Analytical service CoinGecko presented the so-called “Trust Score” (Trust Score), which shows the normalized trading volumes of cryptocurrency exchanges. This was reported to BlockchainJournal by service representatives.

Trust Score methodology involves the complex use of various techniques, including the analysis of web traffic and order logs (the spread between the Bid and Ask prices, an estimate of the volume of the order required for price movement by 2%), as well as Bitwise data for ten trustworthy exchanges.

The new metric is involved in the section of the stock exchanges :

Binance exchange normalized trading volumes almost correspond to those stated (24h Volume)

As you can see, the highest volume of real trading at the exchange Binance. The lower the list, the greater the difference between the adjusted trading volume and the stated one. For example, the OKEx exchange is marked as “using methods like Transaction-fee mining, or zero commissions,” resulting in abnormally high trading volumes.

Also, by default, analytical data for individual coins is displayed in accordance with the Trust Score methodology.

“If a trading platform announces a high total trading volume and, therefore, is on the top of exchanges by this criterion, we expect that there are a large number of users ,” said CoinGecko co-founder Bobby Ong. “ However, research results using SimilarWeb tools have shown that in fact many exchanges with high volumes actually have a very low number of visitors.”

In the coming months, CoinGecko plans to improve the Trust Score by adding additional metrics, including analysis of trading history, hot and cold wallets, cybersecurity systems, data from social media, and an assessment of the quality of the API.

“Using Trust Score, the algorithm gives priority to exchanges with a narrow spread and a significant depth of the market, rather than declared trading volumes,” Ong added.

Recall that in March, Bitwise Asset Management told the US Securities and Exchange Commission that 95% of trading volumes on unregulated stock exchanges are fake and devoid of any economic sense.

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