Weiss Ratings Unveils Cryptocurrency Grades Amid Sell-Off Worries
Weiss Ratings is about to launch the first service that will grade digital currencies.
Weiss Ratings is poised to launch the first cryptocurrency rating service, which is coming at a time of serious concerns sparked by the latest market sell-off. The new Weiss Cryptocurrency Ratings will start issuing letter grades on January 24, covering Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, EOS, IOTA, Dash, NEO, Monero, Bitcoin Gold and many others.
The crypto ratings card will use a groundbreaking model that analyzes thousands of data points on each coin's technology, usage, and trading patterns.
“Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide. We're proud to be the first to bring that benefit to investors – to help them cut through the hype and identify the few truly solid cryptocurrencies. Our ratings are based on hard data and objective analysis. But they're bound to create controversy, including some grades that may come as a surprise to some people,” founder Martin Weiss said in a statement.
Palm Beach Gardens, Florida-based Weiss Ratings, which opened for business in 1971 as part of Weiss Group, has established a name for grading banks, insurers, and stocks. What separates Weiss Ratings from peers like Standard & Poor's, Moody's, Fitch and A.M. Best is that it never accepts compensation of any kind from the entities it rates. Its founder, Martin Weiss, has a reputation for approaching investments with caution and has admitted that grading cryptocurrencies is "a departure” from the agency’s traditional expertise, as he told the Palm Beach Post.
Weiss said the aim of the cryptocurrency ratings is to provide guidance, not tell investors whether to buy or not.
“Weiss Ratings has always stood for prudent investing. The average investor needs the prudence and guidance that a solid rating can provide. If you want to want to invest in cryptocurrencies, you need to do so based on fact, not fiction.”
Timely Crypto Ratings
The release of the Weiss Cryptocurrency ratings comes at a time when the virtual currency space is reeling from a massive sell-off, with nearly all major cryptocurrencies going into free fall this week. But the market-wide downturn seems to have started ebbing as the industry begins to recover. As of Thursday, most of the major digital currencies are in the black, and the overall market capitalization is also on the mend, data from CoinMarketCap shows.
Hopefully, the new crypto ratings will soften the blow from rumors and reports such as the one suggesting that the spectacular rise of Bitcoin from $150 to $1,000 over October and November 2013 may have been the result of market manipulation.