Weiss Crypto Ratings
Weiss Ratings LLC has been around since 1971, and it’s among the country’s leading independent rating agencies. It covers more than 55,000 banks, credit unions, insurance companies, stocks, ETFs and mutual funds. Unlike the usual raters of the world (Standard & Poor’s, Moody’s and Fitch, etc.), Weiss never takes compensation from any of the entities they rate.
They make money exclusively from selling their products, which are the ratings themselves, to investors, consumers and end users of all sorts. That policy makes it more independent and objective.
The firm got involved with cryptocurrency ratings not too long ago. They aim to offer investors, consumers and professionals proper research on digital assets based on objective data with no bias at all, and the company is becoming influential in this regard rather quickly. This is handy information as it allows cryptonauts to choose the most reliable currencies among the hundreds available in the market today.
Last Tuesday, Weiss Crypto Ratings (the crypto division of Weiss Ratings LLC) released a comprehensive report on the outlook for cryptocurrencies for this year in which it announced the cryptocurrencies most likely to succeed in the following months.
The report
The report is entitled “Dark Shadows with a Bright Future,” and it grades blockchain projects by evaluating their potential for technology and mass adoption. According to the firm’s experts, those are the two most critical ingredients in any prosperous recipe for success in the crypto verse.
The report rates a little more than 120 tokens, which is not that much if you take into account the vast number of coins available in the market today, after 2017’s insane ICO’s proliferation.
The best-rated cryptocurrencies for the long term (graded “A”) are Ripple’s XRP, EOS, and Bitcoin. Then there’s Ethereum with “A-.” The “B+” category includes Stellar Lumen’s XLM, Litecoin, Zcash, NEO, Steem and Cardano’s ADA.
It’s quite remarkable that EOS is ranked above Ethereum, which remains the world’s leading smart contract platform. Weiss explained that because EOS’ user base is proliferating while Ethereum’s platform is plagued with problems that the leadership has been unable to solve so far.
Martin D. Weiss, the company’s founder, gave some details about the rating system.
“Despite lower prices since early 2018, our ratings model gives us hard evidence that a critical segment of the cryptocurrency industry has enjoyed remarkable growth in user transaction volume, network capacity, and network security. Equally important is our finding that these improvements are often powered by an evolution in the underlying technology.”
But as it often happens when it comes to these kinds of markets (stock exchanges, forex, bonds, etc.) everything changes when you take risk into account. When risk is considered, no altcoin gets an “A,” and the ranking changes significantly. EOS becomes the market’s leader (B-).
XRP is the world’s top digital asset regarding technology and adoption, according to the report, because it’s a potential competitor with SWIFT, the messaging system that dominates the world’s international transactions among banks. Volatility is the only reason for which XRP lost the overall top spot to EOS.
Binance Coin and Litecoin are not even mentioned in the tech/adoption rankings, but they are the number four and five assets (which is terrible news for Ether because it just pushes it down in the ranking). Once upon a time, Weiss gave Ethereum a B+. Now, it’s a C+, because of risk. So Ethereum has lost a lot of ground lately.
So what’s so cool about EOS anyway?
Weiss allowed its rankings to be considerably influenced by several trends in the cryptocurrency market. Growth in user transactions was the most influential one, as it’s interpreted as a sign of improvement in technology.
EOS has seen its user base, and transactions grow meaningfully over the last twelve months. Let’s not forget that EOS recently launched its very own independent main net, becoming separate from Ethereum thus avoiding Buterin’s network scalability problems. EOS boasts more than 80,000 daily active users in his decentralized applications (Ethereum has 19,000, by contrast) if you go by the data published by State of the Dapps.
Another trend identified by Weiss is the rise of blockchains based on Delegated Proof-of-stake (as opposed to Bitcoin’s proof-of-work) such as EOS, Cardano or Tron. While the firm had nothing to say about Ethereum’s intention to leave PoW behind to adopt DPoS, that change, should it happen, it will probably change things for the platform in the future.
Image courtesy of Pixabay.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.