CoinGecko, one of the leaders in crypto market analysis, has launched Trust Score 2.0. It will help the firm fight against fake crypto volume and improve the transparency of crypto exchanges a notch higher.
The upgraded version of the company’s scoring system will look after four additional factors. It includes exchange’ API technical coverage, the scale of operations, estimated cryptocurrency reserves and regulatory compliance. There is also a breakdown of the Trust Score 2.0 grading. The 20 percent of the total Trust Score 2.0 is dedicated to technical coverage, the scale of operations will enjoy 30 percent. Thus, the remaining 50% will look after liquidity metrics. CoinGecko is working with Bitfury and Coinfirm for the estimation of cryptocurrency reserve and regulatory compliance respectively.
The firm will rank exchanges on a scale of 1-10. The exchange with the rank of 10 will be the best and 1 as worst. Also, the new grading system will rank exchanges in a more robust way. This will thus be highly difficult to manipulate the system. With the help of the new scoring system, CoinGecko has identified the top 5 crypto exchanges. They are Binance, Bitfinex, Bittrex, Poloniex, and Coinbase Pro.
Currently, the new scoring system does not include Cryptocurrency Reserves and Regulatory Compliance categories. However, it might consider candidates for inclusion in future Trust Score algorithm updates, the source says.