CoinMarketCap Admits to Glitch After TON Price Shows Massive 93% Drop

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

September 3, 2024 05:58 EDT

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CoinMarketCap admitted to pricing inconsistencies after its platform mistakenly showed Toncoin’s (TON) market capitalization briefly dropping from $13b to below $150m on Tuesday.

“Rest assured, our devs are actively investigating the issue and working to resolve it as quickly as possible,” the team said in an X post after users reported the abnormal drop in price.

At first, TON’s price on CoinMarketCap dropped sharply from $5.5 to $0.30 due to a network glitch. Meanwhile, other aggregators and exchanges continued to operate without any issues.

Some users speculated that the glitch could be related to a problem with the indexer. By 0905 UTC on Tuesday, TON traded at around $5.18.

CoinMarketCap Data Vulnerable to Errors from Exchange Glitches and Low Liquidity

CoinMarketCap gathers data from various exchanges. However, if an exchange provides inaccurate data due to technical errors, manipulation or low liquidity, it can distort the prices shown. For instance, pricing discrepancies can occur when a token is traded primarily on a single exchange with low liquidity or volume.

On the other hand, the issue can also stem directly from CoinMarketCap itself. Problems like server malfunctions, software bugs or inaccuracies in its pricing algorithms can also cause errors.

TON Blockchain Faces Two Outages Tied to DOGS Token Minting

Last week, the TON blockchain ran into two separate outages within two days. Both interruptions were directly attributed to the minting of the DOGS token, as initially reported by observers and subsequently verified by the TON network.

Earlier last month, TON surged 12% following Binance’s announcement to list the token for trading.

TON was originally developed by Telegram, with the intention of integrating it into the messaging platform to enhance its capabilities. Recently, the blockchain has been in the spotlight following the arrest of Telegram’s CEO, Pavel Durov, in Paris by French authorities.

Durov is facing serious allegations, including complicity in managing a platform for illegal activities, drug trafficking, fraud and money laundering.

However, TON has transitioned and now operates independently from Telegram.