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Weiss Crypto Asset Rating Models and the Rating Criteria of Models

Weiss Crypto Asset Rating Models and the Rating Criteria of Models

By Apoaca | crypto_world | 14 May 2020


 

What İs Weiss Ratings ?

 

weiss

Weiss Ratings was founded in 1971. Weiss Ratings claims to be the only financial rating agency that offers a combination of five critical benefits for users.

Weiss Ratings publishes 53,000 institutions and investment notes.

  • Daily updated trading rates for investors in all stocks, mutual funds, and ETFs listed in the U.S.
  • Safety ratings for consumers in almost all US banks, credit unions, and insurance companies are updated quarterly.
  • Technology, adoption, risk and momentum levels are updated weekly for cryptocurrencies. Weiss is the only rating agency that covers this asset class.

The subject of the article will of course be to examine Weiss Ratings's crypto rating.

 

The Weiss Ratings Scale

 

İnternational rating agencies use a scale from triple A to single C. In that scheme a B grade is “junk” and a C is close to failure. In contrast, Weiss Ratings’ B is “good” and C is “fair.” Based on a study of the Weiss Ratings by the U.S. Government Accountability Office, an institution is not categorized “vulnerable” unless its grade is D+ or lower.

Thus, cryptocurrencies do not have to achieve an A grade to merit interest by investors. At the same time, investors should not be overly alarmed by a “C” rating. It is a passing grade.
 
Top Coins by Rating

weiss

 

What does the Weiss Cryptocurrency rating scale mean?

 

A = perfect

B = good

C = medium

D = weak

E = very weak

The plus or minus sign indicates the upper third or lower third of the class range, respectively. Cryptocurrencies that are subject to unsuccessful or trusted fraud claims are also assigned an F grade.

 

Weiss Ratings's Crypto Asset Rating Models

 

Weiss Ratings does not act on a single major model while grading crypto assets. Crypto assets are graded according to 4 models, taking into account their features.

 

1- The Adoption Model

 

The Weiss Crypto Ratings proprietary model, which evaluates real-world network security, network capacity, speed, scalability, market penetration, decentralization, developer participation, public acceptance, plus other key factors.

 

Top Coins by Adoption

 

adaption model

 

Of course, we see Bitcoin at the top of the Adaptation Model. Ethereum is following the leader of the Crypto World on the eve of the Ethereum 2.0 update.

The most interesting coin of the adaptation model is Dogecoin. Dogecoin ranks 5th in the adaptation model, as evidence of how unpredictable and magic the crypto world is.While Dogecoin initially started as a joke, it quickly gained a lot of traction, and a very strong community was built around it, which now is one of Dogecoin’s greatest asset.

The crypto asset of the Binance exchange, which has recently purchased Coinmarketcap, BNB is the only exchange-based crypto asset in the top 10 of the adaptation list

 

2- The Technology Model 

 

The Weiss Crypto Ratings proprietary model which evaluates each cryptocurrency’s potential to achieve a variety of goals, including high transaction speeds and other scaling solutions, decentralization, energy efficiency, sophistication of monetary policy, governance capabilities, flexibility to upgrade, and others.

 

Top Coins by Technology

 

technology

When we examine the technology model, we encounter an extremely interesting picture. Among the crypto assets that ranked in the top 10 in the adaptation model, none of the crypto assets other than Ethereum and Cardona are in the top 10 of the technology model.

Tezos is at the top of its technology model rating. Although Cosmos is one of the strongest crypto assets on the list, Grin, which managed to enter the list in the 10th place, draws attention as a crypto asset to be examined.

It is also surprising that Holo, whose grade is D + in the general rating, and Nexus which is the rating D-, find themselves in the top 10 of the first list according to the technology model.

Bitcoin, the leader of the crypto world, ranks 11th in the tech model rating list.

 

3- The Momentum Model 

 

The Weiss Crypto Ratings proprietary model based on a composite of sub-models that evaluate (a) returns compared to moving averages, (b) absolute returns compared to a benchmark, (c) smoothed returns compared to a benchmark, and other factors.

 
Top Coins by Market Momentum

 

momentum model

Mixin is at the top of the list in the Market Momentum model.

Mixin (XIN) bills itself as a free and lightning fast peer-to-peer transactional network for digital assets. Leveraging Directed Acyclic Graph (DAG) and Byzantine Fault-Tolerant protocols, Mixin aspires to help other blockchains 'achieve trillions of TPS, sub-second final confirmations, zero transaction fees, enhanced privacy, and unlimited extensibility'.

  • Circulating Supply  511.855 XIN
  • Max Supply                1.000.000 XIN

 

 

mixin

 

Bitcoin Private takes the second place in the momentum model.Bitcoin Private emerged as a unique “fork-merge” of two popular cryptocurrencies - Bitcoin and ZClassic. The fork-merge occurred on February 28, 2018, and the main net was launched on March 3.

Bitcoin Private is based on Zclassic’s technology, which is called zk-snarks technology. This technology is derived from the Zerocoin protocol, which is also used by the parent coin of Zclassic, Zcash.

Zk-snakrs conceals the address of traders on the network along with other details of their transaction, while still publishing all payments on the blockchain for transparency.

  • Circulating Supply  4.785.761 BTCP
  • Max Supply              22.873.588 BTCP

btcpt

While the Bitcoin momentum model is ranked 4th, Ethereum is ranked 5th. On the other hand, BNB is the only crypto asset belonging to a exchange that is in the top 10 list of momentum list.  

 

4- The Risk Model

 

A Weiss proprietary model based on a composite of sub-models that measure (a) relative and absolute price fluctuations over multiple time frames, (b) declines from peak to trough in terms of frequency and magnitude, (c) market bias, and other factors.

 

Top Coins by Investment Risk

 

risk model

 

When we examine the risk model, we see that the assets dominating the crypto market are at the top of the list.

When we examine the risk model, we see that the assets dominating the crypto market are at the top of the list. AION ranks 5th in the risk model ranking, with strong corporate support and increased community support.

 

Purpose of the Article

 

The purpose of the article was to examine Weiss Rayting's crypto asset rating models and criteria.

I know that you will not participate in most of the rating lists in the article.

Given the nature of crypto assets and manipulative movements on the crypto exchanges, I don't think any rating model can fully evaluate all factors. In the crypto world, momentary changes can make a huge gain or cause financial losses.

It will be useful to take a look at different analyzes and evaluations before investing.

 

Publish0x Refferal Link:   https://www.publish0x.com?a=MYerlRBbOB

 

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Apoaca
Apoaca

Man who loves crypto coins


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What Sataoshi Nakamato created was not just Bitcoin. Satoshi wanted to create a new world. A new economic system. A new foolish debate. Satoshi recreated privacy. Crypto will shape the future.

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