In the crypto space, one of the most important rules is "do your research before investing". Indeed, the lack of a clear standard for evaluations by any organization forces potential investors to take responsibility. The rating agency Weiss recently tried a ranking, which was ultimately poorly received. After Weiss, it is the turn of the # site Brave New Coin (BNC) to try this risky exercise.
Brave New World
BNC teams recently announced the arrival of what they call "General Taxonomy of Cryptographic Assets". This in-depth study of the different digital currencies aims to establish evaluation standards in a field that is sorely lacking.
Rating agencies are indeed the common lot of "classic" investors. In a space as unregulated as that of cryptocurrencies, the need for reliable rating criteria is increasingly felt.
Launched this week, BNC's "Cryptographic Asset Taxonomy" is a classification tool for investors, regulators, asset managers and developers to better inform their cryptocurrency decision-making. .
"The advent of blockchain technology allows massive collaboration between global markets and generates millions of transactions daily. In order to effectively evaluate and interpret this exponentially evolving industry, it is important to have a consistent and comprehensive overall classification. Rafael Delfin, Director of Research at BNC
Weiss's attempt
The rating agency Weiss has already tried a classification, which has been poorly received by the community. Among the points of dissension, the rating of C + attributed to Bitcoin seemed badly justified.
In response to the many criticisms, Weiss recently published a 14-page report explaining the reasons for this note, as well as how to proceed to evaluate different cryptocurrencies.
Among the reasons for this note, 4 main points are mentioned:
Lower return on investment than most altcoins in 2017
The extreme volatility of recent times making a very risky investment
The centralized aspect (5 mining pool which control about 3/4 of the hashrate) as well as a network capacity at half mast (4 transactions / sec, with costs of about $ 10)
The technological aspect that begins to find its limits. Indeed, the problem of scalability is stronger than ever, and updates are becoming more complex to implement, with a community far from sailing in full consensus.
One thing is certain: it will be interesting to compare the scores awarded by the BNC to those awarded by # Weiss.