CoinMarketCap Price Glitch: Difference between revisions

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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinmarketcappriceglitch.php}}
{{Case Study Under Construction}}[[File:Coinmarketcap.jpg|thumb|CoinMarketCap Logo/Homepage]]On December 15th, 2021, the price on CoinMarketCap glitched. Several services displayed incorrect valuations of user assets, including CoinBase, Crypto.com, TrustWallet, and Yahoo Finance. As far as we can observe, most users discarded the highly unrealistic prices and there was limited material impact from the incident.
{{Unattributed Sources}}


[[File:Coinmarketcap.jpg|thumb|CoinMarketCap]]On December 15th, 2021, the price on CoinMarketCap glitched. As far as we can observe, there were relatively limited impacts due to this incident.
TBD: Integrate more sources/information from <ref name="beincrypto-6151" /><ref name=":0">[https://investorplace.com/2021/12/coinmarketcap-shows-crypto-spike-bitcoin-flippening-in-apparent-glitch/ CoinMarketCap Shows Crypto Spike, Bitcoin ‘Flippening’ in Apparent Glitch - InvestorPlace] (Jan 2, 2024)</ref>


This is a global/international case not involving a specific country.<ref name="beincrypto-6151" /><ref name="barrons-6152" /><ref name="michaeljknowlestwitter-6153" /><ref name="barrons-6154" /><ref name="cryptonews-9849" />
== About CoinMarketCap ==
CoinMarketCap is a website that tracks the price movement of cryptocurrency.


== About CoinMarketCap ==
=== Traffic Statistics ===
"CoinMarketCap is a website that tracks the price movement of cryptocurrency. Binance Capital Management, which runs cryptocurrency exchanges, acquired CoinMarketCap in April 2020." "A recent report by statistics firm HypeStat claimed that every day more than 20 lakh 70 thousand people from countries like the US, India and Japan visit the platform to price-track and stay updated on cryptocurrencies."
A recent report by statistics firm HypeStat claimed that every day more than 70 thousand people from countries like the US, India and Japan visit the platform to price-track and stay updated on cryptocurrencies.


"Crypto market data firm CoinMarketCap experienced a glitch in pricing data for approximately two hours on Wednesday, Dec. 15, 2021. Bitcoin shot to $850B, while Ethereum supposedly hit $179B. This sent traders reeling headfirst into utopia. Many believed they were crypto trillionaires. CoinMarketCap burst their bubble by announcing that a glitch had occurred in its price calculation engine due to the high volume of users on the platform."
=== Acquisition By Binance Capital Management ===
Binance Capital Management, which runs cryptocurrency exchanges, acquired CoinMarketCap in April 2020.


"Binance Coin was listed at more than $2B, with its actual price at around $527. Shiba Inu’s price shot up to $22,026. Its actual price was around $0.000034." "Bitcoin hit $850 billion this past Tuesday while Ether popped to $179 billion per token. The prices weren’t real, of course. But they highlight how vulnerable crypto data providers and exchanges are to glitches and hacks."
== The Reality ==
Trusting any central authority is a potential point of failure. In addition to going offline, the source could provide inaccurate information. Care needs to be taken to avoid making any decisions based on a single source.


"Whether the mistake was due to a security breach or simply a software bug is unclear." "It was an error in the display of the price. Coinbase’s non-tradeable asset data was affected, and assets in Coinbase Wallet were affected."
== What Happened ==
A glitch on CoinMarketCap (CMC) caused incorrect and exaggerated price data for almost all digital assets, making crypto owners briefly appear as "trillionaires" for a few hours<ref name="cryptonews-9849" />. The glitch showed Bitcoin (BTC) trading at around $779 billion and Ethereum (ETH) at $9.2 billion<ref name="cryptonews-9849" />.
{| class="wikitable"
|+Key Event Timeline - CoinMarketCap Price Glitch
!Date
!Event
!Description
|-
|December 14th, 2021 11:56:00 PM MST
|Twitter Reaction From aesa
|Twitter user aesa reports that they "just woke up and almost got a heart attack when I opened coin market cap"<ref>[https://twitter.com/aesampah/status/1471011142675808256 aesa - "I just woke up and almost got a heart attack when I opened coin market cap. almost got me @CoinMarketCap." - Twitter] (Sep 6, 2023)</ref>.
|-
|December 14th, 2021 2:33:50 PM MST
|TrustWallet Richness Reddit Thread
|A post on Reddit suggests that Trust Wallet has caused a significant increase in a user's wealth<ref name=":1">[https://old.reddit.com/r/WallStreetBetsCrypto/comments/rghwv8/trust_wallet_just_made_me_a_very_rich_man_folks/ Trust wallet just made me a very rich man folks. - WallStreetBetsCrypto Reddit] (Dec 29, 2023)</ref>. The user expresses happiness and shares an image of their financial gain. However, the comments reveal that there might be some technical issues or bugs with Trust Wallet, as some users report incorrect price displays and discrepancies across different exchanges. Despite the humorous tone in the comments, users acknowledge the temporary nature of the situation and express mixed reactions, with some mentioning large amounts in their wallets and others sharing their experiences with the price discrepancies. Overall, the post captures a moment of excitement and confusion within the crypto community related to Trust Wallet and potential glitches in the displayed values<ref name=":1">[https://old.reddit.com/r/WallStreetBetsCrypto/comments/rghwv8/trust_wallet_just_made_me_a_very_rich_man_folks/ Trust wallet just made me a very rich man folks. - WallStreetBetsCrypto Reddit] (Dec 29, 2023)</ref>.
|-
|December 14th, 2021 2:59:00 PM MST
|CoinBase Inflated Value Report
|CoinBase reports that they are aware of some users seeing inflated prices on non-tradable assets via their platform<ref>[https://twitter.com/CoinbaseSupport/status/1470876152503803908 Coinbase Support - "We're aware some customers are seeing inflated values for non-tradable crypto assets on http://Coinbase.com and Coinbase Wallet. This is a display issue only and does not impact trading." - Twitter] (Sep 6, 2023)</ref>.
|-
|December 14th, 2021 3:06:00 PM MST
|CoinMarketCap Tweet
|CoinMarketCap tweets to ask the community "How did it feel to be a trillionaire for a couple hours?"<ref>[https://twitter.com/CoinMarketCap/status/1470877760260345859?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1470898131659370496%7Ctwgr%5E34f256de41cdf99b0a40d1857a262f74be7db93d%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcryptonews.com%2Fnews%2Fcoinmarketcap-glitch-sent-btc-eth-billions-affected-coinbase-cryptocom-yahoo-finance.htm CoinMarketCap - "How did it feel to be a trillionaire for a couple hours?" - Twitter] (Sep 6, 2023)</ref>.
|-
|December 14th, 2021 3:11:00 PM MST
|Michael J Knowles Tweet
|"So @CoinbaseWallet showed my having $7.7 billion worth of Ethereum. I felt that was a tidy profit, so I decided to sell, despite the $1.2 billion miner fee. But so far I’ve only received $48.05! Where’s the rest of my money, @coinbase?"<ref name="michaeljknowlestwitter-6153" />.
|-
|December 14th, 2021 3:23:58 PM MST
|InvestorPlace Article Published
|InvestorPlace reports a glitch in CoinMarketCap's crypto prices causing widespread confusion among users of Trust Wallet and Coinbase. The glitch displayed inaccurate data, showing massive spikes in gains for some coins, with values reaching millions or billions of dollars<ref name=":0" />. Shiba Inu even appeared above Bitcoin in market capitalization. CoinMarketCap's website showed Bitcoin at over $836 billion and a market cap of $16 quintillion, despite starting the day at around $42,000. The glitch triggered a social media frenzy with over 16,000 posts under the #CoinMarketCap hashtag. The reliance on CoinMarketCap for data was evident, affecting other websites like Yahoo Finance and Trust Wallet, which also showed similar price fluctuations. CoinGecko, a competitor, continued displaying normal crypto price data. CoinMarketCap acknowledged the glitch, stating that its engineering team was investigating the price issues. While some speculated on the cause, it was emphasized that Coinbase reassured users that it was a display issue only<ref name=":0" />.
|-
|December 14th, 2021 4:26:00 PM MST
|Jack Mull Quit His Job
|Twitter user J4CKMULL reportedly quit his job and bought a lambourghini based on the CoinMarketCap prices<ref>[https://twitter.com/J4CKMULL/status/1470898131659370496 J4CKMULL - "I quit my job and bought a lamborghini, this ain't no laughing matter" - Twitter] (Sep 6, 2023)</ref>.
|-
|December 14th, 2021 4:55:00 PM MST
|CoinMarketCap Tweet
|In response to a user reporting they had left their job and bought a lambourghini, CoinMarketCap recommends to tell their boss it was a prank<ref>[https://twitter.com/CoinMarketCap/status/1470905403831508992 CoinMarketCap - "just tell your boss It was a prank" - Twitter] (Sep 6, 2023)</ref>.
|-
|December 15th, 2021 2:03:00 AM MST
|CryptoNews Article
|CryptoNews reports that A glitch on CoinMarketCap (CMC) caused incorrect and exaggerated price data for almost all digital assets, making crypto owners briefly appear as "trillionaires" for a few hours. The glitch showed Bitcoin (BTC) trading at around $779 billion and Ethereum (ETH) at $9.2 billion. CMC acknowledged the issue, stating their engineering team was investigating. The problem affected various crypto platforms reliant on CMC for data, including Crypto.com, Coinbase, Trust Wallet, and Yahoo Finance.
Social media reactions ranged from humor to panic, with some joking about the situation while others were concerned, especially those with short positions. Some pointed out the need for reliable price oracles to prevent such incidents. Chainlink (LINK) was mentioned as one popular oracle on the Ethereum blockchain. Additionally, there were suggestions that trading bots using CMC's API may have contributed to the brief market rally during the glitch.


"Twitter user @michaeljknowles tweeted that he appeared to have $7.7B worth of Ethereum in his Coinbase Wallet and decided to sell, despite the $1.2 miner fee. He only received $48.05."
As of the latest data, Bitcoin (BTC) is trading at $48,588, up 2.9% in a day but down 3.9% in a week. Ethereum (ETH) is priced at $3,901, unchanged in a day and up 2.1% in a week according to CoinGecko.
|-
|December 15th, 2021 2:36:00 PM MST
|CoinMarketCap Website Announcement
|CoinMarketCap announced that "engineering was aware of the incorrect prices but worked to resolve the issue".
|-
|December 15th, 2021 2:39:00 PM MST
|Issue Is Deemed Resolved
|The issue was deemed to be resolved. "CoinMarketCap’s systems are currently all operational."
|-
|December 17th, 2021 5:59:00 PM MST
|Barron's Article
|Barron's reports on the incorrect prices<ref name="barrons-6154" />.
|-
|December 18th, 2021 7:45:00 AM MST
|BeInCrypto Article
|BeInCrypto reports on CoinMarketCap experiencing a glitch in pricing data on December 15, 2021, causing inaccurate information to be fed to Coinbase and Trust Wallet users. The glitch led to inflated prices for Bitcoin, Ethereum, and SHIB, with some users briefly thinking they had become billionaires. Bitcoin was reported at $850 billion, and Ethereum at $179 billion during the two-hour glitch. CoinMarketCap attributed the issue to a glitch in its price calculation engine due to high user volume. Twitter users reported anomalies in wallet balances, with one user claiming $7.7 billion worth of Ethereum but receiving only $48.05 upon selling. The incident raises concerns about the reliability of market data sources, emphasizing the need for transparent and credible information for institutional and regulatory confidence.
|-
|January 23rd, 2022 9:32:00 AM MST
|Barron's Mention
|Barron's mentioned the incorrect prices in an unrelated article on tech stocks<ref name="barrons-6152" />.
|}


“A drastic volume of users...caused huge pressure in our servers and impacted our price calculation engine,” CoinMarketCap said in an email to Barron’s, adding that the issue was quickly fixed.
== Technical Details ==
The impacts of the incident were limited by the incredibly unrealistic nature of the price data and the short time frame. The issue was resolved within a couple of hours.


"CoinMarketCap’s website announced at approximately 21:36 UTC that the engineering was aware of the incorrect prices but worked to resolve the issue. The issue was deemed resolved at 21:39 UTC on Dec. 15, 2021. CoinMarketCap’s systems are currently all operational."
"Crypto market data firm CoinMarketCap experienced a glitch in pricing data for approximately two hours on Wednesday, Dec. 15, 2021. Bitcoin shot to $850B, while Ethereum supposedly hit $179B. This sent traders reeling headfirst into utopia. Many believed they were crypto trillionaires. CoinMarketCap burst their bubble by announcing that a glitch had occurred in its price calculation engine due to the high volume of users on the platform."


This is a global/international case not involving a specific country.


The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
"Binance Coin was listed at more than $2B, with its actual price at around $527. Shiba Inu’s price shot up to $22,026. Its actual price was around $0.000034." "Bitcoin hit $850 billion this past Tuesday while Ether popped to $179 billion per token. The prices weren’t real, of course. But they highlight how vulnerable crypto data providers and exchanges are to glitches and hacks."


Include:


* Known history of when and how the service was started.
"CoinMarketCap’s website announced at approximately 21:36 UTC that the engineering was aware of the incorrect prices but worked to resolve the issue. The issue was deemed resolved at 21:39 UTC on Dec. 15, 2021. CoinMarketCap’s systems are currently all operational."
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.


Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.


== The Reality ==
"Binance Coin was listed at more than $2B, with its actual price at around $527. Shiba Inu’s price shot up to $22,026. Its actual price was around $0.000034." "Bitcoin hit $850 billion this past Tuesday while Ether popped to $179 billion per token. The prices weren’t real, of course. But they highlight how vulnerable crypto data providers and exchanges are to glitches and hacks."
This sections is included if a case involved deception or information that was unknown at the time. Examples include:


* When the service was actually started (if different than the "official story").
"Whether the mistake was due to a security breach or simply a software bug is unclear." "It was an error in the display of the price. Coinbase’s non-tradeable asset data was affected, and assets in Coinbase Wallet were affected."
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.


== What Happened ==
“A drastic volume of users...caused huge pressure in our servers and impacted our price calculation engine,” CoinMarketCap said in an email to Barron’s, adding that the issue was quickly fixed.
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
== Total Amount Lost ==
Several services which relied on CoinMarketCap for price feed information were all impacted by the inaccuracy.
{| class="wikitable"
{| class="wikitable"
|+Key Event Timeline - CoinMarketCap Price Glitch
|+List Of Impacted Services
!Date
!Service Name
!Event
!Impact
!Description
!References
|-
|-
|December 15th, 2021 2:36:00 PM MST
|CoinBase
|Main Event
|Coinbase confirmed that the error only impacted the display of prices and didn't affect trading. The glitch affected non-tradeable asset data on Coinbase and assets in Coinbase Wallet.
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|<ref name="cryptonews-9849" /><ref name="beincrypto-6151" /><ref name=":0" />
|-
|-
|Crypto.com
|
|
|<ref name="cryptonews-9849" />
|-
|TrustWallet
|Multiple users reported incredibly inflated values in the assets of the their wallets.
|<ref name="cryptonews-9849" /><ref name=":1" /><ref name=":0" />
|-
|Yahoo Finance
|
|
|
|<ref name="cryptonews-9849" /><ref name=":0" />
|}
|}
Michael J Knowles reportedly sold Ethereum and paid a high mining fee at the time<ref name="michaeljknowlestwitter-6153" /><ref name="beincrypto-6151" />.
There doesn't appear to be any evidence that material funds were lost in the incident.
== Immediate Reactions ==
CMC acknowledged the issue, stating their engineering team was investigating<ref name="cryptonews-9849" />. The problem affected various crypto platforms reliant on CMC for data, including Crypto.com, Coinbase, Trust Wallet, and Yahoo Finance<ref name="cryptonews-9849" />.
=== Community Reactions ===
Social media reactions ranged from humor to panic, with some joking about the situation while others were concerned, especially those with short positions<ref name="cryptonews-9849" />. Some pointed out the need for reliable price oracles to prevent such incidents. Chainlink (LINK) was mentioned as one popular oracle on the Ethereum blockchain<ref name="cryptonews-9849" />. Additionally, there were suggestions that trading bots using CMC's API may have contributed to the brief market rally during the glitch<ref name="cryptonews-9849" />.


== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?


== Total Amount Lost ==
"This sent traders reeling headfirst into utopia. Many believed they were crypto trillionaires. CoinMarketCap burst their bubble by announcing that a glitch had occurred in its price calculation engine due to the high volume of users on the platform."
No funds were lost.


How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
"Twitter user @michaeljknowles tweeted that he appeared to have $7.7B worth of Ethereum in his Coinbase Wallet and decided to sell, despite the $1.2 miner fee. He only received $48.05."<ref name="michaeljknowlestwitter-6153" /><blockquote>"So @CoinbaseWallet showed my having $7.7 billion worth of Ethereum. I felt that was a tidy profit, so I decided to sell, despite the $1.2 billion miner fee. But so far I’ve only received $48.05! Where’s the rest of my money, @coinbase?".</blockquote>


== Immediate Reactions ==
=== Reactions From CoinMarketCap ===
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
“A drastic volume of users...caused huge pressure in our servers and impacted our price calculation engine,” CoinMarketCap said in an email to Barron’s, adding that the issue was quickly fixed.


== Ultimate Outcome ==
== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
 
 
 
"CoinMarketCap’s website announced at approximately 21:36 UTC that the engineering was aware of the incorrect prices but worked to resolve the issue. The issue was deemed resolved at 21:39 UTC on Dec. 15, 2021. CoinMarketCap’s systems are currently all operational."
 
 
 
As of the latest data, Bitcoin (BTC) is trading at $48,588, up 2.9% in a day but down 3.9% in a week. Ethereum (ETH) is priced at $3,901, unchanged in a day and up 2.1% in a week according to CoinGecko.<ref name="cryptonews-9849" />


== Total Amount Recovered ==
== Total Amount Recovered ==
Line 87: Line 162:
What parts of this case are still remaining to be concluded?
What parts of this case are still remaining to be concluded?
== Individual Prevention Policies ==
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}
{{Prevention:Individuals:No Individual Funds Lost}}
 
Trusting any central authority is a potential point of failure. In addition to going offline, the source could provide inaccurate information. Care needs to be taken to avoid making any decisions based on a single source.


{{Prevention:Individuals:End}}
{{Prevention:Individuals:End}}


== Platform Prevention Policies ==
== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}
{{Prevention:Platforms:No Platform Funds Lost}}


{{Prevention:Platforms:End}}
{{Prevention:Platforms:End}}


== Regulatory Prevention Policies ==
== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}
{{Prevention:Regulators:No Funds Were Lost}}


{{Prevention:Regulators:End}}
{{Prevention:Regulators:End}}


== References ==
== References ==
<references><ref name="beincrypto-6151">[https://beincrypto.com/coinmarketcap-makes-new-crypto-billionaires-due-to-a-glitch/ https://beincrypto.com/coinmarketcap-makes-new-crypto-billionaires-due-to-a-glitch/] (Jan 26, 2022)</ref>
<references>
 
<ref name="beincrypto-6151">[https://beincrypto.com/coinmarketcap-makes-new-crypto-billionaires-due-to-a-glitch/ CoinMarketCap Briefly Makes New Crypto Billionaires Due to a Glitch - BeInCrypto] (Jan 26, 2022)</ref>
<ref name="barrons-6152">[https://www.barrons.com/articles/bargains-tech-growth-stocks-51642793260 Tech Stocks Got Hit Hard. Where to Find Bargains Now. | Barron's] (Jan 26, 2022)</ref>
<ref name="barrons-6152">[https://www.barrons.com/articles/bargains-tech-growth-stocks-51642793260 Tech Stocks Got Hit Hard. Where to Find Bargains Now. - Barron's] (Jan 26, 2022)</ref>
 
<ref name="michaeljknowlestwitter-6153">[https://twitter.com/michaeljknowles/status/1470879181114417157 Michael J Knowles - "So @CoinbaseWallet showed my having $7.7 billion worth of Ethereum. I felt that was a tidy profit, so I decided to sell, despite the $1.2 billion miner fee. But so far I’ve only received $48.05! Where’s the rest of my money, @coinbase?" - Twitter] (Jan 27, 2022)</ref>
<ref name="michaeljknowlestwitter-6153">[https://twitter.com/michaeljknowles/status/1470879181114417157 @michaeljknowles Twitter] (Jan 27, 2022)</ref>
<ref name="barrons-6154">[https://web.archive.org/web/20211218062635/https://www.barrons.com/articles/bitcoin-ether-prices-coinbase-coinmarketcap-51639789065 Crypto Goes Briefly Haywire. That’s No Joke. - Barron's] (Jan 31, 2022)</ref>
 
<ref name="cryptonews-9849">[https://cryptonews.com/news/coinmarketcap-glitch-sent-btc-eth-billions-affected-coinbase-cryptocom-yahoo-finance.htm CoinMarketCap Glitch 'Sent' BTC, ETH to Billions; Affected Coinbase, Crypto.com - CryptoNews] (Dec 1, 2022)</ref>
<ref name="barrons-6154">[https://www.barrons.com/articles/bitcoin-ether-prices-coinbase-coinmarketcap-51639789065 Crypto Goes Briefly Haywire. That’s No Joke. | Barron's] (Jan 31, 2022)</ref>
</references>
 
<ref name="cryptonews-9849">[https://cryptonews.com/news/coinmarketcap-glitch-sent-btc-eth-billions-affected-coinbase-cryptocom-yahoo-finance.htm CoinMarketCap Glitch 'Sent' BTC, ETH to Billions; Affected Coinbase, Crypto.com] (Dec 1, 2022)</ref></references>

Latest revision as of 11:55, 2 January 2024

Notice: This page is a new case study and some aspects have not been fully researched. Some sections may be incomplete or reflect inaccuracies present in initial sources. Please check the References at the bottom for further information and perform your own additional assessment. Please feel free to contribute by adding any missing information or sources you come across. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

CoinMarketCap Logo/Homepage

On December 15th, 2021, the price on CoinMarketCap glitched. Several services displayed incorrect valuations of user assets, including CoinBase, Crypto.com, TrustWallet, and Yahoo Finance. As far as we can observe, most users discarded the highly unrealistic prices and there was limited material impact from the incident.

TBD: Integrate more sources/information from [1][2]

About CoinMarketCap

CoinMarketCap is a website that tracks the price movement of cryptocurrency.

Traffic Statistics

A recent report by statistics firm HypeStat claimed that every day more than 70 thousand people from countries like the US, India and Japan visit the platform to price-track and stay updated on cryptocurrencies.

Acquisition By Binance Capital Management

Binance Capital Management, which runs cryptocurrency exchanges, acquired CoinMarketCap in April 2020.

The Reality

Trusting any central authority is a potential point of failure. In addition to going offline, the source could provide inaccurate information. Care needs to be taken to avoid making any decisions based on a single source.

What Happened

A glitch on CoinMarketCap (CMC) caused incorrect and exaggerated price data for almost all digital assets, making crypto owners briefly appear as "trillionaires" for a few hours[3]. The glitch showed Bitcoin (BTC) trading at around $779 billion and Ethereum (ETH) at $9.2 billion[3].

Key Event Timeline - CoinMarketCap Price Glitch
Date Event Description
December 14th, 2021 11:56:00 PM MST Twitter Reaction From aesa Twitter user aesa reports that they "just woke up and almost got a heart attack when I opened coin market cap"[4].
December 14th, 2021 2:33:50 PM MST TrustWallet Richness Reddit Thread A post on Reddit suggests that Trust Wallet has caused a significant increase in a user's wealth[5]. The user expresses happiness and shares an image of their financial gain. However, the comments reveal that there might be some technical issues or bugs with Trust Wallet, as some users report incorrect price displays and discrepancies across different exchanges. Despite the humorous tone in the comments, users acknowledge the temporary nature of the situation and express mixed reactions, with some mentioning large amounts in their wallets and others sharing their experiences with the price discrepancies. Overall, the post captures a moment of excitement and confusion within the crypto community related to Trust Wallet and potential glitches in the displayed values[5].
December 14th, 2021 2:59:00 PM MST CoinBase Inflated Value Report CoinBase reports that they are aware of some users seeing inflated prices on non-tradable assets via their platform[6].
December 14th, 2021 3:06:00 PM MST CoinMarketCap Tweet CoinMarketCap tweets to ask the community "How did it feel to be a trillionaire for a couple hours?"[7].
December 14th, 2021 3:11:00 PM MST Michael J Knowles Tweet "So @CoinbaseWallet showed my having $7.7 billion worth of Ethereum. I felt that was a tidy profit, so I decided to sell, despite the $1.2 billion miner fee. But so far I’ve only received $48.05! Where’s the rest of my money, @coinbase?"[8].
December 14th, 2021 3:23:58 PM MST InvestorPlace Article Published InvestorPlace reports a glitch in CoinMarketCap's crypto prices causing widespread confusion among users of Trust Wallet and Coinbase. The glitch displayed inaccurate data, showing massive spikes in gains for some coins, with values reaching millions or billions of dollars[2]. Shiba Inu even appeared above Bitcoin in market capitalization. CoinMarketCap's website showed Bitcoin at over $836 billion and a market cap of $16 quintillion, despite starting the day at around $42,000. The glitch triggered a social media frenzy with over 16,000 posts under the #CoinMarketCap hashtag. The reliance on CoinMarketCap for data was evident, affecting other websites like Yahoo Finance and Trust Wallet, which also showed similar price fluctuations. CoinGecko, a competitor, continued displaying normal crypto price data. CoinMarketCap acknowledged the glitch, stating that its engineering team was investigating the price issues. While some speculated on the cause, it was emphasized that Coinbase reassured users that it was a display issue only[2].
December 14th, 2021 4:26:00 PM MST Jack Mull Quit His Job Twitter user J4CKMULL reportedly quit his job and bought a lambourghini based on the CoinMarketCap prices[9].
December 14th, 2021 4:55:00 PM MST CoinMarketCap Tweet In response to a user reporting they had left their job and bought a lambourghini, CoinMarketCap recommends to tell their boss it was a prank[10].
December 15th, 2021 2:03:00 AM MST CryptoNews Article CryptoNews reports that A glitch on CoinMarketCap (CMC) caused incorrect and exaggerated price data for almost all digital assets, making crypto owners briefly appear as "trillionaires" for a few hours. The glitch showed Bitcoin (BTC) trading at around $779 billion and Ethereum (ETH) at $9.2 billion. CMC acknowledged the issue, stating their engineering team was investigating. The problem affected various crypto platforms reliant on CMC for data, including Crypto.com, Coinbase, Trust Wallet, and Yahoo Finance.

Social media reactions ranged from humor to panic, with some joking about the situation while others were concerned, especially those with short positions. Some pointed out the need for reliable price oracles to prevent such incidents. Chainlink (LINK) was mentioned as one popular oracle on the Ethereum blockchain. Additionally, there were suggestions that trading bots using CMC's API may have contributed to the brief market rally during the glitch.

As of the latest data, Bitcoin (BTC) is trading at $48,588, up 2.9% in a day but down 3.9% in a week. Ethereum (ETH) is priced at $3,901, unchanged in a day and up 2.1% in a week according to CoinGecko.

December 15th, 2021 2:36:00 PM MST CoinMarketCap Website Announcement CoinMarketCap announced that "engineering was aware of the incorrect prices but worked to resolve the issue".
December 15th, 2021 2:39:00 PM MST Issue Is Deemed Resolved The issue was deemed to be resolved. "CoinMarketCap’s systems are currently all operational."
December 17th, 2021 5:59:00 PM MST Barron's Article Barron's reports on the incorrect prices[11].
December 18th, 2021 7:45:00 AM MST BeInCrypto Article BeInCrypto reports on CoinMarketCap experiencing a glitch in pricing data on December 15, 2021, causing inaccurate information to be fed to Coinbase and Trust Wallet users. The glitch led to inflated prices for Bitcoin, Ethereum, and SHIB, with some users briefly thinking they had become billionaires. Bitcoin was reported at $850 billion, and Ethereum at $179 billion during the two-hour glitch. CoinMarketCap attributed the issue to a glitch in its price calculation engine due to high user volume. Twitter users reported anomalies in wallet balances, with one user claiming $7.7 billion worth of Ethereum but receiving only $48.05 upon selling. The incident raises concerns about the reliability of market data sources, emphasizing the need for transparent and credible information for institutional and regulatory confidence.
January 23rd, 2022 9:32:00 AM MST Barron's Mention Barron's mentioned the incorrect prices in an unrelated article on tech stocks[12].

Technical Details

The impacts of the incident were limited by the incredibly unrealistic nature of the price data and the short time frame. The issue was resolved within a couple of hours.

"Crypto market data firm CoinMarketCap experienced a glitch in pricing data for approximately two hours on Wednesday, Dec. 15, 2021. Bitcoin shot to $850B, while Ethereum supposedly hit $179B. This sent traders reeling headfirst into utopia. Many believed they were crypto trillionaires. CoinMarketCap burst their bubble by announcing that a glitch had occurred in its price calculation engine due to the high volume of users on the platform."


"Binance Coin was listed at more than $2B, with its actual price at around $527. Shiba Inu’s price shot up to $22,026. Its actual price was around $0.000034." "Bitcoin hit $850 billion this past Tuesday while Ether popped to $179 billion per token. The prices weren’t real, of course. But they highlight how vulnerable crypto data providers and exchanges are to glitches and hacks."


"CoinMarketCap’s website announced at approximately 21:36 UTC that the engineering was aware of the incorrect prices but worked to resolve the issue. The issue was deemed resolved at 21:39 UTC on Dec. 15, 2021. CoinMarketCap’s systems are currently all operational."


"Binance Coin was listed at more than $2B, with its actual price at around $527. Shiba Inu’s price shot up to $22,026. Its actual price was around $0.000034." "Bitcoin hit $850 billion this past Tuesday while Ether popped to $179 billion per token. The prices weren’t real, of course. But they highlight how vulnerable crypto data providers and exchanges are to glitches and hacks."

"Whether the mistake was due to a security breach or simply a software bug is unclear." "It was an error in the display of the price. Coinbase’s non-tradeable asset data was affected, and assets in Coinbase Wallet were affected."

“A drastic volume of users...caused huge pressure in our servers and impacted our price calculation engine,” CoinMarketCap said in an email to Barron’s, adding that the issue was quickly fixed.

Total Amount Lost

Several services which relied on CoinMarketCap for price feed information were all impacted by the inaccuracy.

List Of Impacted Services
Service Name Impact References
CoinBase Coinbase confirmed that the error only impacted the display of prices and didn't affect trading. The glitch affected non-tradeable asset data on Coinbase and assets in Coinbase Wallet. [3][1][2]
Crypto.com [3]
TrustWallet Multiple users reported incredibly inflated values in the assets of the their wallets. [3][5][2]
Yahoo Finance [3][2]

Michael J Knowles reportedly sold Ethereum and paid a high mining fee at the time[8][1].

There doesn't appear to be any evidence that material funds were lost in the incident.

Immediate Reactions

CMC acknowledged the issue, stating their engineering team was investigating[3]. The problem affected various crypto platforms reliant on CMC for data, including Crypto.com, Coinbase, Trust Wallet, and Yahoo Finance[3].

Community Reactions

Social media reactions ranged from humor to panic, with some joking about the situation while others were concerned, especially those with short positions[3]. Some pointed out the need for reliable price oracles to prevent such incidents. Chainlink (LINK) was mentioned as one popular oracle on the Ethereum blockchain[3]. Additionally, there were suggestions that trading bots using CMC's API may have contributed to the brief market rally during the glitch[3].


"This sent traders reeling headfirst into utopia. Many believed they were crypto trillionaires. CoinMarketCap burst their bubble by announcing that a glitch had occurred in its price calculation engine due to the high volume of users on the platform."

"Twitter user @michaeljknowles tweeted that he appeared to have $7.7B worth of Ethereum in his Coinbase Wallet and decided to sell, despite the $1.2 miner fee. He only received $48.05."[8]

"So @CoinbaseWallet showed my having $7.7 billion worth of Ethereum. I felt that was a tidy profit, so I decided to sell, despite the $1.2 billion miner fee. But so far I’ve only received $48.05! Where’s the rest of my money, @coinbase?".

Reactions From CoinMarketCap

“A drastic volume of users...caused huge pressure in our servers and impacted our price calculation engine,” CoinMarketCap said in an email to Barron’s, adding that the issue was quickly fixed.

Ultimate Outcome

"CoinMarketCap’s website announced at approximately 21:36 UTC that the engineering was aware of the incorrect prices but worked to resolve the issue. The issue was deemed resolved at 21:39 UTC on Dec. 15, 2021. CoinMarketCap’s systems are currently all operational."


As of the latest data, Bitcoin (BTC) is trading at $48,588, up 2.9% in a day but down 3.9% in a week. Ethereum (ETH) is priced at $3,901, unchanged in a day and up 2.1% in a week according to CoinGecko.[3]

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

This case does not appear to have resulted in a loss to any individual.

Trusting any central authority is a potential point of failure. In addition to going offline, the source could provide inaccurate information. Care needs to be taken to avoid making any decisions based on a single source.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

This case does not appear to have resulted in a loss to any platform.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

It does not appear that any funds were lost in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. ↑ 1.0 1.1 1.2 CoinMarketCap Briefly Makes New Crypto Billionaires Due to a Glitch - BeInCrypto (Jan 26, 2022)
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 CoinMarketCap Shows Crypto Spike, Bitcoin ‘Flippening’ in Apparent Glitch - InvestorPlace (Jan 2, 2024)
  3. ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 CoinMarketCap Glitch 'Sent' BTC, ETH to Billions; Affected Coinbase, Crypto.com - CryptoNews (Dec 1, 2022)
  4. ↑ aesa - "I just woke up and almost got a heart attack when I opened coin market cap. almost got me @CoinMarketCap." - Twitter (Sep 6, 2023)
  5. ↑ 5.0 5.1 5.2 Trust wallet just made me a very rich man folks. - WallStreetBetsCrypto Reddit (Dec 29, 2023)
  6. ↑ Coinbase Support - "We're aware some customers are seeing inflated values for non-tradable crypto assets on http://Coinbase.com and Coinbase Wallet. This is a display issue only and does not impact trading." - Twitter (Sep 6, 2023)
  7. ↑ CoinMarketCap - "How did it feel to be a trillionaire for a couple hours?" - Twitter (Sep 6, 2023)
  8. ↑ 8.0 8.1 8.2 Michael J Knowles - "So @CoinbaseWallet showed my having $7.7 billion worth of Ethereum. I felt that was a tidy profit, so I decided to sell, despite the $1.2 billion miner fee. But so far I’ve only received $48.05! Where’s the rest of my money, @coinbase?" - Twitter (Jan 27, 2022)
  9. ↑ J4CKMULL - "I quit my job and bought a lamborghini, this ain't no laughing matter" - Twitter (Sep 6, 2023)
  10. ↑ CoinMarketCap - "just tell your boss It was a prank" - Twitter (Sep 6, 2023)
  11. ↑ Crypto Goes Briefly Haywire. That’s No Joke. - Barron's (Jan 31, 2022)
  12. ↑ Tech Stocks Got Hit Hard. Where to Find Bargains Now. - Barron's (Jan 26, 2022)
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