The recent panic around the crash of TerraUSD and Terra Luna has once again raised the question about the security of cryptocurrencies. As of now, the industry is far from being free of projects with poor security.
Recently, the biggest crypto data aggregator, CoinGecko, integrated the security data from the CER.live rating of cryptocurrencies into the project’s pages, section “Security”, with a mission to draw users’ attention to the importance of security.
Bobby Ong, co-founder and COO of CoinGecko, said:
Investing in cryptocurrencies carries certain additional risks compared to other asset classes. As crypto investors, one area we should be mindful of is the security level of tokens. With the integration of CER 2.0, we hope to improve user awareness of token security and enable all CoinGecko users to make well-informed decisions.
CER covers top 1.5K projects by market cap
CER 2.0 is the security rating of cryptocurrencies covering the top 1,500 projects by market capitalization according to CoinGecko. Thus, CER has assessed the security of all cryptocurrencies with the market cap over $3 million with a few exceptions.
CoinGecko users will see four indicators:
- Security score
- Platform audit coverage
- Bug bounty score
- Insurance score
The security score is calculated as an adjusted average of twelve indicators included in the CER 2.0 methodology, among which there are three basic indicators mentioned above.
Kostiantyn Oleshko, product owner at CER.live, added:
This integration will surely foster cybersecurity in Web 3.0. Compared to 2020, the year when our crypto exchanges security score was integrated into CoinGecko, the number of secure crypto trading platforms has doubled. It’s a great confirmation of the value of our partnership with this leading data aggregator for the industry.
Only 1.2% of cryptocurrencies follow all security best practices. By refraining from investing in projects with non-adequate security, users can mitigate the risk of losing their money as a result of theft, scam, and other threats. Projects that invest in security are more likely to be focused on long-term growth.
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