Confidence Score is MarketMoodIQ’s stablecoin-specific health indicator. It captures the gap between price-based and social-based confidence in a stablecoin’s peg, on a 0–100 scale where higher is calmer.
How it’s built
Three components, weighted:
- Peg deviation — how far the stablecoin’s price is from $1.00. Larger deviations drag the score down harder than small ones.
- Negative sentiment share — what fraction of posts about the stablecoin are negative in tone.
- Risk-keyword incidence — how often words like depeg, freeze, regulation, insolvent, blacklist appear in associated posts.
How to read it
- 80–100 — calm. Peg is intact, conversation is routine.
- 65–80 — normal. No significant stress signals.
- 50–65 — elevated. Worth watching — usually a sentiment dip or a small peg wobble, often without an underlying solvency issue.
- 35–50 — stressed. Real risk signals are present (visible peg deviation, rising negative chatter, or both).
- Below 35 — alarmed. Treat as actionable — investigate immediately.
What it isn’t
Confidence Score is not a solvency rating. We don’t audit reserves, we don’t hold balance sheets, and we can’t tell you whether an issuer is fully backed. The score is a market-perception read, useful as an early-warning radar but never as a final word on safety. Always cross-check with the issuer’s own attestations and your own risk assessment.