Scoring Methodology

Overview

AssetSwap employs a sophisticated, multi-dimensional scoring system to evaluate tokens across multiple blockchain networks. Each token receives comprehensive analysis across six key dimensions, producing an overall quality score from 0-100 that helps investors make informed decisions.

Component Scores

1. Liquidity Score (0-100)

Evaluates the token's market depth and ability to handle trades without significant slippage.

Key Factors

Liquidity Depth Analysis

  • Market maker depth and order book strength

  • Available trading volume without significant slippage

  • Cross-exchange liquidity aggregation

  • Historical liquidity stability patterns

Trading Volume Assessment

  • Daily and weekly trading volume trends

  • Volume consistency across time periods

  • Organic vs artificial volume detection

  • Volume-to-market-cap ratio analysis

Market Stability Indicators

  • Price stability during high volume periods

  • Spread consistency across trading sessions

  • Market maker presence and reliability

  • Impact of large trades on price movement

2. Activity Score (0-100)

Measures trading engagement and market participation.

Key Factors

Multi-Timeframe Trading Analysis

  • Real-time and historical trading patterns

  • Activity consistency across different time periods

  • Peak trading hours and geographic distribution

  • Sustainability of trading engagement levels

Wallet Participation Metrics

  • Number of unique wallets participating in trading

  • New wallet acquisition rates

  • Repeat trader engagement patterns

  • Geographic and demographic distribution

Market Balance Assessment

  • Healthy buy/sell ratio maintenance

  • Order flow analysis and market depth

  • Institutional vs retail participation balance

  • Market maker activity and support levels

3. Community Score (0-100)

Analyzes the health and distribution of the token holder base.

Key Factors

Community Size Analysis

  • Total number of unique token holders

  • Growth rate and sustainability of community expansion

  • Comparison to similar tokens in the same category

  • Geographic distribution and diversity metrics

Holder Distribution Health

  • Concentration risk assessment across different holder tiers

  • Whale vs retail investor balance

  • Mid-tier holder engagement and stability

  • Distribution pattern analysis for healthy decentralization

Community Growth Dynamics

  • Multi-timeframe growth trend analysis

  • Organic vs artificial growth detection

  • Holder retention and engagement patterns

  • Community acquisition method diversity

Engagement Quality

  • Active vs passive holder participation

  • Community-driven vs speculative holding patterns

  • Long-term holder commitment indicators

  • Social engagement correlation with holding patterns

4. Security Score (0-100)

Evaluates contract security and risk factors based on SolSniffer audits.

Key Factors

Smart Contract Audit Results

  • Comprehensive security audit scores from leading firms

  • Contract verification and transparency levels

  • Known vulnerability assessments and remediation status

  • Third-party security firm recommendations and ratings

Token Security Features

  • Mint function controls and restrictions

  • Account freeze capabilities and governance

  • Liquidity lock mechanisms and duration

  • Upgrade path security and decentralization

Risk Assessment

  • Concentration risk from large holders

  • Contract administration privileges and controls

  • Historical security incident analysis

  • Ongoing monitoring and alert systems

Compliance and Transparency

  • Regulatory compliance status across jurisdictions

  • Team disclosure and verification levels

  • Audit trail completeness and accessibility

  • Community governance and decision-making transparency

5. Momentum Score (0-100)

Evaluates price trends and market momentum.

Key Factors

Price Trend Analysis

  • Multi-timeframe price movement patterns

  • Trend strength and sustainability indicators

  • Support and resistance level identification

  • Price momentum relative to market conditions

Volume Dynamics

  • Trading volume growth and consistency

  • Volume-price relationship analysis

  • Institutional vs retail volume patterns

  • Market maker participation and support

Market Participation Growth

  • New trader acquisition and engagement

  • Trading frequency and pattern analysis

  • Market interest sustainability metrics

  • Cross-platform trading activity correlation

Momentum Sustainability

  • Fundamental strength supporting price trends

  • Market sentiment alignment with price action

  • Technical indicator convergence analysis

  • Risk-adjusted momentum assessment

6. Maturity Score (0-100)

Assesses market establishment and token maturity level.

Key Factors

Market Capitalization Assessment

  • Market cap tier classification and stability

  • Relative positioning within token category

  • Market cap growth sustainability analysis

  • Comparison to comparable projects and benchmarks

Token Supply Economics

  • Circulating vs total supply distribution

  • Holder concentration risk analysis

  • Large holder influence on market dynamics

  • Supply inflation and deflation mechanisms

Market Establishment Indicators

  • Time since launch and trading history

  • Exchange listing tier and availability

  • Liquidity provider relationships and support

  • Market maker engagement and stability

Community Maturity

  • Holder base size and engagement quality

  • Community governance participation

  • Long-term holder commitment patterns

  • Social media presence and professional community

Overall Score Calculation

Weighted Average Method

Weighted Scoring Algorithm

Our proprietary algorithm combines all component scores using carefully calibrated weights:

  • Liquidity Score: 25% weight - Market depth and trading accessibility

  • Activity Score: 20% weight - Trading engagement and participation

  • Momentum Score: 20% weight - Price trends and market dynamics

  • Community Score: 15% weight - Holder distribution and growth

  • Security Score: 15% weight - Smart contract safety and audit results

  • Maturity Score: 5% weight - Market establishment and stability

The algorithm dynamically adjusts for data availability and applies normalization to ensure consistent scoring across all evaluated tokens.

Score Interpretation

Overall Score
Rating
Interpretation

80-100

Excellent

High-quality token with strong fundamentals

60-79

Good

Solid token with positive indicators

40-59

Moderate

Mixed signals, requires careful evaluation

20-39

Poor

Significant risks or weaknesses

0-19

Very Poor

High risk, multiple red flags

Investment Guidance

Based on comprehensive analysis, our AI provides clear investment guidance:

  • Strong Buy (80-100): High-quality tokens with excellent fundamentals across all metrics

  • Buy (60-79): Solid investment opportunities with good underlying strength

  • Hold/Monitor (40-59): Mixed signals requiring careful evaluation and timing

  • Avoid (0-39): Significant risks outweigh potential opportunities

All recommendations consider both overall score and individual component strength, with particular emphasis on security metrics.

Data Sources

Real-time Data Providers

  • BirdEye: Price, volume, liquidity, trading metrics

  • Moralis: Holder analytics, distribution data

  • SolSniffer: Security audits, contract analysis

  • LunarCrush: Social sentiment (when available)

Update Frequency

  • Price/Volume data: Every 30 seconds

  • Holder data: Every 5 minutes

  • Security audits: On contract deployment, then cached

  • Score recalculation: On data update

Important Considerations

Limitations

  1. New Tokens: May have artificially low scores due to limited history

  2. Manipulation: Short-term metrics can be gamed

  3. Data Availability: Not all tokens have complete data

  4. Market Conditions: Scores don't account for broader market trends

Best Practices

  1. Use Multiple Metrics: Don't rely on overall score alone

  2. Check Security First: Low security score is a red flag regardless of other metrics

  3. Monitor Trends: Score changes over time are often more informative than absolute values

  4. Verify Data: Cross-reference with other sources for important decisions

Platform Integration

Real-Time Scoring Access

Our scoring system is fully integrated into the AssetSwap platform, providing:

  • Instant Analysis: Real-time scores updated continuously

  • Comprehensive Coverage: Thousands of tokens analyzed across multiple networks

  • Historical Tracking: Score evolution and trend analysis

  • API Availability: Enterprise-grade access for institutional partners

All scoring data is accessible through our user-friendly interface and can be integrated into external systems through our robust API infrastructure.

Conclusion

AssetSwap's scoring methodology provides a comprehensive, transparent framework for evaluating tokens. By combining multiple data sources and applying consistent scoring logic, we help users make informed trading decisions based on quantifiable metrics rather than speculation.

The system is designed to be:

  • Transparent: All calculations are documented and verifiable

  • Comprehensive: Multiple dimensions capture different risk/opportunity aspects

  • Adaptive: Scores update in real-time as market conditions change

  • Actionable: Clear recommendations based on score thresholds


This methodology is subject to updates and improvements based on market feedback and data availability.

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