Proof of Reserves Trust Score Methodology

CoinReserveWatch uses a 5-Coin system to represent a trust score. Based on the criteria outlined below, an entity can score between 0 and 5 Coins. Any significant notes about how the score was determined can be found on the entity's profile page.

The trust score is broken down in the basic five sections with either a zero, a half, or one Coin being awarded in each section.

A red X will be shown for a 0 score and an n/a will be shown for entities that we haven't yet assessed, or for which a score is not applicable.

If you're part of an entity that's listed on this site, and believe your trust score is unjust, or if you've made adjustments that aren't reflected in our data, please reach out to CoinReserveWatch.com to make us aware of the changes.

Accessibility

Publicly accessible proof of reserve data is crucial because it enables the greatest potential for oversight. Requiring an account to access the data heightens the possibility that access to the data could be monitored and penalized.

One Coin is awarded when an entity's proof of reserve data, with wallet addresses, is made publicly accessible.
A half a Coin is awarded if proof of reserve data, with wallet addresses, is only available when signed into an account on the entity's web site.

Dissemination

Adequate dissemination of data through verifiable channels is very important. If an entity releases PoR data to a third party without providing a verifiable record of that release, it introduces doubt on the authenticity and reliability of the data.

One Coin is awarded when the data has been clearly released by the entity and there is a clearly labelled, and easy to find link to the data on the entity's web site.
A half a Coin is awarded when notice of the data release was published on a platform like x.com, but there is no clearly labelled link to the data or the notice of the release on the entity's web site.

Certified

Some cryptocurrencies allow for the embedding of arbitrary data into transactions or enable proving ownership by signing messages with the private key. While not perfect, these methods are very effective for demonstrating control and ownership of a cryptocurrency address.

One Coin is awarded when a message has been signed, where possible, with the private key for an address included in PoR data. Embedding a message in OP_RETURN or similar methods is also acceptable.

Auditabilty

Being able to audit proof of reserve data helps prove its legitimacy and completeness. The most acceptable method is using a Merkle Tree with Zero-Knowledge Proofs, which allows individual users to participate in the verification of the data. Third-party audits and attestations simply change 'Trust me, bro' to 'Trust my bro, bro,' and thus do not warrant a significantly higher score.

One Coin is awarded when the entity employs an audit mechanism like a Merkle Tree with Zero Knowledge Proofs.
A half a Coin is awarded when there is a third party audit or attestation within the last year. A half coin is awarded when it's a public company and a report is filed with the SEC or a similar authority.

Automatability

Making PoR data available in an automatable way is a significant indicator of an entity's commitment to transparency. Data overload is a real challenge, and the ability to automatically retrieve and process data can help make monitoring less costly and more accessible.

One Coin is awarded when the entity makes PoR addresses and data available in a programmatically accessible manner via an API method or endpoint.
A half a Coin is awarded when data has to be scraped or manually retrieved.