In addition to Ripple, Weiss will rate Bitcoin, Ethereum, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, EOS, IOTA, Dash, NEO, TRON, Monero, Bitcoin Gold and many others. Weiss Ratings founder, Martin D. Weiss, PhD, notes:
Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide. We’re proud to be the first to bring that benefit to investors — to help them cut through the hype and identify the few truly solid cryptocurrencies. Our ratings are based on hard data and objective analysis. But they’re bound to create controversy, including some grades that may come as a surprise to some people.
The letter grades they currently use are:
- A: Excellent
- B: Good
- C: Fair
- D: Weak
- E: Very Weak
- +: The “+” indicates a rating in the upper third percent of each grade range
- -: The “-“ indicates a rating in the lower third percent of each grade range
If the letter grade for Ripple comes back low, it could move the price of Ripple down. This is the first time a sophisticated rating model by an independent authority shines some perspective on value.
This is going to be a paid service, though the first ratings may be given out free to all who signup. See the bottom of this page for the email signup. Even if the first batch of ratings are paid, the letter grades will get out and it may move the XRP price.
Here are some FAQs to get you up to speed on this new service.
Who is Weiss Ratings?
Weiss Ratings, which began in 1971, is the nation’s leading independent rating agency, covering 55,000 banks, credit union, insurance companies, stocks, ETFs and mutual funds. Unlike Standard & Poor’s, Moody’s and Fitch, we never accept compensation from the entities we rate. Our independence and accuracy have been noted by the U.S. Government Accountability Office (GAO), Barron’s, The Wall Street Journal, and The New York Times, among others. Now, we are applying our 46 years of accuracy and independence to cryptocurrencies.
Why is Weiss Ratings issuing cryptocurrency ratings?
The cryptocurrency marketplace is murky, overhyped and vulnerable to crashes. It desperately needs the clarity that only robust, impartial ratings can provide. We are proud to be the first to bring that benefit to investors – to help them cut through they hype and identify the few truly solid cryptocurrencies.
Who will buy this new service?
The Weiss Cryptocurrency Ratings are designed for all stakeholders in the cryptocurrency marketplace, beginning with individual investors who crave unbiased guidance free of any conflicts of interest. They want to know which cryptocurrencies can provide the richest rewards with the lowest risk and the most sustainable technology. Plus, they need the guidance to help avoid cryptocurrencies that are the most vulnerable to devastating crashes. The Weiss Cryptocurrency Ratings can also be a vital selection tool for consumers holding cryptocurrencies to buy goods and services, for merchants accepting payment in cryptocurrencies, and for any entity seeking to raise money via cryptocurrencies.
What is the Weiss Ratings track record and how is it applicable to cryptocurrency ratings?
Weiss Ratings has a long track record of accurately identifying both the weakest and strongest institutions and investments in each industry sector.
In the insurance sector, for example, the U.S. Government Accountability Office (GAO) found that the Weiss Ratings of life and health insurance companies were first in warning of future financial difficulties three times more often than A.M. Best and many times more often than Moody’s, Standard & Poor’s or Duff & Phelps. Similarly, a follow-up study by Weiss, using the same methodology, found that Weiss Ratings was also the leader in correctly identifying the truly safe companies.
With respect to stocks, The Wall Street Journal reported that the Weiss Stock Ratings ranked #1, ahead of all major rating agencies and research companies covered, including Goldman Sachs, Morgan Stanley, Merrill Lynch and Standard & Poor’s.
Weiss Ratings has achieved this performance accuracy by combining three strengths: (1) robust, intelligent computer models built by our team of analysts and software developers, (2) analysis of vast amounts of data, and (3) above all, independence. These same strengths are directly applicable to cryptocurrencies. In addition, Weiss Ratings has benefited directly from the knowledge and experience of specialists in the field of blockchain technology and the cryptocurrency ecosystem.
How is Weiss Ratings different from most other financial rating agencies?
We never accept compensation from any company or issuer for our rating. We publish our ratings on all companies or investments whether the issuers wants us to or not. We reserve the right to publish our ratings based exclusively on publicly available data. We never suppress publication of our ratings at a company’s request. Our customer is the individual investor and consumer – not the companies or issuers we rate. This is why Esquire noted that Weiss Ratings is “the only one that provides ratings … with no conflicts of interest.”
In addition, while other rating agencies focus mostly on companies that can afford to pay them large fees, Weiss Ratings covers all companies and investments, large or small, as long as there is sufficient data available for analysis. This allows us to provide far broader coverage, including nearly all U.S.-traded stocks, ETFs and mutual funds; nearly all U.S. banks, credit unions and insurance companies; and now, cryptocurrencies as well.
How can I purchase this service?
The first Weiss Cryptocurrency Ratings service will become available January 24, 2018. To be among the first to receive our next release, please give us your email address with the form below.