Weiss Ratings, the leading independent rating agency of financial institutions, released today the first-ever grades on cryptocurrencies by a financial rating agency.
Weiss rates 55,000 traditional institutions and investments and announced an intent to rate various digital currencies earlier in January 2018. Since the announcement, investors were waiting with anticipation for the ratings of various digital currencies, however these ratings will be adjusted quickly in comparison to traditional assets.
The Weiss Cryptocurrency ratings make use of a letter grade, with ‘A’ being ‘excellent’ and ‘E’ meaning ‘very weak.’
These gradings are based on a set of four criteria:
The Cryptocurrency Risk Index: it measures (a) relative and absolute price fluctuations over multiple time frames, (b) declines from peak to trough in terms of frequency and magnitude, (c) market bias, whether up or down, and other factors.
The Cryptocurrency Reward Index: it evaluates (a) returns compared to moving averages, (b) absolute returns compared to a benchmark, (c) smoothed returns, and other factors.
The Cryptocurrency Technology Index: it evaluates the level of anonymity, governance capabilities, the ability to upgrade, energy efficiency, scaling solutions, interoperability with other blockchains, plus other technological strengths or weaknesses.
The Cryptocurrency Fundamental Index it measures transaction speed and scalability, market penetration, network security, decentralization of block production, network capacity, developer participation, public acceptance, plus other key factors.
Final Gradings
No cryptocurrency at yet has managed to score the highest grade A, total 70 cryptocurrencies were subject to ratings and the outcome summary is as following for major coins in the market:
Grade B: Ethereum (ETH) and EOS
Grade B-: Steem, Neo and Cardano
Grade C+: Bitcon, Dash and Litecoin
Grade C: Monero and Ripple
Grade C-: bitcoin Cash
Grade C: Monero and Ripple
Grade D: Novacoin,
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