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TokenScore Methodology

Updated over 2 weeks ago

What is the TokenScore?

TokenScore is a rating from 1 to 5 that evaluates the quality and risks of blockchain projects. The ratings are mostly powered by TokenInsight, an independent analysis firm. Some of the ratings are provided by token.com with internal assessments.

How is the score calculated?

Each project is analyzed across six dimensions:

  • Underlying Technology & Security - Evaluates the security and stability of the project's technology over time based on factors like duration of operation, code audits, and response to vulnerabilities.

  • Roadmap & Progress - Assesses the project's long-term roadmap, ability to meet milestones, and alignment between plans and actual development.

  • Token Economics - Analyzes the project's token distribution, vesting plans, and usage scenarios, as well as current token holder and on-chain activity data.

  • Token Performance - Examines the token's exchange listings, trading volume, volatility, and price performance compared to major cryptocurrencies.

  • Ecosystem Development - Measures the size and engagement of the project's community, social media, and related projects supporting the ecosystem.

  • Team, Partners & Investors - Evaluates the experience and qualifications of the core team, as well as the project's partnerships and investor profile.

Each dimension has multiple indicators that are scored based on objective data and expert review.

How often are the token ratings updated?

Rating outlooks are re-evaluated every 3-6 months.

What do the different scores mean?

5 - Exceptional project quality and technology with minimal risks

4 - High quality project with strong progress and low risks

3 - Moderate project with notable technology but higher risks

2 - Flawed or stagnant project with significant risks

1 - Extremely high risk project

Do higher scores guarantee investment returns?

No, the ratings solely assess project quality and risks, not investment value. Do not use the ratings as the sole input for investment decisions.

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