Coingecko Updates Its Exchange ‘Trust Score’ Algorithm By Adding Hacken’s Cybersecurity Score
- Cryptocurrency data aggregator, Coingecko, partners with Hacken, a cybersecurity firm, to upgrade its exchanges’ Trust Score.
- The partnership sees Coingecko apply Hacken’s cybersecurity scores to create a new algorithm that “improves the robustness of exchanges ranking algorithm” on the aggregating platform.
The crypto space is increasingly accepting centralized exchanges due to the highly liquid marketplace and margin trades offered on them. However, in the past few years, hacks and scams on these centralized custodial and exchange platforms have skyrocketed, wiping off users' funds with them.
Coingecko’s new Trust Score update aims to reduce these errors.
With the rise of black hat hackers in the crypto community, Duyma Budorin, CEO of Hacken, believes the partnership with Coingecko will “raise awareness of cybersecurity practices” to users when they select their trading platform of choice.
According to a released statement to the BEG desk, the new algorithm is imperative that these centralized exchanges will start taking proactive measures to ensure cybersecurity is cared for in the best possible way – or else see their rankings drop.
TM Lee, CEO of Coingecko, said:
“With Hacken’s expert help in evaluating exchanges’ cybersecurity practices, we hope to bring awareness of the urgent need to improve cybersecurity and protect user funds through the abolition of unsafe cybersecurity practices.”
Hacken’s Cybersecurity Score (CSS) will measure the ability of an exchange to maintain a secure operating environment to protect users’ funds. The CSS takes on a fifth of the weight on Coingecko’s Exchange Trust Score and will evaluate exchanges monthly on a ranking scale of 1-10 by checking the “server & user security, bug bounty for crowdsourced preventive measures, as well as historical hack cases.”
Last year in May, BEG reported the launch of Coingecko’s Trust Score to rank centralized crypto exchanges. This opened up a new system to rate exchanges by adding several crucial factors to the algorithm (apart from the Trading Volume), including daily web traffic volume, liquidity provision, trading activity, the scale of operations, and technical expertise among some other factors.
The Trust score has since gained widespread community support as more data aggregators such as Coinmarketcap (recently purchased by Binance) also dived in to create better ranking scores for exchanges.