Letter grades on cryptocurrencies, including Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, EOS, IOTA, Dash, NEO, Monero, Bitcoin Gold and many others would be issued by Weiss Ratings which is a leading independent rating agency in the United State of financial institutions.
This is the first time that a financial ratings agency has attempted to rate cryptocurrencies. The basis of the ratings is the use of a new model that examines thousands of data points related to technology, usage, and trading patterns off each of the virtual coins.
“Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide,” said Weiss Ratings founder, Martin D. Weiss. “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.”
More than 55,000 institutions and investments are rated by Weiss Ratings and the first such rating was done way back in 1971. No compensation is taken against the ratings provided by Weiss from the entities that are rated unlike the other rating agencies such as Standard & Poor’s, Moody’s, Fitch and A.M. Best. the U.S. Government Accountability Office (GAO), Barron’s, The Wall Street Journal, and The New York Times, and others have noted the independent nature and accuracy of Weiss.
The agency claims that the Weiss ratings agency was ranked number one by The Wall Street Journal in terms of profit performance while Weiss Ratings was called “the leader in identifying vulnerable companies” by Barron’s. Weiss Ratings of U.S. life and health insurers significantly outperformed those of Moody’s, Standard & Poor’s and A.M. Best, reported the U.S. Government Accountability Office (GAO), says that agency.