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Hub Launches a Beta Version of Blockchain-Powered Reputation System for ICOs

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Hub Launches a Beta Version of Blockchain-Powered Reputation System for ICOs

ICOHub, the main product powered by Hub, now contains a scam reporting system, improved algorithms to count trust scores and a new Tinder-like interface.

PR Newswire

MOUNTAIN VIEW, Calif., Aug. 23, 2018 /PRNewswire-PRWeb/ -- Hub - Human Trust Protocol launches a beta version of its main product, ICOHub, a decentralized reputation system for ICOs. The updates include blockchain-powered scam reporting functionality, improved trust score algorithms, and a new, Tinder-like interface.

ICOHub aims to serve as a high quality source of reputation data on ICO projects and market participants, both before and after the token sale event. Through an algorithmic approach, the service pulls data from a "web of trust" to determine a score for each project. In its current state, users are now able to report fraudulent ICOs and include commentary on each project to caution others on red flags, falsified data, or critical and relevant external information.

These scam reports play a significant role in determining ICOHub's trust score. While the team intends to further refine the algorithm with data sources from partners such as Crunchbase, the current trust score is derived from content present in existing ICO sites along with crowdsourced voting.

In the near future, the trust score will also be augmented by ICO team documentation and attestations and take into account suspicious price action post-ICO. In particular, contributors to the platform will be rewarded in Hub tokens; those whose predictions are the most accurate over time will receive the greatest share of the rewards, while those who are identified as engaging in manipulative behavior will be penalized by the platform.

This team draws significant inspiration from a concept in financial markets known as the Dechow F-Score (or fraud score), a novel method of analyzing financial statements created by a UC Berkeley accounting professor. This particular algorithm examines data on items such as sales, receivables, and employee count, and delivers a number known as the F-score. A higher F-score does not necessarily indicate a scam or corporate malfeasance, but definitely serves as a negative indicator and cause for concern.

In the creation of this trust score algorithm, the team has partnered with the ICO Governance Foundation, which has taken the first steps in standardizing ICO reporting. As more token sale data accumulates as the blockchain space matures, it is conceivable that certain characteristics (e.g. marketing spend, association with certain partners or advisors, project valuation, size of funding rounds, lockup structures) heavily correlate or act as strong indicators of ICO success, failure, or exit scams.

Hub looks forward to continuing to refine the ICOHub service to improve transparency among projects and create an intuitive user experience. To that end, ICOHub has implemented a new "Tinder-like" UI to enable users to review and explore current projects in a frictionless manner. As a next step, the team will integrate Civic's KYC login functionality and connect with Blockchain Terminal (BCT)'s app store to bring this reputation system to its trading platforms.

 

SOURCE Hub

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