Weiss Ratings: XRP, EOS, and BTC Get ‘A’ Grade for 'Technology and Adoption'

Siamak Masnavi

On March 26th, Weiss Cryptocurrency Ratings , a division of Weiss Ratings, the world's only financial rating agency providing grades on cryptocurrencies, released the March 2019 edition of the "Weiss Cryptocurrency Outlook" report, which aims to help investors by rating 122 cryptocurrencies using the following evaluation criteria: technology, adoption, risk, and reward. In this article, we highlight a few of the most interesting findings of this research.

Background

Financial ratings agency, Weiss Ratings, which was founded in 1971, started covering cryptoassets (tokens and coins) on 24 January 2018, when it launched a new website called Weiss Cryptocurrency Ratings. The idea was to provide a weekly paid report that gave an overall rating for each cryptocurrency (initially only 74 were covered), as well as two component grades: an "Invest Risk/Reward" grade and a "Technology/Adoption" grade. Grades range from A+ (best) to F (worst).

Weiss Ratings says that these grades should be interpreted as follows: 

  • A: "excellent"
  • B: "good"
  • C: "fair"
  • D: "weak"
  • E: "very weak"
  • F: "failed" or "fraud"

Here is what the three types of ratings mean:

Overall Rating

This is "a comprehensive, balanced overview of all factors, based on a complex algorithm — not an average of the component grades. When making choices, investors should focus primarily on this overall rating." 

Investment Risk/Reward Rating

Risk shows "the downside potential investors should be aware of, reflecting price volatility and magnitude of recent declines" while Reward indicates "profit potential based mostly on price momentum and recent returns to investors". The combined grade for investment risk and reward might be a useful tool for short-term trading.

Technology/Adoption Rating

The two components here are Technology, which looks at software capabilities, taking into factors such as "level of anonymity, sophistication of monetary policy, governance capabilities, ability or flexibility to improve code, energy efficiency, scaling solutions, interoperability with other blockchains," and Adoption, which takes into factors such as actual real world performance (e.g. in terms of transaction speed, network security, and decentralization of mining) and developer/enterprise/public adoption. Here, the combined grade for technology and adoption could be a useful tool for long-term investing.

Cryptocurrencies With the Best Combination of Technology and Adoption

Weiss Report  - Table 1 - March 2019.png

Cryptocurrencies With the Highest Overall Rating

Weiss Report  - Table 2 - March 2019.png

Summary of the Ratings Given to the 122 Cryptocurrencies Covered by This Research

  • None received an Overall Weiss Crypto Rating in the "A" range ("primary because crypto price trends have been consistently unfavorable in recent months, generating low scores for risk and reward among nearly all cryptocurrencies").
  • Four managed to get an Overall Weiss Crypto Rating of "B-"; these were Bitcoin (which got upgraded from its former rating of "C+" to "B-" mainly due to the rapid growth and improvement of the Lightning Network), EOS, XRP, and Binance Coin (which got such a high score partly due to the rapid increase in its price).
  • 27 cryptocurrencies got an Overall Weiss Crypto Rating in the "C" range.
  • 75 cryptocurrencies got an Overall Weiss Crypto Rating in the "D" range.
  • 16 cryptocurrencies had an Overall Weiss Crypto Rating in the "E" range.

All Images Courtesy of Weiss Cryptocurrency Ratings

New Wirex Visa Card Offers Users Cryptocurrency Rewards

A new Visa card launched by borderless payment platform Wirex rewards users with 1.5% back in bitcoin on all in-store purchases, allowing users to earn crypto rewards for using it.

According to a press release shared with CryptoGlobe, Wirex announced its new Visa Travelcard at the Singapore FinTech Festival. The card supports more than 150 currencies and processes cryptocurrency exchanges to fiat currency before transacting on the visa network.

It’s reportedly supported anywhere Visa is accepted and allows for free ATM withdrawals. Wirex touts its “first in the world” program allowing users to earn cashback in cryptocurrency. Per the firm the first 2,000 to order and activate a Wirex Travelcard will receive 20 Nano.

To get users onboard Wirex is removing management and traditional currency exchange fees for a limited period. The card is set to be available across the Asia-Pacific region. The firm’s CEO Pavel Matveev was quoted as saying it “witnessed an explosion in demand for hybrid fiat and crypto-enabled banking alternatives in APAC, where people need payments redesigned for the future.”

Wirex is one of the only cryptocurrency-related companies in the world to have been granted a UK FCA e-money license. Earlier this year it launched the WXT token on OK Jumpstart, OKEx’s IEO platform.

The firm’s announcement added it’ll soon release a “revolutionary selection of fiat-backed stablecoins.” Wirex is one of various fintech firms entering the crypto space. Revolut, for example, added stop orders for trading BTC, ETH, and BCH and others earlier this year.

Featured image by Nathan Dumlao on Unsplash.