Ratings institution weighs in and the crypto-community is not happy.
Weiss Ratings (@WeissRatings) is one of the most respected orgnaisations when it comes to delivering ratings based on technical information for Stocks, Mutual Funds, ETFs and Financial Institutions.
Just recently, Weiss Ratings released its report card on a number of cryptocurrencies resulting in a denial of service attack and a wave of social media responses from the community of crypto currency traders and enthusiasts.
Bitcoin received a “fair” C+ rating overall with the Fundamental Index (Adoption, Brand, Security) getting top marks but the areas of Risk Index letting it down with extreme volatility of price and Technology Index also marking down BTC on energy consumption, governance and scalability. Weiss Ratings followed up by stating “As soon as the metrics on these improve, an upgrade for Bitcoin is likely.”
EOS also received a B rating while an A rating was not given to a single cryptocurrency showing room for improvement if any cryptocurrency wants to impress the old market.
That said, an A from Weiss Ratings is no mean feat with very few insurance stocks, mutual funds and other securities getting top marks from the Florida based company.
The ratings were not the glowing reports desired by the crypto community and Denial of Service attacks were launched against the Weiss website just hours before the release of the report as some sectors of the community were concerned about negative ratings.
Amazing but HARSH feedback from the crypto community today regarding Bitcoin, Ripple and Dogecoin! For our response, go here: https://t.co/vYtPqA5ysZ
— Weiss Ratings (@WeissRatings) January 24, 2018
Overall, cryptocurrencies have room for improvement which could bode well in the long term for the decentralised financial systems as the technology develops further to address mainstream market concerns which is after all the end game for all cryptocurrencies.
Find the CNBC story here.
So what is your take? Did Weiss get it wrong? Is the future for cryptocurrencies bright? Let me know in the comments or call in on my Anchor station with the Anchor.fm app.