Yesterday, Sunday, January 17, 2021, for a few minutes, Cryptocurrency Incent ranked second on CoinMarketCap by market capitalization, even ahead of Ethereum.
In fact, even now on the Incent chart on CoinMarketCap (CMC), it shows that yesterday in five minutes its market capitalization passed from $ 516,000 to more than $ 78 billion, only to go back to $ 840,000 after about an hour.
So, for all intents and purposes, yesterday for about an hour, Incent (INCNT) was the second largest cryptocurrency by market capitalization on CoinMarketCap, but not on CoinGecko, for example. Why?
Market capitalization is actually just a trivial technical calculation that is obtained by multiplying the number of tokens in circulation by the price of a single token.
For example, on CoinGecko, the circulating supply for Incent is not specified, so the market cap has not been calculated either, and yesterday's price ranged between $ 0.07 and $ 0.18.
On the other hand, in CMC the circulating supply is approximately 46 million INCNT, and with a current price of approximately $ 0.02, it has an updated market capitalization of approximately $ 860,000.
From these data, it is clear that something not block, given the significant difference in the price of the same token, INCNT, between two aggregators that should indicate more or less the same data.
What happened yesterday with the Incent cryptocurrency (INCNT)?
The explanation is that CoinMarketCap and CoinGecko They have different sources from which to get the market price from INCNT, as the first one gets its data from Folgory, while the second one from Waves.Exchange.
Also, the fact that they have a single source makes the data easily manipulable.
Suffice it to note that INCNT's trading volume in BTC on Folgory yesterday was just $ 217, while on Waves.Exchange it was $ 5,413.
With such a ridiculous trading volume, it is very easy to manipulate the price by placing buy or sell orders at exorbitant prices.
In fact, yesterday in CMC the price of INCNT went from $ 0.01 to $ 1.703 in five minutes, an incredible gain of 17,000,000%. After an hour it returned to $ 0.018.
Given the negligible volumes, this was probably a handling, because it's hard to believe that it could have been a mistake, given the size of the difference. In other words, someone probably managed to buy all the INCNT tokens for sale on Folgory and, having cleaned up the order book in this way, loaded new buy and sell orders from scratch at exaggerated prices. As a result, commercial prices they were crazy for an hour and the market capitalization also soared.
It would have been enough for CMC to average Folgory's price against Waves.Exchange, perhaps in proportion to volume, for this not to happen.