Rating fans, rejoice: American agency to issue grades for cryptocurrencies

What happened

Weiss Ratings, a U.S. independent rating agency with 45+ years on the market, had announced that it will be the first among U.S. rating agencies to grade cryptocurrencies, starting January 24.

Which currencies?

Bitcoin, obviously, but also a bunch of altcoins will get their letter grades. Those include ethereum (ETH), Ripple’s XRP, bitcoin cash (BCH), cardano (ADA), NEM (XEM), litecoin (LTC), stellar (XLM), EOS, IOTA, Dash, NEO, TRON, Monero (XMR), bitcoin gold (BTG) and many others.

Why is it important

Weiss is in the same market as Standard & Poor’s and Moody’s agencies – however, unlike them, never gets paid by the entities it rates. The agency grades about 55K investment opportunities, including stock, banks, ETFs, etc. And effectively, it’s one more step to bridge the gap between crypto market and traditional fund managers.

What can we learn from it

  •  Understandable and familiar grades give the fund managers another chance to justify crypto investments to the ones whose money they manage.
  •  Crypto market is desperate for clear information, too. Perhaps, the experience of an established rating agency and the grades based on data and analysis can shed some light.

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