Proof of Usefulness Report

CoinAlpha

Analysis completed on 1/18/2026

+610
Proof of Usefulness Score
Category Standard

CoinAlpha (Hummingbot) is a highly legitimate, VC-backed FinTech entity with significant funding ($13.6M) and verified real-world utility in the crypto market-making space. The project scores high on innovation and utility due to its established open-source software and invention of liquidity mining. However, the submission itself contained extremely low-quality, hyperbolic responses in specific fields (e.g., claiming 'most people have used my product'), which significantly reduced the Quality Factors for Audience Reach and Traction. Despite the poor submission effort, the underlying project's scale and proven track record drive a high score.

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Score Breakdown

Real World Utility+212
Audience Reach Impact+78
Technical Innovation+162
Evidence Of Traction+127
Market Timing Relevance+80
Functional Completeness+2
Subtotal+662
Usefulness Multiplierx0.92
Final Score+610

Project Details

Project URL
coinalpha.com
Description
CoinAlpha, founded in 2017, is a FinTech software engineering company specializing in trading software and services for digital assets, combining expertise in data engineering, machine learning, and blockchain engineering to create trading solutions that empower companies to take control of their token liquidity. \n\nCoinAlpha created Hummingbot, the leading open source software for building market-making and arbitrage bots. In addition, CoinAlpha operates Hummingbot Miner, the successful liquidity mining platform for centralized exchanges. Hummingbot Miner lets users of the open source Hummingbot software earn rewards from projects - such as Algorand, Solana, and AscendEx - by running market making bots on certain trading pairs. CoinAlpha invented the concept of liquidity mining in a 2019 whitepaper.\n\nHaving started the company in 2017 as a quantitative hedge fund, CoinAlpha’s founders combine 22 years of experience in investment banking and trading at Goldman Sachs and JP Morgan with engineering and product leadership roles at Silicon Valley companies like Apple and Nitro. CoinAlpha has raised a total of $13.6 million from Initialized Capital, Bain Capital Ventures, 1kx Capital, Borderless Capital, Ironfire Ventures, Stanford-StartX Fund, and other funds and angels.\n\nFor additional information, visit www.coinalpha.com or www.hummingbot.io
Audience Reach
everyone
Target Users
everyone
Technologies
Blockchain, Construction, Machine Learning
Traction Evidence
most people have used my product

Algorithm Insights

Market Position
Strong market validation with clear user adoption patterns
User Engagement
Documented reach suggests active user community
Technical Stack
Modern tech stack aligned with sponsor technologies

Recommendations to Increase Usefulness Score

Document User Growth

Provide specific metrics on user acquisition and retention rates

Showcase Revenue Model

Detail sustainable monetization strategy and current revenue streams

Expand Evidence Base

Include testimonials, case studies, and third-party validation

Technical Roadmap

Share development milestones and feature completion timeline