Crypto Exchanges Due Diligence for 3rd parties
Whenever you have doubts as to the background of a crypto exchange, you can ask us to analyze it for you.
14 March 2019
Past analysis
We were studying the problem of fake volume since summer 2018.
We have been producing educational and investigating content. We have uncovered unethical behaviour of many exchanges and we will not stop
7 February 2019
13 December 2018
20 December 2018
4 January 2019
29 November 2018
18 October 2018
16 July 2018
2 August 2018
27 September 2018
The CER team will perform a thorough analysis of the exchange's liquidity in the major trading pairs by utilizing a custom-tailored framework, in order to detect liquidity gaps, suspicious trading activity, and fake volumes.

A review can be made within our Three Level Analysis:

LIQUIDITY REVIEW_

1st level:

  • Visual chart review (looking for potentially manipulative patterns/inconsistencies detection)
  • Visual orderbook & trade history review (analysis of spread, transactions size, price, and periodicity)

3rd level:

  • Liquidity Score with subtotals for most active pairs
  • General statistics (total/average volume, average transaction volume (ATV) + comparison with peers)
  • Correlation of price moves & volume volatility
  • Historical data is necessary for undertaking level 2 analysis

2nd level:

    • Advanced statistics (outliers' threshold and average size, ATV ex. outliers + comparison with peers)
    • Book depth analysis
    • Matching trades & orderbook
    • Historical data is necessary for undertaking level 3 analysis
    The CER team will evaluate the information security level of exchange to determine the weakest points.

    The evaluation includes сalculation of CER Cyber Security Score (CSS) with subtotals:

    CYBER SECURITY REVIEW_

    • SSL/TLS certificate quality
    • WAF/CDN
    • SPF records configuration
    • DNSSEC
    • Soft version check (open ports scan)
    • GIT, SVN, phpMyAdmin check
    • Hidden dirs/dirs access
    • Headers ( +cookies http only, secure)
    • Spam DB
    • 2 factor auth
    • Captcha
    • Password requirements
    • Bug Bounty existence
    • Data breaches
    • Previous Hack Cases
    For this part of the analysis, the CER marketing team will analyze the performance of an exchange's website, to determine whether or not the users on the exchange are real. The team will also evaluate the size and activity level of the exchanges online community to determine whether it is organic or fake.

    Analysis vectors are the following:

    • Site visits, unique visitors, unique users, comparison with peers
    • Analyzing all the sources of website traffic by using analytical tools
    • Counting the trade volume per unique visitor, etc. Comparison with peers
    • Analyzing the state and size of the exchange's community: Facebook Followers; Twitter followers, Telegram group members, number of messages per day etc. Comparison with peers
    • Aggregate and process all the data in order to make a conclusion

    MARKETING REVIEW_

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