CoinGecko Overhauls Trust Score with CORE3 Infrastructure from Hacken

CoinGecko has upgraded its centralized exchange Trust Score system to use CORE3 infrastructure from blockchain security firm Hacken. This change affects how 166 exchanges are graded on cybersecurity, and preliminary results show that nearly half of them lack essential security practices.

The new scoring system evaluates exchanges across three pillars: security (50% weight), solvency (30%), and transparency (20%). Only about 5.2% of assessed exchanges checked all three boxes for proof of reserves, penetration testing, or bug bounty programs.

CORE3's Probability of Loss (PoL) framework is a structured way to estimate the likelihood that an exchange loses user funds. The system acknowledges that an exchange can have decent technical security but still be insolvent, as seen in collapses like FTX.