Weiss has issued its first cryptocurrency ratings, ranking Ethereum above bitcoin
The securities ratings firm is the first to give a rating to cryptocurrencies.
Weiss Ratings has ranked Ethereum as "better" than bitcoin, as well as the EOS coin, in its first cryptocurrency ratings.
Bitcoin received a C+ rating from the firm, due to the fact that its network has some serious bottlenecks which have resulted in long transaction delays and fees. Weiss acknowledged bitcoin's core developers were looking to address these issues, with the likes of the Lightning network, however it noted that there is no immediate mechanism for promptly.
Ethereum's B rating was received due to the fact it benefits from more readily upgradeable technology, with a development team moving fast on it, as well as better speeds. It missed out on an A rating due to some speed bottlenecks in its current form.
EOS was the only other coin to receive a B rating with Ethereum, with no coins or tokens receiving an A rating.
Following Ethereum and EOS with their B rating, Cardano, NEO and Steem were deemed to be the next best crypto investments by Weiss receiving B- ratings.
The third-largest cryptocurrency Ripple only managed to receive a rating of C, despite its partnerships with big global financial institutions.
Weiss announced its plans to rate cryptocurrencies earlier this week.
While no As were given, Weiss is still bullish on the cryptocurrency industry as a whole.
“Despite extreme price volatility, cryptocurrencies have a bright future and the potential to deliver unusually large profits to investors,” Weiss said. “However, the market is hectic and confusing for investors. They need the clarity that only robust, impartial ratings can provide.”
The lowest of the 74 rated coins were Novacoin and Salus with a D rating due to their weak technology and low adoption rates.
Since the release of the results, Ethereum's price has risen over 2%, while bitcoin has gone down around 1% and Ripple is down over 2%, according to CoinMarketCap.
- Hash Wars: Bitcoin Cash ABC takes early lead, but its not over yet
- CoinDesk unveils the “Crypto-Economics Explorer”
- Ledger releases colourful new Ledger Nano S family, up to 30% off
- Cryptocurrency crash: Here’s why the markets are plummeting
- Independent Reserve has a new KPMG cryptocurrency tax estimator