CoinMarketCap dismissed claims that its circulating supply of Shiba Inu was incorrect, explaining an internal audit has refreshed the previously static SHIB supply.
After changing the circulating supply of SHIB to 549 trillion from a previous figure of 394 trillion, many SHIB hodlers became confused over the supply changes, and even accused CoinMarketCap of manipulation.
The coin tracker provided answers in the latest episode of the CoinMarketRecap podcast. Its host Connor Sephton said he received “hundreds and hundreds of messages about Shiba Inu” ahead of the episode. Here’s what it had to say.
CoinMarketCap explains SHIB Circulating Supply Change
Sephton first asked CoinMarketCap why it changed the supply. The tracker said:
We received feedback from some of our users that our circulating supply for SHIB was static and not updating dynamically, which prompted an internal audit. After a review, we refreshed the data on the backend and the figures are now updating dynamically. It bears mentioning that the audit has brought the circulating supply in line with figures from several other data sources.
While it doesn’t explicitly name the sources, CoinMarketCap may be referencing CoinGecko - another cryptocurrency price tracker with a similar supply.
CoinMarketCap stated that the SHIB supply now updates dynamically. However, the figure given of 549,095,509,738,353 SHIB has not moved since October 28 - the day the tracker made the change. This is despite the large-scale SHIB burns that have happened since. It remains unclear what the nature of “updating dynamically” means in terms of regular updates.
The tracker was then asked why it did not make a public statement regarding the change. It said:
The change was communicated in the same way supply updates for every other coin are done. Directly on the website.
We’re unsure as to whereabouts on the website CoinMarketCap refers to. Aside from the actual circulating supply, we cannot find any reference to its previous supply or why it updated the supply on the Shiba Inu page.
In a follow-up, Sephton asked CoinMarketCap whether it should have a clearer disclosure about how it calculates this supply. CoinMarketCap stated:
[We] adhere to the usual standards of practice - two supply updates. And [our] methodology has been in the public domain for many years.
CoinMarketCap’s methodology is available on the website, where it lists various factors used to verify the circulating supply of cryptocurrencies. CoinGecko, however, breaks down its methodology specific to SHIB.
The methodology also states the site verifies supply “through communication with the project’s team”. According to ShibInformer, “No one ever asked the SHIB team what was the actual supply.”
Finally, Sephton asked CoinMarketCap if the listed supply is wrong, or needs to be fixed. It said:
The circulating supply of 550 trillion is correct, based on its methodology, and matches the calculations made by other data sources as well.
Accounting for the burn wallets and the India Crypto Covid Relief fund wallets (although whether this is really out of circulation is up for debate), it does seem like the 549 trillion SHIB supply is accurate. However, confusion still remains among the ShibArmy.
Read More: Why The Shiba Inu Coin Supply Isn't As Concentrated As You'd Think
Image: Executium/Amelia Spink
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