Earlier this week, we were talking about Weiss Ratings, a U.S. independent rating agency, which was about to start grading cryptocurrencies (https://t.me/yoken/272). So, the first rating is out – and none of 74 of the most popular cryptocurrencies on the market managed to secure a highest ‘A’ score.
What did Bitcoin get?
According to Weiss, Bitcoin gets a C+ (‘fair’), Ethereum earns a B (‘good’), and Steem a B- which is still higher than Bitcoin.
“Bitcoin falls short in two other important areas: Our Risk Index, reflecting extreme price volatility and our Technology Index, reflecting Bitcoin’s weaknesses in governance, energy consumption and scalability. As soon as the metrics on these improve, an upgrade for Bitcoin is likely,” said the analysts.
Why is it important
Weiss’ rating puts the cryptocurrency investments into terms which are familiar to traditional investors. A or B rating is an equivalent to ‘buy’, C is ‘hold’, while D or E is a clear ‘sell’.
What can we learn from it
- Firstly – this rating can affect the coins’ price. After getting B- score, both Cardano and Neo recorded a record double digit growth over the 24 hours.
- However, the rates can for sure sparkle some debate – especially around the top 3 cryptocurrencies.
- The level of attention to the rating is high, so we can expect other prominent rating agencies to enter the field.