CoinGecko Adopts CORE3 for Exchange Security Scoring
TREE NEWS reports: On September 2, CoinGecko announced it has migrated its centralized exchange (CEX) cybersecurity scoring from CER.live to Hacken’s CORE3 risk infrastructure platform, covering 166 exchanges. The move introduces a more forward-looking risk assessment framework that evaluates not only current security posture but also resilience against emerging threats.
Key Findings from CORE3 Data
CORE3’s evaluation of 193 exchanges reveals a sobering reality:
- Approximately 48% of exchanges provided no proof of reserves (PoR), penetration testing, or bug bounty program documentation.
- Only about 5.2% of exchanges satisfied all three core security elements simultaneously.
- The updated scores are now visible on CoinGecko’s Trust Score page, while CORE3 offers a multi-dimensional risk breakdown covering security, solvency, and transparency, alongside a ‘Probability of Loss’ (PoL) metric.
Industry Implications
This migration signals a shift from static, point-in-time security audits to dynamic, continuous risk monitoring. For exchanges, the lack of PoR or active bug bounty programs may become a competitive disadvantage, as traders increasingly factor in security and transparency when choosing platforms. The emphasis on PoR aligns with the post-FTX era demand for verifiable solvency, while penetration testing and bug bounties indicate a proactive security culture.
From a user perspective, the PoL metric provides a more intuitive way to compare exchange risk, potentially influencing capital allocation across platforms. However, the methodology’s reliance on self-reported data and third-party assessments may still leave gaps, and smaller exchanges could struggle to meet the higher standards.
Forward-Looking Perspective
As the industry matures, we can expect more platforms to adopt similar risk-scoring frameworks, possibly integrating on-chain proof mechanisms and real-time monitoring. This trend may also pressure regulators to standardize security and transparency requirements for exchanges, creating a more robust and trustworthy ecosystem. For now, the CORE3 migration represents a meaningful step toward greater accountability in the crypto market.
