CoinGecko Introduces “Trust Score” to Combat Fake Exchange Volume Data
@coingecko is a crypto market data aggregator who is also present on Steem with an active account. They have unveiled a new "Trust score" for ranking exchanges.
Fake exchange volume data is a major issue in the cryptocurrency space with a number of exchanges proven to fake their volumes. In order to the combat this problem CoinGecko is taking the necessary steps and i'm glad that they are doing it as it's a platform I generally follow for market information.
To combat fake exchange volume data, we are launching a new rating algorithm called “Trust Score” on our site which will be implemented universally on our Exchange Overview and Coin pages from Monday, 13 May 2019. In short, “Trust Score” is a blended formula that takes into account exchanges’ reported trading volume, web traffic, and order book depth.
This market is unregulated and many unregulated exchanges engage in unfair practices in order to inflate their numbers. This creates many issues for users looking to trade legitimately.
Exchange manipulation, wash trading are known factors that add to the growing problem in this industry. With this move CoinGecko becomes one of the top sites that I will be recommending to all my friends looking to get their crypto market data.
But they are not going to stop here. Their release adds that:
Moving forward we will be adding more metrics to our “Trust Score” to improve its robustness. Here are some of the data which we will be tracking further in the coming months:
- Trade history analysis
- API quality analysis
- Cybersecurity analysis
- Hot & Cold wallet analysis
- Social Media analysis
- Exchange support turnover time
- User Reviews
- Licensing & Regulations
They have more information in their official press release here.
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They're also on Steem and posted about just this yesterday.
It's very good news for us and stop fake data.
Posted using Partiko Android
What is measured will be manipulated, we're making sure it's now harder for them to do so.
Beautiful improvement, fake data volumes on exchange needs to be closely monitored.
Posted using Partiko iOS
We're are actively improving the algorithm by the day. Crypto is still very much a wild west when compared to traditional markets, we're committed to allow users making the best-informed decision with the most truthful data.
Wow bit coin . But altcoin no up
Posted using Partiko Android
Thank you for the shout out! Love to hear your idea on the Trust Score.