Recently, Coinbase and Trust Wallet received erroneous pricing data from cryptocurrency market data provider CoinMarketCap. The information revealed inflated pricing for SHIB, Ethereum, and Bitcoin. No indication of a hack exists.
CoinMarketCap, a provider of cryptocurrency market data, has provided Coinbase and Trust Wallet with erroneous pricing data. The data demonstrated that the prices of Bitcoin, Ethereum, and SHIB were exaggerated. No proof of a hack has been found.
The inaccuracy had no effect on trade, said Coinbase, which makes use of data from CoinmarketCap. The price was displayed incorrectly. Assets in the Coinbase Wallet and non-tradeable asset data were also impacted. It's unclear whether the error resulted from a software defect or a security compromise. At around 21:36 UTC, CoinMarketCap's website reported that engineering was aware of the inaccurate prices but was working to fix the problem. At 21:39 UTC on December 15, 2021, the situation was declared to be resolved. All of CoinMarketCap's systems are functioning right now.
Effects of Pricing Glitch
Despite the $1.2 miner fee, Twitter user @michaeljknowles tweeted that he looked to have $7.7B worth of Ethereum in his Coinbase Wallet and made the decision to sell. He only got $48.05 from him. The true value of Binance Coin, which was reported at more than $2B, was $527. Shiba Inu's cost increased to $22,026. It actually cost something about $0.000034. Although the coin and token balances looked to be accurate, Trust Wallet was also impacted. The cryptocurrency lending and trading company BlockFi accidentally deposited bitcoin into users' wallets earlier this year, with one user earning almost 700 BTC. If any users attempted to withdraw bitcoin from the wallet, BlockFi demanded that they return the money and threatened legal action.
Pricing Error Is Bad For The Sector
After the attack, Nic Carter of Castle Island Ventures stated, "We need dependable and transparent data sources for these markets to be seen as credible by institutions and regulators." Sergey Nazarov, a co-founder of Chainlink, thinks decentralized oracles will be the solution to issues like this. A centralized source of market data, CoinMarketCap is owned by Binance.
