Weiss Ratings, a grading company based out of US will begin giving letter based grades for Cryptocurrencies starting with Bitcoin on Wednesday. Along with Bitcoin, they’ll also be rating Ethereum, Ripple, Litecoin, DASH, IOTA and many more Alt Coins.
Weiss Ratings Agency was founded in 1971, grades about 55,000 institutions in a similar letter based way of grading. They grade Stocks, ETFs, Banks, Credit Unions, Insurance Unions and many more.
The rating agency claims to base the grade on thousands of data points which include technology, usage and trading pattern of the coin. This is the first time a ratings agency is taking up the task of rating Bitcoin and other Cryptocurrencies.
Martin D, the founder of Weiss Ratings said “Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide”. He also said, “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.”
While this might be a good news, take it with some grain of salt. These ratings agencies have not had the best reputation. Especially after the 2008 Market Crash. These ratings agencies were criticised for not only failing to warn investors on dangers of mortgage based securities, they also profited from them.
Wall Street has been accused of manipulating Cryptocurrency markets in the past with people like Jaime trash talking Crypto. Ratings agency might give them further access to manipulate markets.
As always, do your own research. Probably read the report these agencies give and use your own judgement to decide on your investments. Do not let a number or a grade tell you a coin’s value.