Probe into Weiss Ratings Digital currency rating report
In January 24th 2018, Weiss Ratings, an independent US rating agency, rated 74 digital currencies for the first time. And give EOS, ETH this time the highest B rating, while market value's first BTC only got the C+ rating. What dares to rate BTC as C+, risking offending all BTC community members and believers, let's find out.
Introduction to Weiss Ratings rating agencies.
The Weiss Ratings rating, which began in 1971, is the world's leading independent rating agency for financial institutions. Today Weiss has a rating of about 55, 000 institutions and investment sectors (including insurance companies, banks, credit unions, stocks in almost all countries). ETF and mutual funds) provide credit rating assessments.
Unlike Moody's, Standard & Poor's, Fitch and AM Best, Weiss Ratings never accepts any form of compensation from the company or entity it rated. Its revenue comes strictly from individual investors, consumers and other end-users of their ratings.
Weiss rating agencies, which strictly adhere to objectivity and independence, have always prided themselves on accurate and impartial ratings, warning investment risks and guiding the public to the best return.
According to the U.S. government, Weiss ratings are always the first to warn insurers of their future financial woes, faster than A.M.S. & Poor's, Duffy Phelps, and Moody's.
On the earnings performance of Weiss's stock rating, the Wall Street Journal reported that Weiss was No. 1, ahead of all major rating agencies and research firms, including Goldman Sachs and Morgan Stanley. Merrill Lynch and Standard & Poor's. Weiss is also a leader in identifying weak companies. "
Weiss ratings do not claim to have more knowledge or data than other rating agencies. Instead, it achieves the accuracy of this performance by combining three advantages:
A powerful intelligent computer model built by our analysts and software development teams;
(2) Analysis of mass data;
(3) the most important independence.
II. Rating criteria.
The rating is 5 grades, A, B, C, D, E respectively. Grade A is excellent, grade B is good, C is grade C, grade D is weak, grade D is weak, grade E is very weak.
Encrypted currencies do not have to be A-rated to be of interest to investors. A "B" or even "B-" can be used as an investment rating equivalent to "buy". At the same time, investors should not be overly wary of being rated "C", which is a passing grade; for investors, it means "holding".
III. Rating models.
The Weiss Cryptocurrency Ratings model is built in five steps:
Step 1: collect current data on various digital money technologies, market performance and trading trends;
Step 2: a proprietary formula for converting data into comparable ratios;
Level 3: the proprietary subindex aggregates the ratio to measure key factors and characteristics that are considered key to the potential success or failure of each encrypted currency investment;
Four steps: subindicators are grouped into four key indicators (risk, rate of return, technical and basic conditions), each with a separate alphabetical rating;
Step 5th: summarize the four key indicators into a single alphabetical hierarchy;
Thus, each Weiss Cryptocurrency Rating represents the pinnacle of a pyramid that is extracted from thousands of calculations. And achieved the final results.
IV. Rating results.
The A-free BTC was only rated as C + Weiss Ratings in a statement explaining that Bitcoin has encountered major network bottlenecks, with transaction delays and high transaction costs. These factors have lowered their ratings. B level of evaluation of the project 2, respectively for EOS, ETH; there are three B- rated projects: ADA, NEO and STEEM.
V. concluding remarks.
The Weiss rating allows ordinary digital currency and block chain investors to understand investment risks and opportunities at a glance through a simple letter of rating.
However, the Weiss rating is not perfect. It is just an investment proposal, based on an objective analysis without conflict of interest, and should not be interpreted as an "absolute authority" assessment. Each assessment issued by any rating agency is ultimately an opinion for investors only.
When investors learn about the past life of Weiss ratings, they can use them better and make better choices. Maybe the next ten times, a hundred times, a thousand times the coin is in it, waiting for yourself to go to Amoy.