Bitcoin is the dominant cryptocurrency in the marketplace. Why doesn’t it get an A?
Bitcoin does get a Tech/Adoption grade of A, but due to the negative performance of the market overall, virtually all cryptocurrencies currently get weak grades in terms of investor risk and reward, bringing down the overall ratings. As soon as the market shows signs of a sustainable recovery, risk/reward scores should improve, helping to boost Bitcoin’s overall rating.
Who is Weiss Crypto Ratings?
Weiss Crypto Ratings is a division of Weiss Ratings, LLC, which began in 1971. Weiss Ratings is among nation’s leading independent rating agencies, covering 55,000 banks, credit union, insurance companies, stocks, ETFs and mutual funds. Unlike Standard & Poor’s, Moody’s and Fitch, we never accept compensation from issuers, sponsors or any entity we rate. Our sole revenue source is from the sale of ratings and research to consumers, investors and other end users. Our independence and accuracy have been noted by the U.S. Government Accountability Office (GAO), Barron’s, The Wall Street Journal, and The New York Times, among others. Today, we apply our nearly half-century of accuracy and independence to cryptocurrencies.
Why is Weiss Ratings issuing cryptocurrency ratings?
Consumers, investors and professionals are often unable to find accurate, robust research on cryptocurrencies that’s based on objective data and devoid of bias. We are proud to be among the first to provide that benefit – to help cut through both the hype and the fear in order to identify the truly solid cryptocurrencies.
What is a Coin rating?
Weiss Crypto Ratings uses this term to refer to a category of digital assets that includes primarily cryptocurrencies like Bitcoin, Ethereum, Litecoin and more than 100 others. Each of these has its own, separate distributed ledger (shared database), and each is called the “native asset” of that ledger. In addition, this category also includes a small number of digital assets, which we call “token to coin.” These do not currently have their own separate distributed ledger but will have one in the foreseeable future. All digital assets in this category are rated based on (a) technology, (b) adoption, (c) investment risk and (d) investment reward.
What is a Token rating?
Weiss Crypto Ratings uses this term to refer to a category of digital assets, such as Chainlink, 0x, Maker, and over 1,000 others. These tokens do not have — and are not intended to have — their own distributed ledger. Rather, they exist strictly on top of pre-existing distributed ledgers such as Ethereum, EOS, NEO or others. They are generally used by organizations for fundraising or to provide various utility functions. Due to lack of transparency by most of these organizations, their tokens are rated primarily based on their (a) liquidity, (b) availability on exchanges, (c) investment risk and (d) investment reward.
Who will buy this new service?
The Weiss Crypto Ratings are designed for all stakeholders in the cryptocurrency marketplace, beginning with individual investors who crave unbiased guidance free of any conflicts of interest. They want to know which coins can provide the richest rewards with the lowest risk, the most sustainable technology and the best adoption. Plus, they need the guidance to help avoid coins that are the most vulnerable to market crashes. The Weiss Crypto Ratings can also be a vital selection tool for consumers holding cryptocurrencies to buy goods and services, for merchants accepting payment in cryptocurrencies, and for any organization seeking to raise money via cryptocurrencies.
What is the Weiss Ratings track record and how is it applicable to cryptocurrency ratings?
Weiss Ratings has a long track record of accurately identifying both the weakest and strongest in each industry sector:
- Cryptocurrencies. In 2017-2018, a hypothetical investor rotating weekly among the five coins meriting the highest Weiss Crypto Ratings could have outperformed Bitcoin by more than 8 to 1.
- Insurance. The U.S. Government Accountability Office (GAO) found that the Weiss Ratings of life and health insurance companies were first in warning of future financial difficulties three times more often than Weiss’ closest competitor.
- Stocks. The Wall Street Journal reported that the Weiss Stock Ratings ranked #1, ahead of all major rating agencies and research companies covered, including Goldman Sachs, Morgan Stanley, Merrill Lynch and Standard & Poor’s.
Weiss Ratings has achieved this performance accuracy by combining three strengths: (1) robust, intelligent computer models built by our team of analysts and software developers, (2) analysis of vast amounts of data, and (3) above all, independence. Weiss Ratings has applied these same strengths to its Weiss Crypto Ratings division.
How is Weiss Ratings different from most other financial rating agencies?
We never accept compensation from any company or issuer for our rating. We publish our ratings on all companies or investments whether the issuers want us to or not. We reserve the right to publish our ratings based exclusively on publicly available data. We never suppress publication of our ratings at a company’s request. Our customer is the individual investor and consumer – not the companies or issuers we rate. This is why Esquire noted that Weiss Ratings is “the only one that provides ratings … with no conflicts of interest.”
In addition, while other rating agencies focus mostly on companies that can afford to pay them large fees, Weiss Ratings covers all companies and investments, large or small, as long as there is sufficient data available for analysis. This allows us to provide the broadest coverage of both cryptocurrencies and traditional investments.