Weiss Ratings has announced its first ratings for digital currencies, in a move that some see as a further indication of growing mainstream acceptance of the industry. The securities rating firm relied on computer models that judge digital currencies based on four specific areas of analysis: risk, reward, technology, and the cryptocurrency fundamental index.
According to the ratings firm, its scale uses grades that range from “A” (excellent) to “E” (very weak), with plus and minus signs indicating that the cryptocurrency falls within either the upper or lower third of its grade range. An additional grade of “F” is reserved for digital currencies that have “failed or are subject to credible allegations of fraud.”
The agency revealed today that Ethereum earned the highest grade, with its B rating. Weiss attributed that rating to the cryptocurrency’s strengths, including “more readily upgradeable technology and better speed.” Bitcoin, the world’s most expensive and well-known digital currency, only received a grade of C+ – defined as “fair” on the Weiss scale. Weiss explained that rating on its crypto ratings website:
“Thanks to its strong adoption and brand, Bitcoin does merit an A in one of our four indexes. But it falls short in two other important areas: Our Risk Index, and Technology Index. As soon as the metrics on one or both of these improve, an upgrade for Bitcoin is likely.”
It is also worth noting that none of the rated digital currencies received an A rating. That should come as no surprise, since Weiss has a reputation for conservative analysis of securities like mutual funds and insurance stocks.
In related news, Weiss apparently experienced a number of denial of service attacks that appear to have originated from Korea. The agency attributed those attacks to concerns about potential negative ratings. The company’s founder, Martin D. Weiss, said:
"Earlier commentary on social media expressed considerable fear we were about to release negative ratings on their preferred currencies. So this may be an attempt to thwart our release today."