Weiss Crypto Ratings have released a report titled “Dark Shadows With A Bright Future” and although they didn’t give any coins an A+, Weiss sees potential in several of the top tokens. The report is based on an analysis of 120 cryptocurrencies with regard to technology and adoption. Bitcoin (BTC), Ripple’s XRP and EOS all received A grades.
Weiss Ratings has been in business since 1971. They added crypto to their stable of 53 000 institutions and the weekly Cryptocurrency Ratings, are the first by a financial rating agency.
The rating for XRP is “best positioned to compete with Swift”, the global payments provider. EOS is “currently the leading cryptocurrency challenging Ethereum to become the backbone of the new internet”. And Bitcoin is best positioned to become a popular store of value for savers and investors thanks to its upgrade with the roll out of the Lightning Network.
Ethereum checks in with an A-, with Cardano, Steem, NEO, Zcash, Litecoin and Stellar all receiving a B+.
However, another rating in the report dedicated to risk and reward gives only four coins, EOS, XRP, BTC and Binance Coin (BNB), a value of B- with no currencies being given an A. Weiss warns that investors must not ignore the risk of loss which is much higher in the crypto market than any other asset class, hence the lower ratings.
A Risk Now Could Lead To A Good Reward
The report found five evident trends. Sections of the the industry are enjoying growth in the volume of user transactions, which improves adoption. This adoption is largely powered by improving technology. Delegated Proof-of-Stake (DPoS) coins are on the rise, while Proof-of-Work (PoW) coins are losing market share. Some cryptocurrencies are moving beyond blockchain. Decentralized apps (dApps) will play the biggest role in determining future winners.
Weiss Ratings founder, Martin D. Weiss said that for those who are willing to take the risk investing in crypto, the best time to invest could be very close.
“Despite lower prices since early 2018, our ratings model gives us hard evidence that a critical segment of the cryptocurrency industry has enjoyed remarkable growth in user transaction volume, network capacity, and network security,” he says. “Equally important is our finding that these improvements are often powered by an evolution in the underlying technology”.