Bitcoin prices from embattled cryptocurrency exchange Bitfinex have been excluded from crypto data provider CoinMarketCap’s weighted average calculation.
White Bitfinex is still listed on the site’s BTC/USD markets page, it now comes with a single asterisk that corresponds to “Price excluded.”
This isn’t the first time data from Bitfinex was excluded from CoinMarketCap’s calculations. Last year, bogus data on a non-trading pair (USDT and USD) that reportedly came from Bitfinex’s API was subsequently scrubbed from CoinMarketCap’s volume data.
BTC trading at a significant premium on Bitfinex
Earlier this month, CoinMarketCap announced that it is partnering with major crypto exchanges, including Bitfinex, to provide more transparency into crypto market prices under a new alliance called the Data Accountability & Transparency Alliance (DATA).
Bitfinex, of course, is not the only exchange whose prices are excluded from CoinMarketCap’s weighted average calculation. The site explains that such exclusions occur when the prices do not seem indicative of a free market price:
“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.”
It’s worth noting that Bitcoin is currently trading at a significant premium on Bitfinex compared to other crypto exchanges. Bitfinex has Bitcoin listed at around $6,250, while Coinbase has its price at just over $5,900—much closer to CoinMarketCap’s weighted average of around $5,950.
Bitfinex still can’t catch a break
This news comes while Bitfinex is still engaged in a long-drawn-out legal dispute with the New York Attorney General (NYAG) Letitia James.
The NYAG has accused Bitfinex of colluding with stablecoin issuer Tether, with which it shares management and owners, to cover up a loss of around $850 million worth of corporate and client funds.
Bitfinex has since been blocked from accessing a line of credit from Tether by the NYAG. Recently, the troubled company announced a $1 billion token sale, presumably to raise much-needed funds via an initial exchange offering.
While an official white paper for the token sale has yet to be released, Bitfinex shareholder Zhao Dong, who also announced the token sale, has already started to take pre-orders from investors who want to participate in the sale.