Paolo Ardoino, CTO of Bitfinex, is claiming that there is something wrong with CoinGecko’s reporting. The crypto-market data site is apparently reporting incorrect depth values for the exchange.
CoinGecko is apparently under-reporting some market data from Bitfinex. The CTO recently spoke out about it on Twitter and corrections will be made on CoinGecko in the near future.
CoinGecko Under-Reporting Market Depth
The CTO of Bitfinex, Paolo Ardoino, is raising concerns regarding the ways with which CoinGecko calculates its depth values. Although he shied from making any direct accusations, he simply said that CoinGecko was “under-reporting” its data on Bitfinex.
According to CoinGecko, Bitfinex has a +/-2% depth value at around ~$260,000. However, Ardoino claims that the actual number should be around $4M. He reached out to CoinGecko on Twitter yesterday:
. @coingecko is it possible that you're under-reporting the +/-2% depth values for @bitfinex ?
They are reported as ~260k but actually are around 4M. Am I correct or misinterpreting how to read the info? pic.twitter.com/jk4OhLTs1Q
— Paolo Ardoino (@paoloardoino) October 31, 2019
As it turns out, Ardoino was right. CoinGecko responded on Twitter saying that the team was having issues with the API capturing the ‘precision and length of the order book.’ It is apparently looking into extending the API to allow it to capture wider order book data. So, it seems like it was an issue on CoinGecko’s end after all.
Does the Orderbook Represent Real Volume?
CoinGecko is currently the second-largest market data platform in the entire cryptocurrency industry, after CoinMarketCap. Therefore, its API is used quite widely and wrong information could easily skew the algorithmic market analysis. However, CoinGecko did not venture into the question of whether Bitfinex’s order book is legitimate or not.
According to Bitwise, which was responsible for that famous report that 95% of all cryptocurrency trading is fake, Bitfinex has around $46M in real daily volume. Compare that to around $81M reported by CoinMarketCap, and there seems to be a significant discrepancy.
However, Bitfinex is far from the worst offender of wash trading. It currently ranks sixth by ‘real volume’ according to Bitwise. Still, maybe CoinGecko should look into not only correcting its API but also assessing whether the trading volume and order book is legitimate or not.
Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!