Financial ratings agency Weiss has just released their much-eagerly awaited cryptocurrency reviews. The eagerly-anticipated report rates 74 of the most popular cryptocurrencies on the market, scoring them from A to D.
Such was the level of interest in the report, the company’s website was knocked offline as interest peaked on Wednesday morning. Weiss Ratings include some controversial scores for currencies such as bitcoin and ethereum that will definitely raise a furore.
Cryptos Award Season Arrives
When the agency announced that it was going to rate cryptocurrencies, undoubtedly there were a lot of excited fans. This was supposed to be the first time, any rating agency had done this. Crypto enthusiasts were intrigued to see what an agency from the realm of traditional finance would make of their topsy-turvy and volatile world, in which meme coins can attain $1 billion market caps and tokens for vaporware projects can soar higher still.
Wall Street was also keen to see what Weiss Ratings had to make of the crypto markets, and specifically which coins they would legitimize and which they would shun.
Pre-emptive excitement came to nought
However, the excitement turned sour really quickly as Weiss announced its results. According to the agency bitcoin scored a C+ (fair) while Ethereum scored B (good) whereas Steem scored B-. The plot twist that nobody expected was, the fact that a) Steem scored higher than Bitcoin and b) Not a single cryptocurrency warranted an A.
However, investors are not too upset by the grading. They said, “It is a passing grade, and for investors, implies the equivalent of ‘hold.’” Grades of D and E, are the equivalent of a sell, with the release citing crypto minnows Novacoin and Salus as examples of a D.”
In their defense, Weiss said, “due to ‘rapid changes in the data,’ their crypto ratings will need to be updated on a more frequent basis than ‘other sectors that [they] cover.”
Not surprisingly, ratings evoked a major indignation on social media.
A sample of the colourful feedback left on the agency’s official Tinder handle.
Elaborating on their defense Weiss published a lengthy post, saying, “Many see strictly our letter grades and not our logic behind them. Others misunderstand our primary goal: To help investors reduce risk and find the coins with the most upside potential. That means we not only consider fundamentals like adoption and history, but also investor risk-and- reward metrics based on price action.”
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