Author – Sam Reeds, UK
The Bitcoin received a lower rating than expected given its gold standards in the crypto world. Other cryptocurrencies received a better rating, but no “A” was awarded to any cryptocurrency. The Highest rating was a B and B – with Ethereum, EOS and other few altcoins gaining the spot.
The ratings sparked a debate online as people view the C + rate given to Bitcoin was relatively misguided as the digital currency has proven to be safe from crashes, market cycles and have massive infrastructure created over a period of 10 years, unlike other recently launched Altcoins.
As expected the best-rated cryptocurrencies would gaining, the big winners being Cardano and Neo with a rating of B minus. Ethereum and EOS gained with a double-digit while C and C + rated such as Bitcoin gaining the lowest.
Dr. Martin Weiss told CNBC that the rating agency created a computer model that analyses a digital asset at different levels and provide a reasonable, rigorous and rational research that investors can use to avoid the crypto hype. The model is based on Risk Index, Reward Index, Technology Index, and Fundamentals Index, which are mostly used by crypto traders to assess different coins.
Do mainstream CRYPTO ratings really matter?
Weiss financial rating agency is a traditional based rating agency with a high success, accuracy, and independence in rating traditional assets. However, most of these traditional assets are stable and price movements are relatively quiet with few price-swings, unlike the crypto market. A simple example will be the bitcoin gaining Over 1000% in value in less than one year or recent Ripple (XRP) price movements such a trend can never happen to traditional assets. The accuracy and applicability of the ratings can be questionable, but the rating at least provides a level of credibility to the crypto world.
Author: Author : Mike
A avid crypto expert. Freelancer, editor and manage part time content at cryptonewsbytes.com. Working at cryptonewsbytes.com since Dec 2017.
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