US-based investment rating firm Weiss recently released its updated list of cryptocurrency project ratings — based on factors like adoption, technology, and risk. Only four received a rating high enough to be considered a ‘buy.’
Weiss has long been a leading independent rating agency in the United States. It has traditionally been focused on rating financial institutions like banks and credit unions, as well as investment options like stocks, exchange-traded funds (ETFs) and mutual funds.
At the end of January of this year, the firm released its first foray into cryptocurrency ratings, publishing a list of 93 cryptocurrencies with a market cap over $5 million. Only five received a ‘buy’ rating, as indicated by a ‘B-‘ or above by its own standards. (It should be noted that the Weiss system ratings fall on a scale of A at the top, down to E, and additionally includes (+) and (-) to provide more clarity.)
Currently, Weiss has awarded no cryptocurrencies a grade in the A tier.
Weiss caught a bit of criticism for its list, mostly due to the fact that it gave Bitcoin a C+ rating — even though it was, at the time (and still is), the top-ranked cryptocurrency in the market in terms of name recognition, market cap, and longevity.
Weiss hit back by clarifying its model, coming to a conclusion based on four factors:
In hindsight, a large majority of the ratings from January became irrelevant amid the market-wide correction — which knocked nearly every cryptocurrency back 70-95 percent from their all-time highs at the end of 2017.
Weiss’s list has recently been updated to include 111 cryptocurrencies and is available for a paid premium on its website.
It did, however, publically name its top four picks which received a rating of ‘B-‘ or better.
Getting Good Grades
In its latest update, Weiss crowned Ripple (XRP), EOS (EOS), Stellar Lumens (XLM) and Cardano (ADA) with a rating of ‘B-‘ or better.
While all four are well-known projects in the cryptocurrency and blockchain space, not everyone is going to agree with Weiss on its selection. A good number of investors and enthusiasts consider both Ripple and EOS to have centralized governance models, and therefore cannot even truly be called cryptocurrencies.
The ratings should be taken with a grain of salt, as the market is still young and unpredictable. Projects rise and fall quickly in the cryptocurrency space — not to mention that decreases in market prices will often stifle investors interests in adoption and ownership.
Do you agree with Weiss’ buy-rated cryptocurrencies? What cryptocurrencies top your list of digital assets to buy? Let us know your thoughts in the comments below!
Images courtesy of Weiss, Shutterstock.