CryptoCompare Launches Benchmark Rankings for Cryptocurrency Exchanges

Cryptocurrency data and indices provider CryptoCompare is working to make it easier to spot good, and bad, crypto exchanges.

Announced Wednesday, the company has launched a benchmark ranking of over 100 active spot exchanges from across the globe, offering users a "Comprehensive, granular and reliable source of information on the best trading venues."

CryptoCompare's Exchange Benchmark was launched to address the need for reliable metrics to evaluate the large number of cryptocurrency exchanges now offering services around the world.

The first analysis, based on exchange data for the period May 1-31, suggests the most trusted three exchanges are Coinbase, Poloniex and Bitstamp in descending order of ranking.

Under the benchmark system, exchanges are graded from high to low - through AA, A, B, C, D, E, F - based on their total cumulative score relative to the pool of exchanges included in the rankings.

CryptoCompare cites research indicating that many exchanges are wash trading and using incentivised trading schemes to inflate volumes.

The Exchange Benchmark, CryptoCompare says, indicates the problem has been getting worse, with lower quality exchanges increasing market share by 30 percent in the last 12 months.

"In response to industry concerns over inflated volumes and the lack of reliable metrics for assessing cryptocurrency exchanges, we are excited to launch the CryptoCompare Exchange Benchmark. We look forward to bringing greater transparency to the digital asset class and improving decision-making for market participants by providing a dataset they can trust."

Bitwise Asset Management also recently published a list of the 10 exchanges that it found are seeing real volume.

CryptoCompare said its Exchange Benchmark will be fed into its aggregate indices to create reference rates for the top exchanges.