How do we stay unbiased?
Now we hear you thinking. It’s very nice you guys rate Coins & Tokens. BUT: WHO SAYS YOU DON’T RATE THEM IN THE FAVOUR OF THE COINCHECKUP TEAM.
Don’t be like them Credit Rating agencies!
We don’t think many investors have a very positive opinion on the credit rating agencies: Standard & Poor and Moody's. They got paid in order to give good credit rating by the very same companies they are rating in the first place. This is obviously likely to result in biased ratings. The one who pays more, gets a more solid rating.
Back in June '17 when we started working on CoinCheckup’s rating formula it was directly clear for us we never wanted to get paid for giving out better ratings. It’s simply a 100% NO-GO! We believe this would be the most unfair way of making a living, neither would it add any value to our visitors.
So how does a coin get their rating on CoinCheckup?
How can we make sure we stay unbiased? It’s simple. We apply a fully transparent formula on every coin/token.
Not all coins/tokens are the same, so the formula is different for a centralized, semi-decentralized, or decentralized coin. That being said, the formula is always the same for each type of coin and our ratings are always transparent.
IF you go to a detail page, and go to “Analysis”, you’ll find the “Scores” tab. If you click “SEE FULL DETAILS”, you’ll see exactly how a Coin gets to the total score.
When analysing the scores please take into account:
- We’re aiming at making the crypto-space more transparent, this is why we’ve shared our formula publicly
- We score based on info listed on official sources of each coin (website, whitepaper, blog, FAQs, bitcointalk thread, etc)
- If a coin is not transparent about the information and does not make it available publicly, this will affect their rating as it cannot get scored.
- We use statistical percentiles for most of the dimensions where this applies, so we eliminate the bias of setting fixed ranges. This way we can compare coins with each other and allow the industry to raise the bar by itself
- We offer all of our users the possibility to request changes to coin information as long as it can be publicly verified
- We believe coins should be transparent in communication with their users, thus we score this aspect
- We believe coins should keep their followers updated with progress on their projects, so we track this as well (automated)
- We believe that for centralized/semi-centralized coins, the team & advisors behind a coin play a significant role in completing the milestones, thus we look at them both in terms of structure and previous experience
- We look at Github activity to track that development activity is sustained throughout the lifetime of a project (automated)
- We look at both product itself but also at the coin strength compared to how all others perform in the market (automated)
The Rating Formula
In order to give you more transparency you’ll find the full Coin scoring formula below.
We want CoinCheckup to be a platform of the community. A platform where we, as a community, can find those Unique Coins that didn’t grow yet, and a Platform where we, as a community, can find Scams. Support us, and we keep supporting you.
You’ll find our current formulas in this Google Doc (as well as the deprecated old formula). We left the Comment function open for you. So you and the rest of the CoinCheckup community can share your feedback.