In a bid to bring more transparency to the crypto trading environment, market data aggregator CoinGecko has upgraded its “Trust Score” metric. Similarly, CoinGecko launches ‘Trust Score 2.0’ to enhance transparency in exchanges.
Globalexchange- The company launched Trust Score in May 2018 to fight the alarming trend of exchanges reporting fake amounts of trading.
However, the firm stated that 50 percent of its Trust Score 2.0 is based on the liquidity of transactions, with 20 percent based on technical coverage and 30 percent based on the operating scale.
However, the new upgraded Trust Score to version 2.0 will incorporate major measurements categories including:
Liquidity
API Technical Coverage
Scale of Operations
Cryptocurrency Reserves
Regulatory Compliance
TM Lee, co-founder of CoinGecko said:
“As one of the world’s largest cryptocurrency data aggregators, it is our duty to provide critical and actionable data to our users. With the launch of Trust Score 2.0, progress is being made to promote transparency amongst cryptocurrency exchanges. We look forward to innovating further to better evaluate cryptocurrency Global exchanges based on a comprehensive set of data.”
Also, CoinGecko disclosed that they would rank exchanges on a scale of 1-10, where the exchange of 10 would be regarded as the best and 1 the worst.
With this update, the exchange rankings of CoinGecko will be far more autonomous of the reported quantity of an exchange.
According to its new metrics, the firm has identified the top five crypto exchanges as:
Binance
Bitfinex
Bittrex
Poloniex
Coinbase Pro
Also, the company informed that it has partnered with Bitfury’s Crystal Blockchain to conduct an on-chain analysis of exchanges’ Bitcoin, Ethereum and Bitcoin Cash reserves.
“Cryptocurrency Reserves and Regulatory Compliance categories are not included in the overall Trust Score 2.0 calculations for now but are considered candidates for inclusion in future Trust Score algorithm updates,” the company released in a blog post.
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