Educational Byte: Why You Can't Always Trust Token Prices on CoinMarketCap | HackerNoon
Briefly

Price aggregators, such as CoinMarketCap and CoinGecko, compile price data from various exchanges to provide users with what appear to be real-time token values. However, because they may not aggregate data from all exchanges and some exchanges report inaccurately, the prices shown can be misleading. Factors like supply and demand, liquidity variations, and occasional deliberate data manipulation can create situations where displayed prices do not reflect true market activity. This discrepancy can lead to financial losses for users acting on seemingly reliable data.
Price aggregators like CoinMarketCap and CoinGecko calculate average prices based on data from multiple exchanges, but their methods can mislead users due to various factors.
Discrepancies in liquidity and supply and demand can cause average prices to deviate significantly from the actual trading value of tokens on exchanges.
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