Coin Trust Score: Understanding the Assessment
What is the Coin Trust Score?
The Coin Trust Score is a proprietary, dynamically calculated metric designed to provide a quick, comprehensive, and data-driven assessment of a cryptocurrency or digital asset’s perceived safety, legitimacy, and overall health.
Expressed as a value from 0 to 100, the score helps users gauge the inherent risks and stability of an asset based on a diverse set of real-time market, security, and project-specific data points. A higher score indicates a more robust and trustworthy asset, while a lower score signals significant potential risks, red flags, or critical signs of project abandonment.
How is the Trust Score Calculated?
The score begins at a neutral starting point and is then adjusted by a series of positive and negative factors, drawing from multiple data feeds and proprietary analysis. The calculation method is designed to be harsh on “dead” or extremely risky coins while rewarding assets that demonstrate market liquidity, transparency, and sustained activity.
The 10 Core Pillars of Analysis:
The calculation is broken down into ten critical areas, each contributing to the final score:
1. Market Health and Critical Sanity Checks
This is the most crucial initial assessment. It checks for critical red flags like zero or near-zero market capitalization and extremely low trading volume. Coins failing these fundamental liquidity and valuation tests receive substantial, immediate penalties and are designated as high-risk, effectively filtering out abandoned or worthless assets at the starting gate.
2. Sentiment Indicators
The score integrates external sentiment data, such as a generalized Fear & Greed Index, to reflect the broader emotional state of the crypto market. The asset’s score is adjusted based on whether the prevailing sentiment suggests market exuberance (potential risk) or extreme fear (potential buying opportunity/stability).
3. Price Volatility & Trend
We analyze the asset’s price change over short-term (24-hour) and medium-term (7-day and 30-day) periods. High volatility (large, rapid price changes) generally incurs penalties, as it signals instability. Furthermore, significant negative trends (large price drops over 7 and 30 days) are penalized as they suggest sustained selling pressure or project weakness.
4. Project Longevity (Age)
New projects inherently carry more risk. The score factors in the asset’s age since its creation or first recorded price activity. Newer projects (especially those less than 30 days old) receive penalties that diminish as the project demonstrates longevity and persistence in the market. Unknown or unscrapable age also results in a penalty.
5. Liquidity Ratio
This metric assesses the ease with which an asset can be bought or sold without significantly impacting its price. It measures the relationship between 24-hour trading volume and market capitalization. Low ratios suggest poor liquidity, indicating that the coin may be difficult to trade and is therefore penalized.
6. Exchange Presence & Trust
The assessment looks at the number of different exchanges where the coin is actively traded, as broader availability implies greater legitimacy. Additionally, it analyzes the trust level assigned to those exchanges. A significant proportion of trading volume occurring on low-trust or untrustworthy exchanges results in a penalty.
7. Smart Contract Security
This pillar incorporates data from specialized security providers (like GoPlusLabs) to analyze the underlying smart contract. Major red flags such as the presence of a honeypot (a contract designed to prevent selling), excessive owner concentration (a large percentage of the supply held by a few addresses), or a non-verified, closed-source contract result in severe deductions.
8. Recent Price Momentum
While volatility checks daily movement, this factor specifically looks at the sustained price performance over the last 30 days. Significant negative momentum (large price declines) indicates an asset struggling to maintain its value, resulting in a penalty.
9. Volume Collapse vs. ATH Volume
This calculation compares the current 24-hour trading volume to the asset’s All-Time High (ATH) trading volume. If the current volume has dramatically collapsed relative to its historical peak, it suggests a significant, sustained loss of interest and market participation, leading to a penalty.
10. Market Inactivity
The score heavily penalizes assets showing signs of abandonment or neglect. This includes checks for:
- Zero 24-hour trading volume: An immediate, heavy penalty for complete market silence.
- Time since last update: Assets that haven’t registered a data update or price movement in over 7, 30, 90, or 180 days receive escalating penalties, treating prolonged silence as a major red flag.