Weiss Ratings, the US-based independent provider of ratings and research for the bank and insurance industries, issued its first letter grade ratings for cryptocurrencies on January 24. Now, for the first time, the ratings agency is allowing non-subscribers to access the complete rating list.
The access is allowed only for a week. Even though, retail investors and to a certain extent institutional investors do not bother much about cryptocurrency ratings, unlike equity markets where a downwardly revised stock will get beaten instantaneously, still, it would be better for cryptocurrency investors to have a look at the ratings, opinion, and the underlying reason behind the rating that was given to a cryptocurrency.
According to the report, the rating of Bitcoin (BTC) was upwardly revised on April 24 to B-. While Bitcoin scores on technology and adoption, it lags behind on risk and reward criteria. Bitcoin Cash (BCH), which continues to stir controversy by calling itself as the original Bitcoin, has received only a score of C-. Weiss ratings has estimated the technology of Bitcoin Cash (BCH) to be weak. Surprisingly, Ethereum (ETH) and IOTA (MIOTA) has received only a B- rating, where as Cardano (ADA), EOS(EOS) and Decred (DCR) have received a rating B. Likewise, Ripple (XRP) has also received a rating of B-. Weiss considers IOTA’s technology to be good, whereas Cardano’s technology to be excellent.
Bitcoin Gold (BTG) and Bitcoin Private (BTCP) has received a rating of D and D-, respectively. Likewise, Electroneum has received a rating of E+ as its technology and adoption is considered to be very weak.
Weiss makes an assessment about the worth of a cryptocurrency, based on the following details.
- Risk Index – based on price and volatility.
- Reward Index – based on historical buying and selling pattern.
- Technology Index – based on the review of source code and white paper.
- Adoption Index – based on adoption, settlement time, and transaction speed.
Weiss Ratings was founded in 1971. It currently covers 55,000 institutions and investments. Unlike other major financial rating agencies such as S&P, Fitch, Moody’s, and A.M.Best, Weiss do not accept payment of any kind from the entities it rates. The US Government Accountability Office (GAO), Barron’s, and several media publications have mentioned about its independence and accuracy in the past.