Crypto Trust Scores: How ZARQ Rates Tokens
A Moody's-style rating system for crypto. Here's how it works and what the ratings mean.
Why Crypto Needs a Rating System
Traditional finance has Moody's, S&P, and Fitch. These agencies rate bonds and companies on standardized scales, so investors can quickly assess risk without doing deep analysis on every security. Crypto has had nothing equivalent — until now.
ZARQ rates 198 tokens on a Moody's-style scale from Aaa (highest quality) to D (default). Every rating is backed by quantitative analysis across 5 pillars, updated daily, and available through a free API. No opinions, no conflicts of interest — just math.
The Rating Scale
ZARQ's scale mirrors Moody's corporate bond ratings. The key dividing line is between investment grade (Baa3 and above) and speculative grade (Ba1 and below).
- Aaa — Highest quality, minimal risk. Currently 0 tokens. Examples: stablecoins with deep reserves, commodity-backed tokens.
- A1 to A3 — High quality, low risk. Currently 9 tokens. Most major Layer 1 blockchains fall here, including and .
- Baa1 to Baa3 — Medium grade, moderate risk. Currently 73 tokens. Investment grade but with some vulnerability to adverse conditions.
- Ba1 and below — Speculative grade. Elevated risk of significant drawdown. These tokens require close monitoring.
The 5 Pillars
Every trust score is computed from five quantitative pillars, each measuring a different dimension of quality:
Pillar 1: Ecosystem Strength (Market Fundamentals)
Market cap rank, trading volume stability, exchange presence, and overall market position. Tokens with deep, stable ecosystems score higher. This pillar measures whether the token has genuine economic activity or is just speculative volume.
Pillar 2: Contagion Risk (Correlation Analysis)
How correlated is this token with other at-risk assets? Tokens that move independently during market stress have lower contagion risk. This pillar helps identify tokens that would survive a market-wide crash vs. those that would amplify it.
Pillar 3: Historical Resilience (Drawdown Recovery)
How well has the token recovered from past crashes? Maximum drawdown, recovery time, and annualized volatility. Tokens that bounce back quickly from market shocks demonstrate structural resilience. Tokens that never recover from drawdowns signal deteriorating fundamentals.
Pillar 4: Fundamental Quality (Long-term Signals)
Token age, price consistency over time, long-term trend strength, and fundamental value indicators. Young tokens with volatile histories score lower. Tokens with multi-year track records and consistent development score higher.
Pillar 5: Rug Pull Risk (Anomaly Detection)
Anomaly detection screening for patterns associated with rug pulls: extreme price movements, suspicious volume spikes, dump patterns, and other statistical anomalies. This pillar catches the specific risks unique to crypto — intentional exit scams and coordinated dumps.
(Baa2, score 56.5): Strong across all five pillars, with ecosystem strength and historical resilience as standout signals. Compare to (B2, score 28.0), which scores significantly lower on ecosystem strength and resilience.
How Scores Map to Ratings
Trust scores (0-100) are mapped to ratings using calibrated thresholds derived from the historical distribution of token outcomes. Tokens above ~80 earn A-tier ratings. Tokens in the 60-80 range fall into Baa territory (investment grade, but with moderate risk). Below 60 enters speculative territory.
The distribution is intentionally top-heavy: only tokens that demonstrate quality across all five pillars earn the highest ratings. There is no grade inflation.
Using Trust Scores
Browse all ratings on the Token Ratings page. For any individual token, the API provides instant access: GET zarq.ai/v1/check/{token}. Combine the trust score with crash probability and Distance-to-Default for a complete risk picture.
For portfolio risk, use the Crash Watch to monitor all your holdings in one view, or the Yield Risk Monitor to assess DeFi positions.