2 Aug

Chainlink tops DeFi ranking at CoinMarketCap amid “unfounded criticism

The CoinMarketCap cryptosorting resource faces criticism after listing Chainlink (LINK) as the largest DeFi token by market capitalization.

The website’s new DeFi section lists what executives consider to be the most important altcoins in the space, which is attracting considerable interest from traders and investors.

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Speaking to Cointelegraph, CoinMarketCap’s Head of Research, Gerald Chee, said he employs a “strict methodology” to determine whether a given token qualifies as “DeFi” and therefore is eligible for inclusion in their rankings.

However, Chainlink, a smart contract platform, is an unlikely addition; following the section’s launch, several commentators argued that LINK is not strictly a DeFi token.

“Chainlink is currently number 1 in defi tokens thanks to Coinmarketcap, which decided it is a defi token and added it to the list,” tweetted analyst and speaker Jason Fernandes ironically on Monday.

“Tune in next week, when Binance Coin becomes the second largest defi token.”

DeFi, or “decentralized finance”, has formed something of a craze in business circles this year, reminiscent of the similar attention paid to stablecoins and ICO tokens in previous years.

As Cointelegraph reported, suspicions have accompanied the rise of the phenomenon; multiple tokens have seen huge gains – and losses – in short order.

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“Baseless and unfounded.”
CoinMarketCap flatly denied any notion that its ratings were fixed or that its methodology was biased.

“The criticism that ‘Chainlink may have paid CMC to move this category up’ is unfounded and unjustified,” Chee said.

“We reject any suggestion that a Bitcoin Cycle project was behind the creation of our ratings page, and once again stress that CMC has never received any compensation for the inclusion of any token or exchange.

He added that Ether (ETH) was also dropped from the list because it did not conform to his methodology.

CoinMarketCap is not unsympathetic to the controversy. Last month, the adjustments to the ratings caused an outcry, not only about the tokens but about other components of the crypto-ecosystem, such as exchanges.