The cryptocurrency Marinade Deployed SOL (MSOL), linked to the Solana ecosystem (SOL), appreciated more than 200% (19) this Friday according to data from CoinMarketCap. Despite the high, the currency sparked revolt among many traders following the project.
While unknown to most cryptocurrency traders, the project is one of many used in Solana’s DeFi ecosystem.
However, Solana is a coin that is going through a bad phase as it has started to lose value since the bankruptcy of the FTX brokerage, so not many traders stay connected in the ecosystem of innovations.
Either way, MSOL’s rise is at odds with the actual market price, suggesting that a CMC-indexed broker was misquoting.
After cryptocurrency surges more than 200%, traders are blaming Coinbase and revolting
Marinade Staked SOL is listed on major exchanges such as Coinbase, Kraken, and Gate and trades at around $22.00. That is, when a trader goes to check the coin price on CoinMarketCap and sees the quote above $70 per unit, he thinks his broker is cheating him.
On CoinMarketCap itself, some traders left “affectionate” messages for Coinbase, even claiming that the brokerage was staging a coup against them.
O live coins consulted the MSOL quote on Coinbase and confirmed that the price of the coin on the platform remains at $22 per unit.
With divergence in the spotlight and irate traders, what is the right MSOL price?
It is not common for the price of a cryptocurrency to skyrocket in the market, say on just one brokerage, leaving customers on other platforms at a loss.
This is because in such a situation, the fastest traders could arbitrate between the markets and profits, i.e. the situation quickly corrects itself.
So the live coins consulted MSOL’s price on CoinMarketCap’s main competitor, CoinGecko, where Marinade’s price remains just $22. The price is the same as that consulted on the major exchanges listing the Solana network token.
In addition, we tried to understand how MSOL prices are constructed in the market, a currency linked to Solana. With this, they made it clear in a recent publication on Twitter of the project that the price fluctuates according to SOL.
In the commentary, Marinade Finance says that there is no way the mSOL price can deviate significantly from the SOL, as there are balances in the project’s DeFi at most every three days.
“If the price of $SOL goes up, $mSOL goes up some more. When the price of $SOL falls, $mSOL falls slightly less. This is because Marinade automatically adds the SOL net rewards to the mSOL price after each period (2-3 days).
📈 When $SOL price rises, $mSOL goes up a bit.
📉 When $SOL price drops, $mSOL goes down a little less.
👉 That’s because Marinade automatically adds the SOL liquid staking rewards to the price of mSOL after each time slot (2-3 days). pic.twitter.com/QlXVJ1oZda
— Marinade Finance (@MarinadeFinance) May 10, 2023
Finally, despite the anger of traders, Coinbase is not at fault and did not even manipulate the price of the token, which is still quoted above SOL today at $20 per unit.
Apparently, a brokerage that sends price information to CoinMarketCap has been reporting wrong data, and traders should remain alert to situations like this.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
