As per the rating report of Weiss Ratings, ethereum got the best one with a “good” B while bitcoin got a “fair” C+ and ripple a C. Among the rating extravaganza, the agency also suffered the denial of service attack from Korea.
A game of ratings: Who got what?
On Wednesday, Weiss Ratings, a securities ratings agency that has been giving independent ratings since 1971, gave cryptocurrencies a rating that has been calculated by using extensive data of each coin ‘s technology, trading pattern and usage.
Bitcoin received a C+ rating from it’s A to F grading system, whereas ethereum got a B and Ripple managed to get a C. This first attempt to rank the newest asset class have people eagerly anticipating. For a B rating to ethereum, Weiss explained that despite several restrictions, this cryptocurrency benefits from better speed and the readily upgradable technology.
Talking about the Bitcoin, Weiss believes C+ is a fair rating due to the very reason that this digital currency is going through some major network obstructions that causes delays and further high transaction costs. According to the release, with intense ongoing efforts, bitcoin did achieve some initial success, but there is no immediate mechanism to upgrade its software code yet.
According to the rating,
“Bitcoin gets excellent scores for security and widespread adoption.”
Out of the total 74 rated cryptocurrencies, none of them got an A grade. However, ethereum, that is the second largest cryptocurrency by the market capitalization got a good B.
Are the Weiss ratings real?
The rating was based on four criteria; Technology Index that looks for the underlying source code and how scalable, flexible and robust it is; Risk Index assess the downside; Fundamentals Index is all about the real world use scenarios; and Reward Index looks for the potential rewards.
As per the agency’s release, they have been up all night “fending off denial of service attacks from Korea.” Also, there had been concerns about negative ratings.
Martin D. Weiss, the founder of Weiss ratings said in a statement:
“Earlier commentary on social media expressed considerable fear we were about to release negative ratings on their preferred currencies. So this may be an attempt to thwart our release today.”
Amidst the concerns that the ratings are overly negative, Mr. Weiss released a statement:
“Despite extreme price volatility, cryptocurrencies have a bright future and the potential to deliver unusually large profits to investors. However, the market is hectic and confusing for investors. They need the clarity that only robust, impartial ratings can provide.”
On Wednesday, midday, the largest digital cryptocurrency by market capitalization, bitcoin traded one percent higher while ethereum traded about three percent higher.
What do you think of Weiss ratings of cryptocurrencies? Do you think it will affect the bitcoin among other cryptocurrency prices? Let us know your thought in comments below.
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.