Weiss Rating of C+ For Bitcoin Stirs Debate on Social Media
We had reported that independent rating agency Weiss is planning to come up with a letter grade rating for crypto currencies. Much to the disappointment of crypto currency traders and investors, Weiss has given a C+ grade to crypto currency heavy weight Bitcoin. Ripple fared much worse with a rating of C, while Ethereum got a rating of B. None of the cryptos were given a rating of A.
Weiss did provide the details for the subdued ratings. Bitcoin received A rating in Fundamental Index, which is one of the four measures used to rate crypto assets. However, according to Weiss, the coin fell short in Risk and Technology Indexes. Bitcoin had a bad Technology Index rating due to scalability issues, rising transaction fees, and transaction confirmation time.
The rating agency also pointed out high volatility, weakness in governance and huge energy consumption leaving a large carbon footprint as reasons for the low rating. Bitcoin, however, received an excellent score for security and widespread adoption.
The upgradable technology and better transaction speed fetched a better rating for Ethereum. Bitcoin Cash, which has been a subject of controversies, received only a rating of C-. Unheard crypto tokens such as SaluS and Novacoin received a D rating, with advice to “sell.”
Commenting on the ratings, Ethereum co-founder and former CEO Charles Hoskinson opined that Bitcoin’s status as the first coin to be created with a disruptive technology should have earned the network additional points.
However, diehard fans of Bitcoin and Ripple called the rating as yet another example of FUD (Fear, Uncertainty, and doubt), intended to drive the price lower so that big investors can accumulate them at a discount.
Notably, on social media platforms, before the ratings were released, crypto traders had expressed concerns that the ratings will not be as per expectation. Angry South Korean hackers even resorted to a DDoS attack on the Weiss’ website.
Weiss plans to update the ratings often, compared to other sectors they cover, due to rapid changes in the data. Optimistic founder of Weiss ratings said “despite extreme price volatility, crypto currencies have a bright future and the potential to deliver unusually large profits to investors.”