Brave New Coin Starts Its Own Rating System for Cryptocurrencies
Following Weiss Ratings, Brave New Coin releases its own analysis of cryptocurrencies and other digital blockchain-based assets.
The cryptocurrency market has experienced a boost in popularity after Bitcoin got its first futures contracts from both CME and CBOE.
All is well until we think about the fact that cryptocurrencies themselves do not have any standardized evaluation metric like stocks, bonds, and even fiat currencies do.
That all is about to change because Brave New Coin—an organization that provides analysis and research on cryptocurrencies—is unveiling what it calls the “General Taxonomy for Cryptographic Assets”.
According to the organization, this would be the first in-depth analysis of blockchain-based assets in various industries.
“The advent of blockchain technology is enabling mass collaboration across world markets and is generating millions of transactions and interactions daily. For this rapidly-evolving industry to be effectively evaluated and interpreted, a consistent and comprehensive global classification is important,” said Rafael Delfin, BNC’s Head of Research.
According to BNC’s announcement, the General Taxonomy was created with the intention of informing investors of the strengths and weaknesses of various cryptocurrencies and blockchain protocols.
BNC will apply more than 60 criteria in its analysis of each digital asset.
Weiss Ratings, headed by Dr. Martin Weiss, made a similar product that grades the top 70 cryptocurrencies on a scale from A to F.
The organization has since come under fire for awarding Bitcoin with a C+ rating, prompting Dr. Weiss to explain why the score is low, and why this isn’t necessarily a condemnation of the cryptocurrency itself.
So far, there is no absolute standard for rating cryptocurrencies, and the two organizations that currently have published ratings are using their own approaches, which might deviate considerably from what is normal for rating agencies that typically assess stocks and bonds.
It probably won’t be long before older agencies start to look at the cryptocurrency world. Surely, at least Bitcoin’s futures contracts would attract their attention in the future.