[ad_1]
Bitcoinist spoke with On Yavin, CEO of Cointelligence, an educational and data platform for the cryptocurrency space that will soon begin the first evaluation system of cryptocurrency exchanges at the beginning of 2019.
A system for evaluating the exchange of cryptocurrencies is perhaps late for the cryptographic space given the history of hacks, scams and regulatory challenges that present obstacles to mass adoption.
"We have not seen any other trades being evaluated," says Yavin. "We believe it is very important for the industry."
So will your favorite exchange pass the vote? What are the criteria? What exchanges should users avoid? Let's find out more.
& # 39; Nothing can change our ratings except the actual improvements & # 39;
Bitcoinist: first, what is Cointelligence?
Su Yavin: The cointelligence was founded in 2017 as a data layer and central nervous system of the crypto economy. Our mission is to accelerate mass adoption and to clean up cryptographic space. We are doing this by bringing invaluable information to the masses using our research and data analysis that focuses on Ico, STO, coins and exchanges and hunting scams.
Why did you decide to launch an exchange evaluation system? Is there something similar already on the market?
In order to protect crypto investors / traders, it is important to execute trades for trades so that they know what to expect. We want to make sure that investors / traders are avoiding bad trading, are aware of the exchanges that have suffered too many hackers in the past and are aware of problems with exchanges such as difficulty in withdrawing funds, bad customer service, etc. not even a professional evaluation system for the exchanges we are aware of at the moment.
When will it be launched?
We are aiming for January 2019.
Exchanges are obviously very interested in improving their public image. How can users be sure that Cointelligence remains objective and impartial in publishing ratings?
In the last year, we continued to show that NOTHING can influence our ratings. They are not made based on a feeling, but on the basis of an invasive and mathematical system that expresses results in an absolute evaluation, which is based only on the facts.
NONE and NOTHING can change the evaluations except for the actual / factual improvement of the exchange itself. We have been contacted by ICO many times asking us to improve their payment rating and, every time, we said NO.
We will do the same with exchanges. Our evaluators are completely anonymous and nobody knows who they are. Our evaluators can not choose companies that evaluate as companies are chosen at random by the Cointelligence research manager.
We have three levels of quality control: the evaluator, the supervisor who controls the assessment, and the head of research who controls the supervisor to make sure that nothing has gone wrong and that the assessment is 100% accurate.
It is important to note that Cointelligence is totally self-financed and NONE can influence the owner or team due to personal programs.
What are the main criteria used to classify exchanges? What kind of system of evaluation of the cryptocurrency exchange is used?
The system is generally based on scores 1-10, the main criteria are:
- Accessibility and usability – We create an account within the exchange with which we decide how easy it is to use the exchange. We also check how quickly their support team responds. Another important criterion are their payment methods, such as cash deposits, credit cards, etc.
- Financial benefit – We calculate and arrive at an educated estimate of how much a user benefits from the use of the exchange. In addition, we analyze what types of insurance they offer and how high the cost is covered, what their fees are, what Fiat currencies are supported, and many markets and tokens are available and the volume of trades.
- Team – We evaluate the exchange team and its ability to sustain their exchange over a long period of time, as well as their ability to keep it protected. Consider how expert the CEO is, if they have someone who has experience in fraud / risk management and how experienced he is, as well as the experience of the other team members.
- Risk – We evaluate how risky it is to use a certain exchange based on various criteria such as past hacks, their insurance system, regulations, security protocols and withdrawal process.
How often would the rating be updated? And do you also have feedback from users of the exchange?
Users are invited to submit their feedback, but it will be an exercise in futility since we only change scores based on actual improvements. We will update the evaluations every 2-3 months.
What would be a perfect exchange? Is there any exchange approaching today?
It would be too arrogant to define any exchange as perfect, since we do not believe that there is a perfect product.
Coinbase / Coinbase pro is almost perfect, as they are fully regulated. In addition, they are among the few who provide insurance for users' funds in case of breach of security or loss of funds for users.
Are there any exchanges that users should absolutely avoid?
An exchange that we recommend to people to stay away from exchanges like Hitbtc, where the owners are unknown and many users have claimed to have lost access to their funds.
If the owners or exchange teams are hidden / unknown or the exchange is registered in a "gray area", we recommend that users do not leave their funds in that exchange when they finish their commercial actions, and preferably, not to use such exchanges.
Do you also include derivative platforms like BitMEX? What about institutional exchanges like Six and NASDAQ that launch cryptocurrency products?
Currently, our system is adapted for exchanges focused on crypto, decentralized exchanges and derivative platforms.
There are several exchanges that wash the trade and create false volumes via bot trading. Will your results be able to confirm this and should this be addressed in your assessment?
We can identify such trading pairs, but controlling hundreds of trading pairs on each trade will not be realistic in the near future, even if we are looking for ways to make it possible.
Where do you see the cryptocurrency exchanges 1-5 years from today?
We can hope that they will be the main form of currency exchange, just like a digital version of today's stock exchanges. Everyone should have a personal code that allows them to operate and no one will have to identify them, be inclined or have restrictions on them when it comes to negotiation.
Will you use / not use an exchange based on these ratings? Share your comments below!
Images courtesy of Shutterstock
