CoinGecko&CoinReaders: How to keep the market platform neutral

On the live broadcast of BiYong’s big coffee, Coinreaders CEO Park ByeongHwa conducted an AMA interview with Cobbyecko co-founder Bobby Ong in the world’s largest telegram group (BiYong official group) at 20:00 today!

Bobby Ong is the co-founder of CoinGecko. Founded in April 2014, CoinGecko is the world’s largest crypto asset market analysis platform. Bobby is the author of “Digital Currency Handbook” (1st Edition) and “Blockchain Handbook” (Volume 1). He was selected by Forbes’ 2019 Asia’s 30 Under 30 Elite List and holds a bachelor’s degree in economics from University College London.

1. Coinreaders CEO Park ByeongHwa: Quotes software is just what people need. In China, we often use non-small, mytoken, CMC, etc. The understanding of CoinGecko is not as in-depth as the others. Can you use a simplified explanation to let everyone Understand CoinGecko quickly?

CoinGecko co-founder Bobby Ong: CoinGecko is the leading cryptocurrency market platform. We are one of the earliest market platforms and have been in operation since April 2014. We have one of the most comprehensive cryptocurrency databases, tracking more than 7000 tokens on more than 400 exchanges.

We are currently the largest independent cryptocurrency market platform, and our goal is to track crypto market data in a neutral and accurate manner as much as possible. We are self-funded and have not raised any funds from any venture capital or exchange, which keeps us independent from the agenda of either party.

2. Coinreaders CEO Park ByeongHwa: What are the different functions of CoinGecko compared to other data platforms and market websites?

Bobby Ong, Co-founder of CoinGecko: CoinGecko is excellent in many ways. Here are some reasons why CoinGecko performed well:

CoinGecko has the most comprehensive cryptocurrency database, tracking more than 7000 tokens from more than 400 exchanges.
CoinGecko tracks the cryptocurrency derivatives market and has the most comprehensive part of the data aggregator.
CoinGecko uses our trust scoring algorithm to sort exchanges and overcome the rampant brushing problem. The trust score examines the bid-ask spread of the exchange, the order depth of ±2%, network traffic estimates, and other factors.
CoinGecko has a free API that is used by many large crypto companies such as Etherscan, Trust Wallet, MyEtherWallet, Metamask, etc.
CoinGecko will also publish a deep cryptocurrency report every quarter. The following is the latest report for the first quarter of 2020. (Https://landing.coingecko.com/q1-2020-report/)

3. Coinreaders CEO Park ByeongHwa: When it comes to market software, neutrality is something that users value more, because of the chaos in the industry, problems such as buying lists and data fraud occur frequently. How does CoinGecko view these issues?

Bobby Ong, Co-founder of CoinGecko: We attach great importance to the independence and neutrality of data. As the main provider of data in the cryptocurrency field, millions of users worldwide rely on our data to make many important decisions. Therefore, every decision we make will have a profound impact. We believe this is our responsibility to ensure that our data is not biased and most accurately reflects the true situation in the cryptocurrency market.

Without any external investors or owners, we are free to plan our own path and independently verify and rank cryptocurrencies and trading platforms. We know that the owners of other market platforms may try to influence their ranking, and this is the pressure we will not face.

We also know that other aggregation sites also accept bribes to improve the ranking of projects. We have received many invitations, but we have not done so. We do not agree with such behavior, because it is completely unethical and unacceptable.

4. Coinreaders CEO Park ByeongHwa: So how does CoinGecko circumvent data fraud, buy list and other issues to ensure the authenticity of the data and rank neutrality?

Bobby Ong, Co-founder of CoinGecko: We use a variety of factors when evaluating projects. For example, for crypto exchanges, we have created an algorithm called “trust score”, which looks at various factors that determine the actual liquidity and size of the exchange. In this way, if the exchange falsifies their trading volume, they will no longer be ranked first in CoinGecko. We believe that anything that can be manipulated will be manipulated. We are always looking for techniques that exchanges use to deceive our algorithms, and will continue to improve it to make it more robust.

Our advice to exchanges is to not bother to manipulate our rankings, but to strive to provide a truly good exchange platform to gain real users and increase trading volume organically.

5. Coinreaders CEO Park ByeongHwa: The ranking on CoinGecko is ranked and judged according to the “credit score”. How is the “credit score” scored?

Bobby Ong, Co-founder of CoinGecko: Trust score is an algorithm that we launched during CoinDesk Consensus 2019 in New York City in May 2019, the purpose is to change the exchange’s ranking on CoinGecko. We used trading volume to rank exchanges before, but we began to notice in early 2019 that many exchanges are manipulating their own trading volume, so ranking is basically useless. We need to do something to improve, so we propose an algorithm called trust score.

We are the first data aggregator to do this, thus providing a solution to the rampant transaction volume and false transaction volume.

We can’t bear to see all the exchanges with false trading volumes on top, and believe that trading volume is no longer a good indicator of exchange liquidity. We need to use other indicators, and think that the exchange’s bid-ask spread, ±2% order depth, network traffic estimates, API quality and other factors may be good indicators of the actual liquidity of the exchange.

This measurement method seems to work well, because the number one exchange is a large exchange, not a small exchange with a false scale. We are always looking to improve this algorithm because the exchange will try to manipulate something. More factors will be added to the trust score soon, making it more robust.

To learn more about trust scores, you can read more here: https://blog.coingecko.com/trust-score-explained/

6. Coinreaders CEO Park ByeongHwa: Now the competition on the market platform is more intense, and in order to maintain the neutrality of the data, I believe that CoinGecko has also given up a lot of related benefits. In this case, what is the reason and motivation for CoinGecko to continue to persist?

Bobby Ong, Co-founder of CoinGecko: We believe this is our responsibility to the cryptocurrency world. When I founded CoinGecko in 2014, my co-founder and I just graduated from college. We don’t have much work experience, and we don’t know much about how the world works.

After running CoinGecko for 6 years, we have indeed learned a lot from the cryptocurrency industry. We believe that it is our responsibility to help those who are just beginning to enter the cryptocurrency field. Many people help us avoid the traps that can cause huge losses, and we also want to help others.

We believe this industry is still in its infancy, and in the next few years, millions of people around the world will enter the cryptocurrency space. We have a responsibility to help educate these people and point them in the right direction. We believe that through independence and neutrality, we can best meet this need.

7. Coinreaders CEO Park ByeongHwa: According to relevant media reports, the number of CoinGecko users has increased rapidly after CoinMarketCap was acquired. Can you share this data with us? There are many media speculation that this change may make CoinGecko officially become the industry’s first. What do you think of this problem, or how does CoinGecko intend to seize this opportunity?

Bobby Ong, Co-founder of CoinGecko: There is no doubt that we are becoming the number one in the world. Since being acquired by Binance, no one thinks that Coinmarketcap is neutral because everything they do is no longer independent. They have a strong demand to make their owners look good, otherwise how can they justify the high price paid?

Therefore, for market platforms such as CoinGecko, it is very important to remain neutral and not allow exchanges to be their investors, as this will seriously affect the company’s decision-making.

Since the acquisition, many people on Twitter have said they are using CoinGecko now. We are actively participating in community activities and looking for ways to grow. We are a community-centric company, our ears have always been at the grassroots level, and we are constantly listening to further improvements.

After the acquisition, many token projects and exchanges also extended a helping hand to me, hoping to cooperate and develop this industry together.

8. Coinreaders CEO Park ByeongHwa: So in this promotion, what do you think is the problem with Coingecko, or where can it be improved? Have you started to plan for related improvements? This year’s epidemic and the dramatic changes in the global situation have affected CoinGecko? If so, how does CoinGecko respond to such changes?

Bobby Ong, Co-founder of CoinGecko: New coronary pneumonia has a certain impact on us, but it is not very big. Even before, we had a flexible work culture where employees can work freely at home. When the government established a two-month comprehensive blockade in Malaysia, we told everyone that we would be completely remote and everyone quickly adapted.

Work efficiency is as good as when we work in the office. Now that the blockade in Malaysia is over, we will continue to work and expand CoinGecko further away from our office to work flexibly at home on certain days.

9. Coinreaders CEO Park ByeongHwa: Can you share with us the future development direction and overall plan of CoinGecko? Is there a financing plan?

CoinGecko co-founder Bobby Ong: There are many plans for CoinGecko in 2020 and beyond. We will track more data products on CoinGecko, add more features on our website and mobile applications, such as product portfolio, increase our trust and make it more powerful. The overall experience will be more friendly and will be further improved.

We are always looking for ways to improve, so we strongly encourage anyone to share their ideas with us via email [email protected]

We currently have no plans to raise funds immediately. We are fully prepared for our cash flow situation because we are very cautious about the cash generated from the 2017-2018 bull market because we know that the market will enter a multi-year bear market phase.

 

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