Weiss cryptocurrency ratings begin on 24 January 2018
Weiss Ratings says the upcoming cryptocurrency scores "may come as a surprise to some people."
The independent Weiss ratings agency will be turning a lens on cryptocurrency on 24 January, with the release of its inaugural cryptocurrency ratings.
"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."
How the ratings work
The Weiss ratings will analyse thousands of data points on each coin’s technology, usage, and trading patterns to reveal which coins might offer the safest returns, the best protection against a market crash and more.
"We are applying our 46 years of accuracy and independence to cryptocurrencies," its statement reads. "The Weiss Cryptocurrency Ratings can also be a vital selection tool for consumers holding cryptocurrencies to buy goods and services, for merchants accepting payment in cryptocurrencies, and for any entity seeking to raise money via cryptocurrencies," its statement reads.
Is it really independent?
Founded in 1972, Weiss Ratings doesn't accept payments from the companies it rates. It says previous research has found its predictions of financial distress to be more accurate than those of Standard & Poor's and other prominent agencies.
Cryptocurrency is less conventional though. If it turns out that anyone involved in the Weiss scoring has a substantial stake in the coins being graded, would that cast doubt on the results? In the absence of clear regulations this remains a philosophical rather than a legal question.
As long as the grading methodology is transparent, people might find the information to be useful in much the same way that decentralisation and transparency are some of the main benefits of blockchain technology in general.