Weiss evaluations, the first financial rating agency to evaluate and review cryptocurrencies in addition to classifying traditional financial institutions and institutions, has published its updated list of cryptocurrency ratings.
L & # 39; Company reviewed recently more than 3,000 cryptocurrencies and gave votes to over 111 of them. Of all recent ratings, only 4 cryptos received a "Buy" score (B- or higher) – XRP, Stellar, Cardano and EOS.
As Weiss evaluates the cryptocurrencies
According to Weiss, they base their blockchain ratings on a number of parameters:
- Technological model: the measurement of the blockchain technology used and its potential for performance. How fast can the blockchain process transactions? Is the blockchain able to scale? How advanced is your governance model? Can smart contracts be integrated into the ledger? How is energy consumption managed? Can the blockchain be easily updated? Does the project have unique features?
- Adoption model: the measurement of blockchain performance in the real world. What are your current transaction rates and costs? How decentralized is the network? How many developers are working on the project? Is the project popular? How much, if the project is in use?
- Investment risk model: measurement of volatility and potential downside risk. How much money can be lost? What are the market conditions? Does the project seem to be overvalued?
- Reward model for investments: the measurement of the upside potential. How much money are there to do? Is the project undervalued? What is the price for the supply of coins, market capitalization, etc.?
On the basis of the above parameters, Weiss Ratings assigns to each coin a vote from "A" to "E."
A currency is considered a "purchase" when it contains a vote of "B-" or higher. A currency is considered a "sell" when its grade is "D +" or lower. If the grade is a "C", the currency is considered a "wait".
XRP, XLM, ADA and EOS classified as "Buys"
In the recent Weiss evaluations, XRP is Stellar they were labeled "buy" because they scored high in the "technology model" metric with their high transaction speeds.
EOS is Cardano they have been labeled as "buy" based on the "adoption method" metric in relation to solid communities and app creation capabilities.
How much Bitcoin, received a "C" or "hold" status. Weiss has classified Bitcoin so low due to "Obsolete technology, including low transaction speeds, difficulty in downsizing, weak governance" and "poor risk / return parameters".
This recent "C" rating is the same rating received by Bitcoin in January, and many people in the cryptocurrency community do not agree with this assessment.
For example, Charles Hoskinson, the founder of Cardano and IOHK, came out in defense of Bitcoin and took his frustration on Twitter:
Any evaluation that does not give Bitcoin to A has some loose screws. Nearly ten years of wealth creation, innovation, massive growth, proven resilience against accidents and billions of infrastructure. And all without a boss. Bitcoin is the standard
– Charles Hoskinson (@IOHK_Charles) 24 January 2018
We want to know what you think of the Weiss Cryptocurrency evaluations. Bitcoin deserves a "C" rating? Do you think that coins like XRP, Stellar, Cardano and EOS deserve to be ranked higher than Bitcoin? Let us know what you think in the comments section below.