Coinmarketcap

Key Points

CoinMarketCap is a leading website for cryptocurrency data, founded in 2013 by Brandon Chez.
It provides prices, volumes, and market caps for over 11,000 cryptocurrencies, owned by Binance since 2020.
Research suggests it plays a key role in market transparency, though its acquisition raised concerns about impartiality.
The evidence leans toward its impact being significant, with warnings like the 2021 "Squid" coin scam highlighting its influence.

Overview

CoinMarketCap is a vital resource for anyone interested in cryptocurrencies, offering real-time and historical data to help users make informed decisions. Founded in 2013, it has grown into one of the most trusted platforms in the crypto space, now owned by Binance since their 2020 acquisition. This ownership has sparked some debate about potential conflicts of interest, but it continues to provide essential tools like portfolio trackers and liquidity metrics.

History and Ownership

Starting in New York City, CoinMarketCap was created by Brandon Chez to track emerging crypto markets. By 2018, it was among the most visited websites globally, per The Wall Street Journal. Key events include removing South Korean exchanges in 2018, affecting XRP's market cap, and introducing a liquidity metric in 2019 to combat fake volumes. Binance's acquisition in April 2020, valued at around $400 million, marked a significant shift, with the platform remaining independent under a holding company.

Features and Impact

The site tracks over 11,000 cryptocurrencies, offering features like real-time updates, exchange rankings, and market insights. Its 2019 liquidity metric replaced volume rankings to better reflect market activity, addressing issues like wash trading. CoinMarketCap's warnings, such as the 2021 "Squid" coin scam, have been cited by major media, showing its role in fraud prevention and market transparency.

Survey Note: Comprehensive Analysis of CoinMarketCap

This survey note provides an in-depth exploration of CoinMarketCap, a pivotal platform in the cryptocurrency ecosystem, based on extensive research into its history, features, ownership, and impact. The analysis aims to offer a detailed understanding for users seeking a thorough overview, building on the key points and sections above.

Introduction and Background

CoinMarketCap, founded in 2013 by Brandon Chez in New York City, emerged as a response to the growing need for reliable cryptocurrency data. The platform's mission has been to provide accurate, timely, and unbiased information on prices, trade volumes, and market capitalizations, serving a global audience. By May 4, 2025, it remains a cornerstone for crypto enthusiasts, investors, and traders, with its data frequently referenced in media and industry reports.

Historical Development

The platform's journey began with a focus on tracking emerging crypto markets, quickly gaining traction. By 2018, The Wall Street Journal recognized it as one of the most popular websites worldwide, reflecting its rapid adoption. Key historical milestones include:

January 2018: CoinMarketCap made a significant decision to exclude South Korean exchanges from its price calculations due to regional price discrepancies. This action led to a notable decline in XRP's market capitalization, creating market turbulence and highlighting the platform's influence on pricing dynamics.
November 2019: To address the issue of fake trading volumes, often inflated through practices like wash trading, CoinMarketCap introduced a "Liquidity" metric. This shift aimed to provide a more accurate measure of market activity, focusing on order book depth and trading efficiency, as detailed in a blog post from CoinMarketCap (CoinMarketCap Launches New Liquidity Metric).
April 2020: Binance, a leading cryptocurrency exchange, acquired CoinMarketCap for an estimated $400 million, as reported by Forbes (Forbes: Binance Acquires CoinMarketCap) and The Block (Binance to acquire CoinMarketCap in $400 million deal). The deal, primarily in equity and BNB, was one of the largest in the crypto space, raising questions about potential conflicts of interest but with assurances of maintaining independence under a holding company.

In November 2021, CoinMarketCap gained attention for warning users about the "Squid" coin, a cryptocurrency inspired by the Netflix series Squid Game. The token, revealed as a scam with investors unable to sell, saw its value collapse, and CoinMarketCap's alert was cited by The New York Times (The New York Times: Squid Coin Crypto Scam) and Vice (Vice: Squid Game Memecoin Collapse), underscoring its role in fraud prevention.

Features and Functionality

CoinMarketCap's features are designed to cater to a wide range of users, from casual investors to professional traders. Key offerings include:

Data Coverage: Tracks over 11,000 cryptocurrencies, providing real-time and historical data on prices, market caps, and trading volumes. This extensive coverage is accessible via its official website (CoinMarketCap Official Website).
Portfolio Tracker: Users can create and monitor their crypto portfolios with real-time updates, enhancing personal investment management.
Market Insights: Includes tools like the CoinMarketCap Index (CMC 100), Fear and Greed Index, and Altcoin Season Index, offering insights into market trends and sentiment.
Exchange Rankings: Serves as a source for ranking cryptocurrency exchanges, initially based on volume but shifted to liquidity in 2019 to address manipulation concerns.
Liquidity Metric: Introduced to replace volume as the default ranking metric, focusing on order book depth and slippage. This metric, detailed in CoinMarketCap's support documentation (Liquidity Score Methodology), aims to provide a more reliable indicator of market liquidity, encouraging genuine trading activity over inflated volumes.

These features have made CoinMarketCap a go-to resource, with its mobile app also offering real-time tracking and news, as noted in app store descriptions (CoinMarketCap: Crypto Tracker on the App Store).

Ownership and Independence

Since its acquisition by Binance in April 2020, CoinMarketCap has operated under Binance's ownership, with the deal valued at approximately $400 million. Despite concerns about potential bias, Binance CEO Changpeng Zhao emphasized maintaining independence, with the platform run under a holding company. This structure aims to preserve its role as an unbiased data provider, though some industry observers, as noted in Finance Magnates (CoinMarketCap Acquisition by Binance: Centralization in Action), have raised concerns about centralization and impartiality in rankings.

Impact on the Cryptocurrency Ecosystem

CoinMarketCap's impact is multifaceted, influencing both market dynamics and user behavior:

Transparency and Trust: By providing accurate data, it has become a trusted source, helping to instill transparency in a market often criticized for opacity. Its data is frequently cited in media, reinforcing its authority.
Market Influence: Rankings and metrics, especially post-2019 with the liquidity metric, affect investor decisions, with exchanges vying for top spots to attract users. The 2018 South Korean exchange removal, for instance, significantly impacted XRP's market cap, illustrating its market-moving potential.
Fraud Prevention: The 2021 "Squid" coin warning, where CoinMarketCap highlighted issues like users unable to sell on PancakeSwap, demonstrated its role in protecting users. This was covered extensively by CBS News (Squid Game crypto coin promoters vanish with investor millions in "rug pull" scam) and others, showing its influence in scam alerts.
Industry Standard: As a benchmark for crypto data, it is often referenced in research and reports, solidifying its position as an industry standard, as seen in its citations by Bloomberg and other outlets.

Comparative Context

Compared to competitors like CoinGecko (Cryptocurrency Prices, Charts, and Crypto Market Cap | CoinGecko) and CoinCap.io (CoinCap.io | Reliable Cryptocurrency Prices and Market Capitalizations), CoinMarketCap stands out for its historical dominance and extensive user base, with Alexa rankings placing it significantly ahead in web traffic. However, the 2020 acquisition by Binance has intensified competition, with some users turning to alternatives for perceived impartiality.

Tables for Clarity

To organize key details, the following tables summarize critical aspects:

Detail	Information
Founded	2013
Country of Origin	United States
Area Served	Worldwide
Owner	Binance (since April 2020)
Founder(s)	Brandon Chez
Industry	Data tracking
URL	CoinMarketCap Official Website
Popularity Milestone	By 2018, one of the most popular websites (The Wall Street Journal)
Significant Event 1	January 2018: Removed South Korean exchanges, impacted XRP market cap
Significant Event 2	November 2019: Introduced Liquidity metric for transparency
Acquisition	April 2020: Acquired by Binance, deal possibly $400 million (Forbes)
Fraud Warning	November 2021: Warned about "Squid" coin scam, cited by Vice, NYT

Feature	Description
Data Coverage	Tracks over 11,000 cryptocurrencies, real-time and historical data
Portfolio Tracker	Real-time updates for user-created crypto portfolios
Market Insights	Includes CMC 100, Fear and Greed Index, Altcoin Season Index
Exchange Rankings	Ranks exchanges, shifted to liquidity metric in 2019
Liquidity Metric	Replaces volume, focuses on order book depth, combats fake volumes

These tables encapsulate the platform's evolution and functionality, providing a structured overview for users.

Conclusion

CoinMarketCap remains a foundational element of the cryptocurrency ecosystem, offering critical data and tools while navigating challenges like ownership changes and market manipulation. Its role in transparency and fraud prevention, as seen in the "Squid" coin case, underscores its importance, though ongoing debates about impartiality post-acquisition highlight the complexities of its influence. This analysis, current as of May 4, 2025, provides a comprehensive view for users seeking to understand its significance.

Key Citations

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