CoinGecko the market data aggregator has upgraded its “Trust Score” metric in their aim to bring more transparency to the crypto trading arena.
Beyond just liquidity, the company’s re-tooled scoring system will evaluate global cryptocurrency exchanges using more complex metrics.
CoinGecko co-founder Bobby Ong said the firm has significantly increased tremendously as a growth of 706 percent is seen in the number of exchanges it is tracking, which is going from 45 exchanges 18 months ago to 363 and now the recent 706%.
In order to combat fake trading volume among cryptocurrency exchanges, Coingecko first revealed the Trust Score system in May 2019 . Trust Score 2.0, the new upgrade to the scoring system will look at four additional major measurements, including exchanges’ API technical coverage, scale of operations, estimated cryptocurrency reserves and regulatory compliance while applying the process.
According to Coingecko co-founder, TM Lee said in a statement that:
“Progress is being made to promote transparency amongst cryptocurrency exchanges with the introduction of Trust Score 2.0 ” .
“With a comprehensive set of data, we look forward to innovating further to evaluate cryptocurrency exchanges in a much better way.
CoinGecko has identified the top five crypto exchanges, according to its metrics with the new scoring system which is now live, They are: Binance, Bitfinex, Bittrex, Poloniex and Coinbase Pro.
According to a blog post released Wednesday, CoinGecko explained that 50 percent of its Trust Score 2.0 is based on exchanges’ liquidity, with 20 percent on technical coverage and 30 percent on scale of operations.
Although, Cryptocurrency Reserves and Regulatory Compliance categories are not included in the overall Trust Score 2.0 calculations for now but are going to be considered candidates for inclusion in future Trust Score algorithm updates,” the company stated in the post.
CoinGecko said it’s working with Bitfury and Coinfirm, for the estimation of cryptocurrency reserve and regulatory compliance to take effect.
Credits: Wolfie ZhaoJOIN OUR COMMUNITY