $4,046.44, and Cardano at $1.31, based on real-time CoinGecko numbers late Wednesday.

As a result, decentralized alternatives for providing pricing data have been recommended.

“Decentralized Oracle Networks” are the best alternatives to single rate resources

Chainlink co-founder Sergey Nazarov told CoinDesk that the flaw illustrates why blockchain applications and smart contracts should use “decentralized oracle networks.” Relying on a single data source is a “recipe for disaster,” he said, putting investments at risk.

Due to the flaw, Decentralized Finance (DeFi) projects that use CoinMarketCap data have halted their offerings to protect their operations. DeFi Chain, a Bitcoin-focused lending service, tweeted that it is automatically stopping all DeFiChain Vaults to ensure the safety of its users’ loans.

DeFi protocols rely on smart contracts for decentralized services such as loans, using pricing information from pricing platforms such as CoinMarketCap to ensure their offerings match current market prices. Meanwhile, CoinMarketCap has addressed the error and outlined its next steps in a tweet on Wednesday. She said that after discovering the bug and solving the problem.

CoinMarketCap will restart its servers as a final step that forms part of its internal reform plan.

Related article: How is technology development affected by cryptocurrencies?

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