Cryptocurrency ratings compared: What do Weiss and Crypto Collective Group say?
And why does everyone think EOS is so amazing?
One of the things we see with mature markets is different indexes and rating systems that give insights into the performance of the overall market and specific entities that trade. Similar systems are evolving in the cryptocurrency world.
Earlier this month, security ratings firm Weiss Ratings offered its insights into the major cryptocurrencies on the market, suggesting Ethereum was a better overall performer than bitcoin.
While Weiss' ratings quickly attracted attention, Weiss isn't the only ratings system out there. The Crypto Collective Group has put together its own ratings system which adds some interesting information pertaining to what proportion of the total coin pool is circulating, the current price and the total market capitalisation.
Weiss rates Ethereum (B grade) and EOS (B grade) above bitcoin (C+ grade) with Ripple (C grade) coming in below all of them. The Crypto Collective Group ranks those four currencies similarly, although its ranking system suggests Ripple (E grade) is far weaker than the others, which Weiss ranks more closely, giving Ethereum and EOS an A grading (also awarded to Monero, Cardano and Stellar) with bitcoin scoring a B and Ripple getting a lowly E ranking.
Interestingly, EOS is rated highly by both even though it's officially yet to launch.
Weiss didn't give any A ratings – something it is known for in other markets analysed by the firm.
If you're trading in the cryptocurrency markets, tools like this can be helpful for providing insights. At the moment, these ratings are useful, if only as a comparative tool. But, there's also a lot of disagreement around what makes a good index. That's unsurprising given we are still in a nascent market that has a growing number of entrants and lots of volatility.