Crypto Indexes and Ratings Trackers You Need to Know About
With the amazing growth that has been witnessed by the cryptocurrency industry over the past couple of years, this burgeoning market space has seen the birth of a wide array of ratings agencies within a short period of time. These entities are designed to help investors and enthusiasts stay away from some of the primary evils that have spawned as a direct result of the issues plaguing the altcoin domain, namely fraudulent ICO projects, scammy digital tokens etc.
Let's look at some of the most popular crypto indexes and ratings trackers being used across the globe today:
1. Weiss Research: Weiss has been one of the big-name players in the ratings and rankings game for quite some time now.
However, in terms of their crypto credentials, the firm has only been in this space for a little more than a year and in order to subscribe to Weiss’s weekly ratings updates, customers need to shell out around $500 per annum.
With that being said, more often than not, Weiss’s official ratings are often leaked onto the net before they are even published across the company’s newsletter— thus indicating that the firm has issues with its security protocols.
In terms of how the firm’s rating system works, Weiss currently analyses more than 70 different altcoins based upon four separate indexes including:
- Risk Ratio
- Expected Rewards
- Technological Innovation
- Fundamental/Foundational Strength of the Project
Using the aforementioned criteria, Weiss then ranks the various altcoins on a scale of A+ to E.
2. Fundstrat – BMI: Many people might be familiar with the name Fundstrat because of the company’s founder Tom Lee, who is known within the global financial scene as the ‘Perennial Crypto Bull’.
Fundstrat’s Bitcoin Misery Index (BMI) is a popular ratings tool that is widely used amongst crypto investors since it delivers detailed information regarding BTC’s long-term economic forecast using current and predictive price analysis indicators.
In terms of how the index works, once BTC’s BMI drops to below the 27 no. mark, the currency officially enters the ‘misery zone’ — which is to basically say that the asset is in the grips of a bearish market.
3. Bloomberg Galaxy Crypto Index (BCGI): Another name that a lot of investors might be familiar with is the BCGI index. This highly touted crypto tool is the brainchild of Galaxy Digital’s Mike Novogratz as well as the financial team over at Bloomberg.
Upon its introduction into the market, this index tracked the performance of a meagre 10 USD-traded cryptocurrencies. However, within a span of 12 months, BCGI now monitors over 150 currency pairs in real-time.
4. Thomson Reuters – BST: Quite new to the game, Thomson Reuters’ Bitcoin Sentiment Tracker entered the crypto fray earlier this year in March. The data feed is run in conjunction with analytical information released by MarketPsych Data LLC. According to the firm, the index is able to gather news and updates related to a wide array of altcoins in real-time from more than 1000 sources.
5. CCID GPCA: The China Center for Information Industry Development has created its very own Global Public Chain Assessment Index for the purpose of ranking various digital currencies based on factors such as:
- Whether the project has its own mainnet?
- Are all the nodes within the ecosystem public and can they be freely created?
- Can the block information be viewed publicly?
- Does the project have an open-source code policy?
While on paper this ratings index looks really thorough and vetted, the fact that the Chinese government has banned the trade of all cryptocurrencies within its borders makes the GPCA lose a lot of its credibility.