Weiss Ratings, the first financial rating agency to evaluate cryptocurrencies, has released its mid-year 2018 cryptocurrency report. The updated ratings showcase significant shifts in the performance of various digital assets, with EOS and NEO among the top performers at B+.
Understanding Weiss Ratings' Methodology
Weiss Ratings employs a sophisticated algorithm to assess cryptocurrencies based on multiple factors:
- Investment Risk-Return: Evaluates risk (from "excellent" to "very weak") and return (based on price trends and investor profits)
- Technical Assessment: Analyzes code quality, scalability, and security
- Adoption Metrics: Measures transaction speed, market penetration, decentralization, developer activity, and public acceptance
Lowest-Rated Cryptocurrencies (E-)
These projects received the poorest ratings:
- Expanse: Ethereum-based decentralized platform (founded 2015)
- Matchpool: Dating app with crypto rewards (faced ICO fund misuse allegations)
- Quark: Decentralized currency system
- SaluS: Dropped from "D" to "E-" since January
Mid-Tier Performers (C+)
Cryptocurrencies matching Bitcoin's original C+ rating:
- NEM: Maintained rating despite CoinCheck hack
- Ontology: Rated as average
- Ripple: Slid to "C" amid legal issues
- STEEM: Another C+ recipient
- Stellar Lumens: Above-average score
- TRON: Earned C+ after mainnet launch; potential Pornhub integration announced
Top Performers (B+)
While no cryptocurrency received an "A", these stood out:
Cardano (ADA)
- Gained investor confidence after testnet launch
- Price increased following eToro listing
EOS
- Successfully migrated to mainnet in June
- Despite governance challenges, shows strong potential
Ethereum
- Upgraded from "B" to "B+"
- Benefited from SEC's non-security classification
NEO
- Launched independent network nodes
- Opened first decentralized exchange in April
FAQ
Q: Why did Bitcoin originally receive a C+ rating?
A: Weiss Ratings considered its technical limitations and scalability issues compared to newer blockchains.
Q: What factors helped EOS and NEO achieve B+ ratings?
A: Mainnet launches, technical advancements, and growing ecosystem adoption were key factors.
Q: How often does Weiss Ratings update its cryptocurrency assessments?
A: The agency publishes major updates twice yearly, with interim adjustments as needed.
Q: Can a cryptocurrency's rating improve over time?
A: Yes, as seen with Ethereum's upgrade from B to B+ following regulatory clarity.