CoinGecko Unleashes Trust with Coinfirm Partnership to Combat Crypto Scams

Collaboration for a Cause

In a bold move to enhance transparency and security in the chaotic world of cryptocurrency, CoinGecko has partnered with Coinfirm, a powerhouse in blockchain analytics and anti-money laundering (AML) solutions. This partnership, announced on August 16, aims to fortify CoinGecko’s exchange Trust Score algorithm and create a robust mechanism for users to report scams and hacks.

Getting Down to Business

What does this partnership mean for those of us navigating the choppy waters of crypto trading? For starters, Coinfirm’s AMLT network offers a unique platform where members can flag suspicious cryptocurrency addresses tied to hacks, scams, and fraud. Once flagged, these addresses can be blocked from the network, reducing the risk of falling victim to nefarious schemes.

Sweet Rewards for Reporting

Members who provide actionable information are rewarded with AMLT tokens—tokens that aren’t just for show. These can be utilized to snag risk reports and gain insights from Coinfirm. It’s like turning your vigilance into crypto cash!

Understanding Trust Scores

With the integration of Coinfirm’s analytics tools, CoinGecko is set to revamp its exchange Trust Score calculations. This score serves as a vital ranking tool for exchanges based on actual liquidity, rather than just flashy marketing or exaggerated trading volumes. And let’s face it, the crypto market could use some breathing room in the transparency department!

A Glance at the Genius

CoinGecko also plans to roll out consumer-facing features like Know Your Customer (KYC) insights and proof-of-reserves estimates for exchanges. What this means for crypto aficionados is a clearer view of which exchanges are living up to their promises of security.

Empowering the People

One of the standout features of this collaboration is the ability for individual users to report dubious crypto addresses through a friendly widget. By doing so, users contribute to the safety of the entire community, while also pocketing AMLT tokens as a thank-you for their efforts.

Transparency Takes the Spotlight

Bobby Ong, co-founder of CoinGecko, noted, “We believe that transparency is key in this industry.” This initiative not only aims to help users make informed choices but also encourages exchanges to step up their game and prioritize user safety.

Industry Reflection

As CoinGecko steps into this new phase with Coinfirm, Binance CEO Changpeng Zhao has chimed in, promoting the virtues of transparency. His take? “The more reports like this, the better.” If only all sectors could adopt such a mindset!