- CoinMarketCap committed a blunder that had left investors perplexed. CMC was recently taken over by leading crypto exchange Binance.
- After a hiatus to 6-7 hours, CMC accepted that it was a blunder on their part and rectified the same.
On 23rd July 2020, CoinMarketCap committed a blunder that had left investors perplexed. CMC was recently taken over by leading crypto exchange Binance. CoinMarketCap took out a new ranking system for DeFi tokens and listed it’s new owner’s digital token, Binance Coin (BNB) as the market leader. After a hiatus to 6-7 hours, CMC accepted that it was a blunder on their part and rectified the same.
Guess what is on #1?
— CR1337 (@cryptonator1337) July 23, 2020
BNB Is Nowhere Close To A Defi Project
With a supply of 200 million tokens, BNB is the digital coin issued by Binance, majorly created to finance the activities on the crypto exchange. Investors can easily pay listing fees, exchange fees, and trading fees, to name a few. The Binance ecosystem revamped from the funds it received through the digital coin’s ICOs. Decentralized Finance is the whole ecosystem consisting of smart contracts, protocols, and digital assets. Hence, ranking BNB as the top DeFi project would be wrong in all aspects.
Criticism that followed
Aghast at the strange listing, experts around the world termed the act as ‘shameless.’ Furthermore, Qiao Wang, a crypto trader, exclaimed that digital coins are rebranding themselves as DeFi projects to cash in on the hype of the latter.
Moreover, it might lead to the growth of the DeFi market cap to more than 10x times, which is not correct. Moreover, the ‘strict methodology’ followed by CMC for their ranking system drew a considerable amount of flak for the error.
Rectified soon after the error was noticed
A spokesperson came to CMC’s rescue and acknowledged that it was a human error. CoinMarketCap removed BNB from its rankings and gave the number one position to CHAINLINK. Furthermore, the error committed on the same day when the integration of Chainlink data oracles with Binance Smart Chain announced. However, It merely shows the gross mismanagement at the hands of a few. Moreover, DeFi is the way forward for the financial ecosystem, but with such blunders, the path does not seem very rosy.