On Tuesday, CoinMarketCap briefly reported a sharp decline in Toncoin’s ,TON, price, showing a drop from $5.5 to $0.30. However, this sudden dip was due to a glitch on the platform, and other cryptocurrency platforms were not affected by this error.
CoinMarketCap quickly acknowledged the mistake. Specifically, they admitted that they had incorrectly displayed a drop in TON’s market capitalization from $13 billion to $150 million. After users noticed and reported the abnormal price change, CoinMarketCap reassured them with a statement. “Don’t worry, our developers are actively investigating the issue and working to resolve it as soon as possible.”
What Caused the Glitch?
The glitch occurred when TON’s price on CoinMarketCap suddenly dropped from $5.5 to $0.30, caused by what was described as a network failure. During this period, other price aggregators and exchanges continued to report TON’s price without any issues.
Some users speculated that the disruption might have stemmed from a problem within the indexer. At 09:05 UTC on Tuesday, when the issue was first reported, TON was trading at approximately $5.18.
CoinMarketCap’s Data Vulnerabilities
CoinMarketCap aggregates cryptocurrency prices using data from various exchanges. However, this system can sometimes be vulnerable to errors.
If an exchange provides inaccurate data due to technical issues, manipulation, or low liquidity, it can cause incorrect pricing on CoinMarketCap.. For example, when a token is traded on a single exchange with particularly low liquidity or volume, it can lead to significant pricing inconsistencies.
Additionally, technical problems within CoinMarketCap itself can also result in errors in the price information displayed. Such as server failures, software bugs, or inaccuracies in pricing algorithms.
TON Blockchain Experiences Outages Due to DOGS Token Minting
In related news, The Open Network (TON) blockchain recently faced two outages, occurring two days apart. These disruptions, confirmed by the TON network, were directly linked to the intensive minting of the DOGS token.
Earlier last month, Binance announced that it would list TON’s token for trading, which led to a 12% surge in TON’s market capitalization.
TON was originally developed to be integrated into the messaging platform Telegram, enhancing its various capabilities. However, recent interest in the platform has been spurred by the arrest of Telegram CEO Pavel Durov by French authorities in Paris, where he faces charges of illegal activities, drug trafficking, fraud, and money laundering.
Despite these challenges, TON now operates independently of Telegram and has secured a significant position in the blockchain world.