CoinMarketCap has announced a new partnership which will see the website list health scores for crypto assets on its platform.
The popular service hopes the collaboration with Flipside will give inexperienced and professional traders alike a way of analyzing crypto projects through factors that extend beyond a coin’s price.
Known as the Fundamental Crypto Asset Score, the rating works on a scale of 0 to 1,000 and takes three factors into account. The first explores user activity and examines how frequently they use a coin or token for its intended purpose, while the second gauges the efficiency of developers in making improvements to code – and how involved the community is in bringing changes to fruition. The third is the asset’s market maturity and the stability of its money supply, but this has less weighting on the overall score than the first two factors.
The scoring system – which is known as FCAS for short – has been in development for the past two years, and is designed to offer a straightforward way of comparing the health of crypto ventures.
Dave Balter, the chief executive of Flipside Crypto, said:
“We’re thrilled to partner with CoinMarketCap, one of the most important data providers in the cryptocurrency landscape. Retail and institutional investors flock to [this platform] to access sophisticated data about financial instruments and have been hungering for a way to better understand cryptocurrencies.”
Brandon Chez, the CEO of CoinMarketCap, was equally upbeat about the partnership – and said it will offer his website’s users extra intelligence about cryptocurrencies beyond trading volumes, overall rankings and price analysis. He added: “As the crypto data authority, we believe in continuing to add data that would be of value to our users and customers. Flipside’s FCAS rating system will provide an additional element of insight into the fundamental health of projects for evaluating any cryptocurrency. We believe this will be a valuable research metric for our users.”
A new approach
Flipside says that it is currently near impossible for the crypto community to sufficiently vet and identify new investment opportunities when faced with the many thousands of coins and tokens in the marketplace today. It believes its metric gives investors a better chance of separating “the stakers from the fakers” because it can help detect an uptick in user numbers and consistent levels of developer activity – a sign that a company is growing rather than stagnating.
Its scores are generated by gathering raw blockchain data from crypto assets, analyzing them, and tallying them up against market statistics from other reliable sources.
The partnership could help CoinMarketCap retain the edge it has in the crypto community as it faces growing competition from established competitors over in the fiat world. As TUNF recently reported, ICE, the owner of the New York Stock Exchange, is challenging the site by launching its own cryptocurrency data feed.