The Weiss Ratings rating agency has published good indicators for cryptocurrencies

Weiss Ratings, an investment analysis firm, has published its latest cryptocurrency ratings. Usually the publication is paid, however, this time you can get it for free by subscribing to the newsletter.

The rating includes about 93 cryptocurrencies, rating them on a scale where A is the best indicator and F is the worst. In turn, each letter has three levels: Plus (+), Neutral and Minus (-). This gives 18 levels of risk assessment. To arrive at the final score, Weiss Ratings considers scores from 4 different areas of study. 

In an interview with CNBC, Martin Weiss explains:

“We break our model down into four sub-models, each corresponding to a different aspect of these cryptocurrencies: The first is a risk index, which gives investors an idea of ​​how serious the downside potential is. The second is the income index, which makes it possible to estimate potential income. Next comes the manufacturability index, which takes into account the underlying source code and how robust it is, how flexible it is, how scalable it is. And finally, the last and most important fundamental index is the Adoption and Security Index.

When Weiss Ratings first published its report earlier this year, Bitcoin received a C+, while Ethereum received a B-. 

In the latest report, Bitcoin's overall score was B-; Bitcoin Cash received a C-, Ethereum a B-, and Ethereum Classic a C+. The best rated cryptocurrencies were Cardano, Decred and EOS, they received a B. There were no B+, let alone an A.

The media noted the agency's high standards. Barron's and The New York Times reports from 2002 and 1992 noted the absence of an A rating from Weiss Ratings.

Ari Paul, chief investment officer of BlockTower Capital, wrote to CNBC in a letter criticizing the agency:

“Weiss's cryptocurrency ratings are an excellent example of the ongoing institutionalization of the cryptocurrency industry. Their Bitcoin ranking offers a misleading understanding of the underlying value of cryptocurrencies. The rating overestimates the value of the transaction and underestimates the stability of the protocol, security and decentralization."

Even though Mr. Weiss knows that his research results may cause such a reaction, he insists that his firm's level of impartiality is as high as that of other prestigious competitors:

"Unlike Moody's, Standard & Poor's, Fitch and A.M. Best, Weiss Ratings never accepts compensation of any kind from the companies or organizations it rates.. The agency's revenues depend solely on individual investors, consumers and other end users of its ratings."