Weiss Ratings CEO Says Crypto Ratings Are Necessary to Reduce Hype and Fear

ยท 31 Mar 2019 in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

The independent rating agency Weiss Ratings has been publishing cryptocurrency ratings since January 2018. During a recent interview with CryptoSlate, the CEO of the company, Dr. Martin Weiss, explained why a rating system for virtual currencies is important.

Martin Weiss Talks About Crypto Ratings

The cryptocurrency market has been marked by usual swings in prices and the sentiment of enthusiasts. It has been very difficult to have an objective idea of which are the most innovative and quality projects in the space. This is why Weiss Ratings decided to start analysing virtual currencies and giving them an objective rating based on a computer model that takes into account risks, reward, technology and their fundamental aspects fo adoption and security.

During the interview with CryptoSlate, Dr. Weiss commented about the rating system:

“Objective independent rating systems are sorely needed to empower individual and institutional investors to help cut through hype and fear – to identify the truly promising cryptocurrencies.”

It is worth mentioning that the system was created not only for investors but also for stakeholders. That includes users, sponsors, developers, miners and token issuers.

During the conversation, the CEO of the company explained that there are three different rating systems for virtual currencies. These ratings are: the Weiss Tech / Adoption grade for stakeholders, the Weiss risk / reward and the Weiss rating system for broad evaluation.

The first of the systems is useful for stakeholders with long term investment preference. Meanwhile, the second system is going to help those stakeholders interested in short term trading opportunities.

Dr. Weiss compared the development in the blockchain and crypto space with the early days of the internet. He said that it is possible to compare the dot-com bubble of 1999-2003 with the crypto market cycle between 2017 and 2018. Both of these technologies continued to evolve during bear times.

As Dr. Weiss says, blockchain technology has greater disruptive and constructive potential than the internet. Blockchain technology could change democratic voting systems, social networks and the financial world.

However, there are some challenges that the crypto and blockchain industries are facing. He said that there is a scarcity of independent research to help stakeholders agree on basic facts and engage in healthy debates. The CEO believes that businesses in the crypto industry should also try avoiding paid “research” in order for the free flow of objective information to properly spread.

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