What if we told you that CoinMarketCap was the most popular website in the crypto space?
Just over 4 years ago, a developer in NYC, Brandon Chez decided that there needed to be a way of seeing all the crypto prices in one place.
At that stage there was just a handful of crypto tokens compared to now, with Bitcoin still leading by a far way, and Ripple high up on the list – but just a few years ago, when CoinMarketCap was created, Ethereum, which is currently ranked number 2 on CMC, didn’t exist, and nearly all of the over 1500 tokens listed on Coin Market Cap didn’t exist either!
Brandon Chez was a programmer, apparently from Queens, and he decided to do something about it – so he built a platform which showed the current prices of the tokens, and some history about them.
At a glance on CoinMarketCap, on their home page, you can see the following information about each of the top 100 tokens:
- Market Cap
- Volume (over the last 24 hours)
- Circulating Supply
- Change (over the last 24 hours)
- Price Graph (from the last 7 days)
And then, on CoinMarketCap, you can click on each token, and see a wealth of information about them, such as:
- Charts (with a variety of different metrics)
- Markets (which ones they’re trading on, and the volume for each one)
- Social Media Feeds (such as Twitter and Reddit)
CoinMarketCap was an immediate hit. Within a couple months, they were the go-to place for finding out data about the different cryptocurrencies.
They also came up with some interesting graphs which made people come back on a regular basis to see crypto data. One of the most interesting was the overall state of the crypto market.
Along the top of the CoinMarketCap website, they show 5 pieces of data, which are watched with eagle eyes by anyone interested in the crypto space. These 5 crypto data stats are:
- Cryptocurrencies which are listed on crypto exchanges. (currently over 1500)
- Markets – this being the number of crypto currencies multiplied by the number of markets they are traded on multiplied by the pairings. So if Civic is traded on 20 markets (Kucoin, Binance, HitBTC, Bitfinex etc) and on Bitfinex (just as an example), Civic is trading with BTC / CVC and ETH / CVC pairings, that would be counted as 2 different pairings.
- Market Cap – this is probably the most watched stat of all. (with the Bitcoin market cap probably coming in a close second). The overall crypto market cap shows the overall state of all listed crypto currencies. At the beginning of 2017, crypto had a market cap of around $10 billion. By the end of 2017, this number had reached a staggering $800 Billion. A few weeks ago, it fell dramatically to around $350 Billion, (which is still a large multiple compared to a year earlier, even though many people lost a lot of money by buying at the peak). It has now recovered to around $500 Billion, but the alt’s (the tokens lower down on the list) are still taking HUGE strain, while the bigger tokens such as Bitcoin, Ethereum, and NEO have recovered (although Bitcoin is still half of it’s all time high). – Anyway, we digress – what we wanted to point out, is that the Market Cap number on CoinMarketCap is probably the most watched number.
- 24 hour volume of how much the tokens were traded across the industry – priced in $US (which is interesting, as it should probably be priced in BTC and not USD)
- BTC dominance – what the market cap of Bitcoin is relative to the overall market cap
But CoinMarketCap went a lot deeper with data.
As an example,with the overall market cap stat on CoinMarketCap, you can click on it, and it then shows you a number of other graphs, with the first being the overall market, but the 2nd one being a graph showing the market excluding Bitcoin (which as you can see from the BTC dominance current being at a near all time low of 37%), is far lower than the market including the top crypto currency!
So coinmarketcap has a lot of stats and data!
But how big are they?
If you look at the alexa rankings, which aren’t always that accurate, but give an indication of how popular websites are (and which get more accurate the higher the ranking is), Bitcoin.com has the following rankings:
And CoinMarketCap on Alexa?
That’s right – CoinMarketCap is currently the 78th most popular website in the US, and 106 in the entire world!
There’s a site that estimates how much a site is worth, and how much they make based on a number of factors – we have no idea how accurate it is, and so we won’t mention it here, but according to them, CoinMarketCap is worth just under $100 Million, and is currently making around $80,000 from advertising EVERY single day!
So perhaps Brandon Chez should be thinking about putting CoinMarketCap onto the blockchain as well, and creating some sort of token for his creation – at a valuation of $100 Million, CoinMarketCap would currently be sitting at number 157 on the list, just after Theta Token, and pushing Airswap into spot number 158.
Of course, with all startup’s and business’s, nothing is easy.
In addition to a massive amount of publicity and praise for CoinMarketCap, Brandon Chez has also received a huge amount of negative publicity. One of the biggest outcries, was when CoinMarketCap decided that some of the South Korean exchanges were trading too high (there are reason’s that tokens trade on South Korean crypto exchanges at a premium), and without any explanation on the homepage, suddenly excluded some of the market cap of certain tokens. This resulted in a dip in the overall marketcap figure – the one we discussed above – and certain crypto fans around the world, have gone as far as claiming that this action resulted in the Crypto “bubble” bursting in early January!
The Wall Street Journal (according to the Daily Management Review website) stated that:
The rate of bitcoins and dozens of other crypto-currencies fell sharply on January 8, causing their total market capitalization to decline by more than $ 100 billion. The starting point for this global collapse was the apartment in a new residential building in Long Island City, New York. There works 31-year-old programmer Brandon Chez, creator of the site coinmarketcap.com. This resource appeared in 2013 and has become the leading source of data on the bitcoin rate and other crypto-currencies, as well as one of the most visited websites in the world.
According to Brandon Chez, it was just co-incidence that CoinMarketCap made these changes at the exact time that the market took a tumble, and at that particular time in early Jan, there was a huge amount of other crypto news causing FUD in the market, such as the regulation threats in multiple countries, the hack of a major Japanese crypto exchange, the DOW and other major markets starting to tumble, the start of the Chinese New Year which seems to cause a dip every January, and many other factors.
Brandon replied to the Wall Street Journal with the following explanation:
In an e-mail to WSJ, Chez said that he decided to change the algorithm on January 7. But it is still not clear when exactly it came into force. On Monday, January 8, Bitcoin’s rate and dozens of other crypto-currencies fell, in some cases by 15% or more. On the same day, it became known that the South Korean authorities were checking the use of large banks by the crypto currency, and after lunch, CoinMarketCap reported on Twitter about the exclusion of data from some Korean exchanges. According to Chez, many users complained about the inaccuracy of quotations, but he “did not realize what a great impact” this step would have. “I think that at that moment the market had already begun to decline, so the time was chosen rather unsuccessfully,” he said.
So even though CoinMarketCap has become one of the most successful, valuable websites in the world, (and we won’t be surprised, if a larger company acquires CMC in the next few months), it must be highly stressful running one of the most high trafficked crypto websites in the world, and which pretty much everyone in the crypto world is visiting on a daily basis (if not on a minute by minute or hourly basis).
Yes, CoinMarketCap has competitors (OnChainFX, CoinCodex, CryptoCompare, BitinfoCharts, CoinCheckup, CoinGecko, CoinCap & CoinLib to name just a few), but CMC has been pretty much the dominant data force in the crypto space for the last 4 years, and has created such a brand name (and so many incoming links) that it’s not going to be going away any time soon.
Anyway, it’s taken you about 4 minutes to read this article, so now time to head back to CoinMarketCap to see what’s been happening to your favourite crypto tokens while you’ve been reading!!!!!