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What is Sock Score and how does it work?
What is Sock Score and how does it work?

Learn about what Sock Score is and how you can use it to invest wisely and understand risk.

Bryan Levine avatar
Written by Bryan Levine
Updated over a year ago

⚠️ Sock Scores are not investment advice. Do your own research before investing.

What is Sock Score?

When investing in crypto, it’s hard to know which tokens to consider and which ones aren’t worth your time. Sock Score™ makes it easier to learn more about a token’s fundamentals. Each token is given a score from A to F, so you have a quick read of how it stacks up against other tokens in the market.

How are tokens rated?

Tokens are scored based on three key factors; stability, maturity, and economics. For each factor, we compare the token’s performance against that of the overall market.

Stability

Investing involves risk, and one of the key risks is volatility in price movements. Stability measures a token’s price movements in a rolling 30 day window compared to movements in the rest of the market. The smaller the movements up and down compared to the market overall, the more stable a given token is.

Maturity

Maturity measures a token’s market cap compared to the rest of the market. Tokens with larger market caps tend to be able to weather market changes better than those with smaller market caps, which tend to be more volatile during periods of uncertainty.

Economics

The rules that govern supply and demand of tokens tend to create upward or downward pressure on a token’s price over time. Economy measures how much of the token’s supply is currently in circulation against how much is planned to be. This gives you an indication of whether the token will likely experience upward or downward price pressure based on how inflationary or deflationary it is.

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