Securities rating agency Weiss issued the first ratings on cryptocurrencies on Wednesday, judging ethereum (ETH) to be better than bitcoin (BTC). The Weiss Cryptocurrency Ratings were met with mixed reactions, as the agency’s website was reportedly hit with denial of service attacks from those displeased with the assessments.
In the first “Weiss Cryptocurrency Ratings”, securities rating agency Weiss has deemed ethereum (ETH) to be better than bitcoin (BTC) in terms of speed and upgradable technology.
Ethereum received a B rating [note: B = ‘good’] because it “benefits from more readily upgradable technology and better speed, despite some bottlenecks”, according to a release. Bitcoin, on the other hand, received a C+ rating [note: C = ‘fair’], due to its “major network bottlenecks, causing delays and high transactions costs”. None of the 74 cryptocurrencies the agency assessed got an A rating [note: A = ‘excellent’]. However, assigning low grades has become “something of a trademark for Weiss Research”, as NYTimes noted as early as 1992. Ether, EOS, Cardano, and Steem are among the cryptocurrencies with the highest ratings.
The Weiss Cryptocurrency Ratings evaluate price risk, reward potential, blockchain technology, adoption, security, and other factors, the agency said. However, the importance assigned to each criterion seems to vary, since the issued ratings “overvalue transaction capacity and undervalue protocol stability, security, and decentralization,” Ari Paul, chief investment officer at cryptocurrency investment firm BlockTower Capital, said.
According to the Weiss Cryptocurrency Ratings release, Bitcoin (rated C+) “gets excellent scores for security and widespread adoption. But it is encountering major network bottlenecks, causing delays and high transactions costs. Despite intense ongoing efforts that are achieving some initial success, Bitcoin has no immediate mechanism for promptly upgrading its software code”.
Ethereum (B) “benefits from more readily upgradable technology and better speed, despite some bottlenecks”.
Novacoin (D) and SaluS (D) “are weak in terms of both technological innovation and adoption”.
Steem (B-) “enjoys a relatively good balance of moderate strength in nearly all the key factors considered along with a social network feature”.
The Weiss Cryptocurrency Ratings were met with mixed reactions, as specialists claimed that the agency misunderstood the core value proposition of cryptocurrency. The agency’s website was reportedly hit with denial of service attacks from those displeased with the grades.
“Weiss Ratings staff was up all night last night fending off denial of service attacks from Korea.”
“Earlier commentary on social media expressed considerable fear we were about to release negative ratings on their preferred currencies,” said Weiss Ratings founder Martin D. Weiss.