Independent American rating agency Weiss Ratings has announced investment letter grades for bitcoin and other major cryptocurrencies.
The ratings were released on Wednesday, January 24, 2018. Most large cap cryptocurrencies were rated by the company, including bitcoin, Ethereum, Ripple, Stellar, Bitcoin Cash, NEO, Tron, Monero, NEM, Cardano, Litecoin, EOS, IOTA, and Dash.
Weiss analyzed 74 cryptocurrencies in total.
Weiss Ratings emphasizes impartial, unbiased investment grades. The ratings are designed to add clarity to the volatile and risky world of cryptocurrency investing. You can access the complete list of rankings by subscribing to the annual Weiss Ratings newsletter priced at $468.
How Did Weiss Analyze Cryptocurrencies?
Before we get to the ratings, let’s talk about how Weiss Ratings ranked the cryptocurrencies.
Weiss Ratings, which has offered independent investment analysis since 1971, analyzed thousands of data points on each coin’s technology, usage, and trading patterns.
Weiss aims to differentiate itself from other ratings agencies (like Standard & Poor’s, Moody’s, and Fitch Group) because it does not accept compensation of any kind from any company that it rates.
In a press release announcing the upcoming rankings, Weiss Ratings founder Martin D. Weiss claimed, “Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide.”
In the leadup to releasing the data, Weiss Ratings claimed to have suffered denial of service attacks from Korea. The company blamed Korean social media posts anticipating that Weiss was about to release negative rankings on certain cryptocurrencies.
Nevertheless, the ratings were released without further issue on January 24.
Weiss Ranks Ethereum And EOS Higher Than Bitcoin
Ethereum received a “B” or “Good” rating from Weiss Ratings – the highest grade of any cryptocurrency (tied with EOS), and higher than bitcoin’s C+ or “Fair” rating.
Weiss Ratings liked Ethereum because it “benefits from more readily upgradeable technology and better speed, despite some bottlenecks.”
Bitcoin’s technical challenges and BTC’s inability to scale, meanwhile, negatively affected its ratings. Weiss claimed that the world’s first cryptocurrency was “encountering major network bottlenecks, causing delays and high transaction costs.”
They also frowned upon the lack of progress in the BTC community, stating that, “Despite intense ongoing efforts that are achieving some initial success, Bitcoin has no immediate mechanism for promptly upgrading its software code.”
Nevertheless, bitcoin still received excellent scores for its “security and widespread adoption.”
EOS, meanwhile, was a surprising standout, receiving the same B-rating as Ethereum.
None of the 74 cryptocurrencies analyzed by the company received a rating higher than B. The company is notorious for its harsh ratings. Previous reports on the company have noted the lack of A ratings in insurance stocks, mutual funds, and other securities markets, for example.
About Weiss Ratings
Weiss Ratings was founded in 1971. Today, the company continues to provide independent investment ratings to over 55,000 institutions.
As mentioned above, Weiss Ratings is unique about investment rating agencies because it does not accept compensation from any companies that it rates.
Weiss is based in Palm Beach Gardens, Florida.
See The Full List Of Weiss Ratings
We can’t reveal the full list of Weiss Ratings for all 74 cryptocurrencies here (they’re behind a paywall, and we’d violate copyright by sharing them here).
However, you can subscribe to the Weiss Ratings crypto analysis newsletter for $468 per year. The signup page is here.
You’ll receive immediate access to all Weiss cryptocurrency ratings. You’ll also receive new cryptocurrency ratings as they’re launched throughout the year, along with weekly updates, weekly commentary, and flash alerts.
Ultimately, the cryptocurrency industry is in need of more formal, professional analyses. Weiss Ratings has now provided that analysis. The results are better than many people expect – few people expected cryptocurrencies to receive an “A” grade as an investment. That makes the B ratings of Ethereum and EOS seem even more impressive.