CoinMarketCap, a global source for cryptocurrency market data, caused cryptocurrencies to crash on Monday after it had tweeted out that it will exclude Korean exchanges prices due to the significant difference in prices compared to the rest of the world.
“This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity. We are working on better tools to provide users with the averages that are most relevant to them.” wrote CoinMarketCap.
The announcement removed data from Bithumb, Coinone and Korbit from CoinMarketCap’s average calculations. The move resulted in an overall decline across all cryptocurrencies.
The three exchanges are ranked among the top 15 exchanges in terms of 24 hour volume traded. The main cryptocurrency traded on all three exchanges is Ripple/XRP. Ripple saw prices decline by as much as 30 percent.
Ripple chief cryptographer, David Schwartz tweeted out saying that the exclusion of Korean exchanges that “new price is more accurate and meaningful.”
Many cryptocurrency traders and investors flocked to social media to express their disappointment about CoinMarketCap removing data so suddenly. Traders who saw the plummet feared it was a market crash and then contributed even more to the decline.
Bitcoin prices fell sharply from $16,300 down to a low of $14,200 on CoinMarketCap on Monday after the announcement.
As of Tuesday, bitcoin prices were trading at $14,700 on Coinbase’s GDAX exchange, while bitcoin was trading at $21,200 on bithumb.