Cryptonyooz - Fastest source of your Bitcoin news US based rating agency to issue ratings to Bitcoin and other Altcoins. - Cryptonyooz

US based rating agency to issue ratings to Bitcoin and other Altcoins.

Weiss Ratings, a US-based independent rating agency had announced earlier that it will issue letter grades on cryptocurrencies. The said ratings will release on 24 January 2018. Apart from Bitcoin, the agency will also rate other altcoins like Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and many others. Consequently, additional Wall Street money might start making its way into Cryptocurrency investments soon.

About Weiss Ratings

Weiss Ratings is a US-based rating agency which was founded in 1971. It grades about 55,000 institutions and investments including bank, credit union, insurance companies, stocks, ETFs and mutual funds. Unlike Standard & Poor’s, Moody’s, Fitch and A.M. Best, Weiss Ratings prides itself on never accepting compensation of any kind from the entities it rates.

Importance of Ratings

This will be the first time that any large scale company is rating cryptocurrencies. The rating is said to be based on a model that analyses thousands of data points on each coin’s technology, usage, and trading patterns. Regarding the same Weiss Ratings founder, Martin D. Weiss said that “Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide. We’re proud to be the first to bring that benefit to investors- to help them cut through the hype and identify the few truly solid cryptocurrencies. Our ratings are based on hard data and objective analysis. But they’re bound to create controversy, including some grades that may come as a surprise to some people.”

How the rating will work:

The coin will be broken down into 4 indexes, 2 are financial specific and 2 are crypto-specific. For Financial indexes, there will be Risk Index (potential downside) and Reward index (potential upside). And the crypto specific criteria will be broken down into 2 indexes that are Technology and Adoption indexes.

Technology index will evaluate the underlying source code and put metrics on how robust, flexible, and scalable it is. Adoption Index is determining how much adoption a currency/coin has and also a “security” component, as well as a real-world functionality component. Security will the give rating to the coin’s platform software risks (that is Hacking, backdoors, etc.). Overall, seems good for Ripple, more so than other cryptos, particularly the scam and the bloated ones.

Also mentioned is that only one or two currencies will be getting A grades. However, with recent volatility, their model is re-evaluating everything for the worse and there may be no A grades. Let’s pray for a steady bull run!!




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