Since 2011 I’ve been trading cryptocurrencies and, in my experience as a professional trader, it takes more than clicking a button to execute a trade. From 2011 to 2016, The amount of research that went into each buy or sell I made took on average 6 hours. Traditional research is a time-consuming process, and I found myself constantly reading through online forums, checking multiple group chats, reading through teams, and trying to understand the mechanisms behind the currencies I was buying. I set out with an incredible team of talented financial analysts and quantitative developers to create a platform that gave people like myself up-to-date information across the market. CoinScore will provide crucial information to traders at the click of a button, like what price tokens are trading, what people are saying about the tokens, and how other traders felt about the token.
The founders of this application have spent years trading cryptocurrencies and trying to understand the ins and outs of this asset class. Cryptoassets, while they adopt similar characteristics to traditional financial asset classes, exist in marketplaces that do not sleep. I learned this the hard way throughout my years as a trader, frequently adapting my sleep schedule to Korean markets. Considering I had no tools to aggregate my data feeds, I was forced to manually plug in data into excel sheets or use online plugins, many of which were limited in what data they pulled.
This industry faces critical problems that inhibit its expansion to traditional traders. It faces is problems of providing clean, user interface. It faces problems of data aggregation and easy to use analysis tools. It faces problems of whale and pump group detection. And long term, I have seen it face problems of market manipulation.
These problems were the driving factor behind CoinScore is a platform created by traders for traders.
CoinScore adds professionalism to an industry that is still young. We make it easy for financial analysts to learn how cryptocurrency markets operate and how they can adapt their current strategies to a market that never sleeps.
At the end of the day, there will be one platform that dominates the rest for market intelligence. In the traditional trading marketplace, this is Bloomberg. Because of the development we have already put into this project, CoinScore will be this platform. We have all our research complete and our data pipes in operation, and we’ve had an active demo for four and a half months as of February 2018. Our market competition is months behind us.
On behalf of the CoinScore and our team of analysts and developers around the world, we look forward to serving you and your needs as we create the state-of-the-art, enterprise class, cryptocurrency market intelligence platform.
CoinScore aims to be the leading source of trusted market analysis, product reviews, and information in the cryptocurrency ecosystem. CoinScore currently provides cryptocurrency due diligence assessments, a comprehensive taxonomy, exchange price data, sentiment analysis, and portfolio management tools. The CoinScore founders seek to update and monetize the CoinScore platform and then target potential customers by integrating due diligence scores and investment tools it into the exchange frontends, licensing the data to 3rd parties via an API, and creating a standalone subscription-based asset and product analysis tool for retail investors.
CoinScore attempts to solve the core issue of market mistrust for digital assets. Potential consumers typically cite riskiness, the lack of a value proposition, and complexity of the systems as the primary reasons why they hesitate to buy their first digital assets or invest in assets other than Bitcoin. As the cryptocurrency industry aims to attract mainstream users, a solution is needed to address these concerns. By not only providing intelligence tools but by also focusing on the value proposition/utility of the products and services provided, mainstream consumers can begin to understand the ecosystem enough to invest in it. CoinScore attempts to facilitate this trust in the cryptocurrency ecosystem by providing users with information, analysis, ratings, reviews, and tools for the digital assets.
The features that CoinScore currently has in application include:
A quantitative digital asset methodology that assess the utility, liquidity, risk, quality and the buzz around a digital asset project and their team.
Descriptions and research on the top 100 crypto-assets by market capitalization.
Gross market-cap weighted returns by sector benchmarked against Bitcoin and Ethereum.
A proprietary twitter sentiment analysis tool that provides investors with an indicator to track the buzz around an asset. Provides scores on a range of -1 to 1 to indicate the overall trend of sentiment of an asset.
Google Trends Integration that allows users to track the relative buzz of an asset based on a given keyword.
Portfolio composition, transactions metrics, and asset tracker/watchlist.
Pull news related to a specific digital asset from multiple sources.
See Below:
There are five basic elements of the CoinScore methodology. Dimensions, Inputs, Outputs, Cryptotype and Weights.
Dimensions are the most fundamental component of the CoinScore methodology. These are the data points that we collect for each cryptoproduct. Examples of Dimensions are “How is the protocol controlled”, “Is it a working product” and “Ease of Liquidation”. The Inputs for each Dimension are the range of possible data points. For example, for the Dimension “How is the protocol controlled”, the Inputs could be “Foundation”, “Corporation” or “100% open source”.
Here is a table listing some of the Dimensions and their associated Inputs:
The Outputs are the points assigned to each input, with “Open Source” getting the most points and “Corporation” getting the least. For each Dimension there are a maximum and minimum number of points available among the outputs, which feeds into the calculation of each score.
Here is a table listing the above Dimensions and their associated Outputs, or points:
Cryptotypes are one of three general categories that can be applied to each cryptoproduct. The Cryptotypes are Cryptocurrency, Ecosystem or Digital Asset. A cryptocurrency is any protocol where the creation and distribution of a currency is the main functionality. Cryptocurrencies would include Bitcoin, Monero, Dash and Litecoin. Ecosystems are any protocol with broadly customizable smart contract functionality, such as Ethereum or NEO.
Ecosystems provide the foundation upon which Digital Assets are constructed. Melon and DigixDAO are examples of Digital Assets.
Thus, the first step in the calculation is determining the cryptotype of the cryptoasset and the cryptotype can be either Cryptocurrency, Ecosystem or Digital Asset.
Not all Dimensions are equally relevant to each Cryptotype — which is where Weights are applied. Each Dimension is assigned a weight for each Cryptotype, including a weight of 0% if the dimension is not relevant to a Cryptotype. For example, “Raising funds in Fiat” is not relevant to anything deemed to be a Cryptocurrency Cryptotype.
Here is a table mapping Cryptotypes to our example Dimensions:
Currently, Dimensions have either 100% weight or no weight, but this can easily be changed to other weightings, including weightings greater than 100%, as our methodology evolves.
Finally, Dimensions are mapped to each score (CoinScore, Capital Risk, Liquidity, etc) with the caveat that Dimensions are not necessarily exclusive to any particular score. Therefore, one Dimension could be applied to many scores but note that all Dimensions are mapped to CoinScore and only excluded if it is not relevant to that Cryptotype.
This table illustrates how the Dimensions are mapped to a sample of our scores (1’s indicate that the Dimension is relevant to the score):
This table illustrates how the Dimensions are mapped to a sample of our scores (1’s indicate that the Dimension is relevant to the score):
With Dimensions mapped to scores, three sums are calculated for each score: Total Maximum Points, Total Minimum Points and Actual Points. The Outputs of each Dimension are multiplied by their Weight based on the Cryptotype of the product. The numerator for each score is the difference between Actual Points and Minimum Points and the denominator the difference between Maximum Points and Minimum Points. For the three risk scores, this ratio is subtracted from 1.
We expect defining and refining Dimensions will be an area of continuous improvement as the sphere of cryptoproducts has evolved since we created this. Currently there are 54 Dimensions to our CoinScore methodology but the next update we planned contain many more Dimensions that are far more granular and specific in nature — the goal being to determine the proper input for any particular dimension as objectively as possible. It’s a flexible methodology that can accommodate any number of Dimensions and Scores. Ultimately, we intend to create the functionality that will allow users to create their own custom scores and provide their own assessments of each Dimension.
CoinScore will work with Bitsian to build an internal team around the CoinScore platform that will introduce new features focused on expanding its customer base and driving revenue streams. The goal of the new platform would be to add retail investor focused product assessments as an additional focus to the platform. Outlined below are an initial list of features that could be added to the platform during the new development cycle:
Provide assessments and information regarding Dapps, investment products and DeFi projects. Cryptocurrency investment vehicles will becoming increasingly used to drive the returns of investors’ portfolios. By analysis the cheapest and easiest to use DeFi products, we can expose customers to new options.
Provide wealth management planning tools for retail customers that allows them to map out their crypto-investment strategies. This is an expansion of the portfolio management tools already available in both Bitsian and CoinScore.
If regulatory conditions allow, we can introduce a managed crypto-index fund focused on managing the wealth of our users similar to Personal Capital or Wealthfront.
Provide insight and analysis into the products and digital assets that provide the easiest user experience and most utility to the end users. Curate recommended assets and products based on the users values and preferences.
Provide consumers tools that curates a portfolio and investment strategy based on their budget and risk tolerance.
Use API to directly integrate scores, data, and reviews into 3rd party platforms.
Bad actors are numerous and customers have lost faith in the integrity of asset offerings and market actors. We can introduce an anonymous reporting features that allows the community to report illegal activity, scams and bad actors.
Exchanges are numerous and difficult to sift through for the user. By performing due diligence analysis on exchanges we can mitigate uncertainty around which users can choose from. Additionally, this can showcase Bitsian’s position as a trusted exchange and wallet provider.
We estimate that the current market for cryptocurrency research investment tools has 2 million market participants and is worth $500 million dollars. We have identified several ways to we intend to monetize our platform.
I've spent the last 10 years learning, building, and exploring all things blockchain and cryptocurrencies.
I build and invest in products that harness the power of blockchain and cryptocurrencies and consult for people and companies who want to do the same.
