On January 24th, financial ratings agency Weiss Ratings became the first financial ratings agency to grade cryptocurrencies on an A-D+ scale; and the agency’s subsequent grading of several digital currencies has now sparked anger from investing communities.
Revealed through an official blog post, the Weiss Ratings Team explained that their cryptocurrency ratings are “based on a groundbreaking model that analyzes thousands of data points on each coin’s trading patterns, technology, and usage.”
The team continued to offer that:
“The new world of cryptocurrencies has delivered astonishing profits to investors and holds great promise for the future. Millions of new investors have rushed in. Hundreds of self-declared experts have appeared to advise them. But the market suffers from lax standards, murky operators, marketing hype, and periodic market crashes. It desperately needs the clarity that only robust, impartial ratings can provide.
We’re proud to be the first financial rating agency to bring that benefit to investors – to help avoid the hype, while identifying the few solid and promising cryptocurrencies that truly merit their hard-earned cash.”
The ratings haven’t met universal acclaim, however – with popular cryptocurrencies such as Bitcoin netting a C, Bitcoin Cash at C-, Ethereum at B, and Dogecoin at C. No cryptocurrency managed to make the ‘A’ grade.
Shortly after the release of the rankings, Weiss Ratings’ official website went offline thanks to a flurry of DDoS attacks – and now the team has blamed South Korean investors for the intervention.
Weiss Ratings founder Martin D. Weiss claimed that “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.”
The ratings were met with skepticism on Twitter, wherein cryptocurrency pundits and investors expressed their disregard for Weiss Ratings’ grading system.
My rating of the Weiss Ratings: F-
— Riccardo “fluffyblockchain” Spagni (@fluffypony) January 24, 2018
Weiss Ratings overview of the cryptocurrency market has been signaled as the early eyes and ears of institutional investors seeking an avenue into the digital currency ecosystem.
Ari Paul, chief investment officer at cryptocurrency investment firm BlockTower Capital, quipped to CNBC that “Weiss’ cryptocurrency ratings are a great example of the ongoing institutionalization of the cryptocurrency industry and a healthy addition”.
At press time, markets show a healthy response – Bitcoin orbits values north of $11,000 USD, while Ethereum has raised past the $1,000 USD milestone once again.
What are your thoughts? How do you regard Weiss Ratings’ grading of various digital cryptocurrencies? Join the conversation and let us know on Twitter: @coininsidercom!
Weiss Ratings’ cryptocurrency report can be purchased here.