Odaily Frontline｜CMC listed BNB as a DeFi token and ranked first, sparking controversy
This article comes fromBeincrypto, by Rick D.
Odaily Translator |
Odaily Translator |
Much-criticized crypto ranking site CoinMarketCap (CMC) has attracted more attention by suddenly including Binance Coin (BNB) in its DeFi projects section.
The incident is the latest in a series of controversies that have led industry observers to claim that Binance is using CoinMarketCap to further its own interests.
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BNB briefly appeared on the CMC DeFi page and topped the listCoinMarketCap recently increased the number of projects related to the DeFi industryranking page
. However, not everyone agrees with the company's definition of DeFi.
What attracted most of the criticism was BNB's sudden top spot on this leaderboard. When it comes to DeFi, BNB is not usually mentioned alongside assets like Compound or Maker. Some industry observers have accused CMC of serving the interests of its new owner, Binance.CR1337（@cryptonator1337）Twitter and podcast users
The tweet garnered a lot of attention, with multiple Twitter users blaming the two companies. In their opinion, BNB should not appear in any DeFi leaderboard.
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CMC Quick Delete
Just a few hours after BNB first appeared on the page, it suddenly disappeared from the top of the list. BNB does not currently appear in the DeFi sector.
BeInCrypto reached out to Binance and CoinMarketCap for comment on the changes, with a spokesperson responding as follows: "The people who work at CMC are human just like any of us. Adding BNB to the CMC DeFi page was a human error and when people alerted CMC, We have corrected that error. We want to emphasize again that we remain neutral to our parent company and strive to present accurate and relevant data on the crypto revolution to the world."
Others said they had previously stopped or would stop using CMC immediately to reference prices and other industry indicators.
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Is BNB a DeFi project?
How does the industry define DeFi? A broad definition could indeed include BNB, as it is at the heart of how the Binance decentralized exchange operates.
DeFi project tokens serve little purpose other than being used in decentralized finance applications. Even Udi Wertheimer, a long-time cryptocurrency observer and programmer who took the opposite stance, said that Binance Coin is in line with other so-called DeFi projects included in the CMC leaderboard.
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According to a statement received by BeInCrypto, a CMC spokesperson explained the company's definition of DeFi: "Regarding the methodology of our DeFi page, we want to limit the scope of the definition of 'DeFi protocol' and 'DeFi token' as much as possible, because if we start With a broad definition of the term, this page would be meaningless. One can argue that all cryptoassets can function as a permissionless, decentralized transfer of value, and we hope that the definition of 'DeFi' is more accurate than that strict."
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No. 1 is still contested
Despite Binance Coin’s sudden disappearance from the No. 1 spot, many observers still feel that the way CoinMarketCap defines DeFi is at odds with how the industry as a whole is doing.
ChainLink (LINK), which replaced BNB, has also been questioned, and generally LINK will not be compared with DeFi tokens.ChainLink became the number one DeFi project in the ranking released on July 20. Public speaker and industry analyst Jason Fernandes (@TokenJay)Doubt LINK ranks first in CMC DeFi. Fernandes speculated at the time that Binance Coin might find a way to get listed on CMC’s DeFi page and become the second-largest DeFi token.
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This is not the first time allegations have been made against Binance and CMCThe two companies have faced a lot of criticism since Binance acquired CoinMarketCap this year. As BeInCrypto reported in May,Initial Adjustments to the CMC Ranking System
Seems to favor Binance more.
At that time CoinMarketCap suddenly changed the algorithm. Previously, CoinMarketCap’s exchange rankings were based on reported trading volume, which favored exchanges that promoted suspicious volumes.
It can be said that this change is for the better. Relatively unknown brands such as BKEX, P2PB2B, and LATOKEN emerged as the leading exchanges based on fake trading volumes, which obviously does not accurately reflect the situation in the industry.
But observers continue to question the motives of the new CMC owner. Another recent algorithm change by CoinMarketCap looks more like promoting Binance at the expense of other exchanges. After adding the Confidence metric, some of Binance’s main competitors dropped out of the top 100 entirely.Cryptocurrency derivatives platforms rank poorly after this change. BitMEX fell to 175th and Deribit to 179th. this promptsThe latter tweeted
, "We are pleased to inform you that @CoinMarketCap has listed Deribit exchange #179 with a liquidity score of 0. We would like to take this opportunity to congratulate all the exchanges on the list that we have never heard of. "In response to doubts,CoinMarketCap official responded at the time that
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Odaily Frontline | Ranked 175th on the CMC exchange, BitMEX expresses dissatisfaction
