May 13, 2019 – CoinGecko today made changes to how cryptoasset exchanges are sorted on its website. Instead of sorting exchanges by Total 24 Hours Reported Trading Volume, CoinGecko now sorts exchanges by “Trust Score” which is a combination of normalized exchange volume using web traffic and order book analysis. The change will take effect universally on CoinGecko Exchange Overview and Coin pages.
The trading volume of each exchange is normalized using SimilarWeb traffic analysis and the median of users’ trading volume from Bitwise 10 real-volume exchanges. For orderbook depth analysis, the bid/ask spread and capital required to move the order book by 2% are measured. When combined with normalized trading volume, these metrics provide a better overview of the real liquidity of any given trading pair on an exchange.
“Reported trading volume is currently one of the most rampantly abused metrics by rogue exchanges. CoinGecko’s introduction of “Trust Score” will hopefully put a stop to trading volume abuse and shed more light on exchanges’ real liquidity. Users in the cryptoasset industry deserve to be presented accurate data and CoinGecko as a leading data aggregator has the responsibility to improve transparency in the industry.” – Bobby Ong, co-founder of CoinGecko
The introduction of “Trust Score” is the first step in CoinGecko’s multi-step approach in improving data transparency in the cryptoasset exchange market. As the first data aggregator to implement exchange data analysis, CoinGecko is setting the tone that any cheating or falsified exchange data will no longer be tolerated.
In the coming months, CoinGecko will be further enhancing “Trust Score” by introducing additional metrics. Metrics such as trade history analysis, hot and cold wallet analysis, cybersecurity analysis, social media data, crowdsourced reviews and API quality evaluation will be implemented iteratively.
Additional References
CoinGecko Normalized Exchange Volumes: https://coingecko.com/en/
CoinGecko “Trust Score” Methodology: https://blog.coingecko.com/
CoinGecko “Trust Score” for Exchanges Trading Ethereum
https://www.coingecko.com/en/coins/ethereum/trading_exchanges
About CoinGecko
CoinGecko aims to provide a 360-degree overview of the cryptoasset market. In addition to tracking cryptoasset price, volume and network value, CoinGecko also tracks fundamental data such as community growth, open-source code development, major events and on-chain metrics. CoinGecko’s objective is to elevate participants’ understanding of the fundamental factors that drive the market. CoinGecko is one of the largest and earliest cryptoasset data aggregators, operating since early 2014. It currently tracks over 4,500 tokens from over 300 exchanges. For more information, visit https://www.coingecko.com.
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