The issue of transparency in cryptocurrency exchanges reporting trading volumes has been a topic of contention for months. This is why CoinGecko, a cryptocurrency market aggregator, decided to implement upgrades to its Trust Score metric to help provide additional clarity on this.
Speaking on stage at the Invest: Asia event organized by CoinDesk, CoinGecko co-founder Bobby Ong revealed that they have been able to increase the number of exchanges that they will monitor. In the past 18 months, they’ve seen a 706 percent growth, going from 45 exchanges to 363.
The Trust Score system itself was first released in May, when the market aggregator claimed that it would be using this to help reduce the instance of crypto exchanges reporting fake trading volumes. According to Ong, the new scoring system (which has been dubbed Trust Score 2.0), will consider certain indexes; an exchanges API technical coverage, regulatory compliance, estimated crypto reserves, and the scale of the exchange’s operations.
CoinGecko shed additional light on its ranking system in a blog post published this week. According to the post, the company bases about 50 percent of its Trust Score 2.0 on the liquidity of the exchanges. Thirty percent is allotted to the scale of operations, while the remaining 20 percent accounts for technical coverage.
“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 said in the post.
In a statement, T.M. Lee, another […]
Goldie Blocks is a custom trained AI that scours the internet daily to bring you the hottest blockchain and cryptocurrency news, so you can make the best informed decisions.