đ From Data to Value: Estimating the Virtual Capitalization of Crypto Exchanges
đ The Challenge of Exchange Valuation
Unlike publicly traded platforms like Coinbase, most crypto exchanges remain private, making their valuation a complex task. Adrian Barkley from CryptoDaily introduced the Virtual Capitalization Metric, comparing key ratios against Coinbase to estimate net worth.
đ Key Metrics Used for Evaluation:
đ Average Daily Trading Volume
đ Web Traffic
đ„ User Count
đ° Exchange Token Market Cap
đ§ Trust & Value Index Framework
Beyond raw data, the Exchanges' Trust and Value Index assesses six critical factors: Transparency, Activity, Capital, Security, Compliance, and Proof of Reserves.
đ Highlights from the Data:
đ Binance: Leading with $31.3B daily trading volume and 200M users.
đ Coinbase: Known for regulatory compliance and 73M users.
âïž WhiteBIT: Solid performance with $5.1B trading volume and 5M users.
đ Transparency and Security Insights:
Exchanges like Binance, Coinbase, and Kraken maintain public proof of reserves. Others, like WhiteBIT, rely on third-party audits for security. Compliance levels also vary, with Coinbase excelling in U.S. regulations.