Independent U.S. rating agency Weiss Ratings published its full list of 93 rated cryptocurrencies on May 29, 2018, marking the first time the firm has disclosed the entire roster since launching its crypto rating service in January. The update saw Bitcoin (BTC) upgraded from C+ to B-, while Bitcoin Cash (BCH) received a C-. Notably, no cryptocurrency achieved an A or B+ grade, with the highest being a plain B.
Rating Distribution Overview
Among the 93 coins, 14 received either a B or B- rating. ADA (Cardano), DCR (Decred), and EOS were awarded a B grade. Those rated B- include BTC, ETH (Ethereum), BTS (BitShares), IOTA, ONT (Ontology), NEO, XRP, STEEM, TRX (Tron), XLM (Stellar), and ZIL (Zilliqa). Meanwhile, 54 cryptocurrencies earned C, C+, or C- ratings, such as BCH, DASH, DOGE, ETC, LSK, LTC, XMR, XEM, QTUM, SC, STRAT, UBQ, VEN, WAVES, and ZEC. No coins received D, E, or F grades on this list.
Understanding the Rating Scale
Weiss Ratings stated that its crypto ratings are based on a groundbreaking model analyzing thousands of data points per coin, including technology, usage, and trading patterns. The agency explained the grade scale: "A = excellent; B = good; C = fair; D = weak; E = very weak." A plus or minus sign indicates the upper or lower third of a grade range. An F grade is reserved for cryptocurrencies that have failed or face credible allegations of fraud.
"Cryptocurrencies do not have to achieve an A grade to merit interest by investors. A 'B' or even 'B-' also qualify as the investment rating equivalent to 'buy.' At the same time, investors should not be overly alarmed by a 'C' rating. It is a passing grade; and for investors, implies the equivalent of 'hold,'" the agency elaborated.
Bitcoin's upgrade from C+ to B- reflects its strong scores in security and widespread adoption, yet Weiss highlighted ongoing network bottlenecks causing delays and high transaction costs. Despite intense efforts to improve scalability, Bitcoin lacks an immediate mechanism for promptly upgrading its software code, the agency noted.
The publication of the full list comes after Weiss started rating cryptocurrencies on January 24, initially giving Bitcoin a C+. At launch, the agency cited excellent security and adoption metrics but criticized network congestion. The subsequent upgrade indicates progress in addressing some concerns.
Founded in 1971, Weiss Ratings traditionally does not charge the entities it rates, providing independent analysis for investors. The complete list of 93 rated coins is available for free download until June 4 upon signing up with an email address on the company's website.
As the cryptocurrency market matures, independent third-party ratings like Weiss's can help investors navigate the complex landscape. Although no coin achieved an A grade, the agency's B and C ratings offer clear "buy" and "hold" signals respectively, serving as a useful reference for market participants.