TokenInsight release exchange ratings update

In its latest quarterly report, TokenInsight have given a downgrade to OKEx, upgrades to Bithumb and Kracken, and finally new ratings for Gemini and Poloniex.

TokenInsight has been publishing ratings and risk assessment for crypto exchanges since June 2018. They have the aim of helping investors recognise reliable and secure exchanges from the research they conduct.

Unpleasant bearish state

The report states: “In the past three months, the token market continues its unpleasant bearish state. According to TokenInsight analysis, the index that reflects the overall performance of the blockchain industry has dropped by 43.41% at its lowest point.”

The report mentions how exchange traffic is “highly concentrated on Binance and Coinbase. Binance, which had about 35 million UV in October, currently ranks first, and has about six times as many UV as Poloniex, which currently ranks third.”

“At present, HitBTC and KuCoin have the highest user dispersion in the world, with user visits accounting for at least 1% of their traffic from 28 different countries/regions.”

Expanding product range

TokenInsight also called out an expanding product range: “In terms of product, mainstream exchanges are based on token trading while expanding businesses on derivative products, project research, and more.”

OKEx has been downgraded from A to BBB. The report had some criticism for the exchange, specifically regarding the BCH hard fork, concluding “[OKEx] still has a first-mover advantage in terms of contracted products but faces competition from new entrants”.

Bithumb was upgraded from B to BB. TokenInsight said, “According to the Blockchain Transparency Institution’s data, Bithumb’s average daily trading volume was about $140m in August and about $400m in November. Bithumbs users are mainly from South Korea and it has a very high degree of user concentration.”

Kraken has also been upgraded from B to BB. It’s been a busy month for Kraken, who have listed more than 20 tokens. The report states, “The newly added tokens in the last three months are of good quality. According to the market capitalization rankings, the tokens listed on its exchange rank among the top 200. Its recent average daily trading volume has been stable, with no downward trend compared with August and sitting at about $100 million.”

TokenInsight gave a first time rating for Gemini, who kicked off with a BB rating. The report gave high praise to the exchange’s team members who all have working experience in the traditional financial industry. “There has been no major security incidents on its platform. The dollar funds that users keep in Gemini are eligible for insurance, but only to a limited extent.”

Another first time rating was for Poloniex, who started off with a BB rating. The report mentioned that the Circle-backed exchange investors include “BitTorrent, IDG, and Goldman Sachs.”

“Poloniex has been operating for nearly five years, and no major safety incidents have occurred. Poloniex obtained a full license to operate after Circle’s acquisition and has numerous fiat currency channels (US Dollar, British Pounds and Euros).”