April 24, 2024

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[THE INVESTOR] US-based independent rating agency Weiss Ratings on Jan. 24 released grades for global cryptocurrencies, even as it claimed that Korean investors tried to thwart its move.

In what the agency claims to be the first-ever rating of digital currencies, it issued a “B” rating meaning “good” for the second largest currency Ethereum, and a “C+,” indicating “fair” for the most famous Bitcoin. 

Explaining its rationale, Weiss Ratings said while Bitcoin garnered excellent scores for security and widespread adoption, it “has extreme price volatility and is encountering major network bottlenecks, causing delays and high transactions costs.” 

On the other hand, Ethereum, the second most widely adopted digital currency, “benefits from more readily upgradable technology and better speed, despite some bottlenecks,” according to Weiss Ratings.

Out of the 74 digital currencies rated, Ethereum and EOS received the highest ratings.

Ripple, the third-largest in terms of market capitalization, got a “C” due to “repeated price crashes and heavy centralization and control by its creators.”

“Despite extreme price volatility, cryptocurrencies have a bright future and the potential to deliver unusually large profits to investors,” said Martin D. Weiss, founder of the agency, in a statement. “However, the market is hectic and confusing for investors. They need the clarity that only robust, impartial ratings can provide.”

Meanwhile, the agency also claimed to have suffered a series of cyberattacks from Korean cryptocurrency investors who were worried about negative ratings.

In a release earlier this week, Weiss said that “the staff was up all night last night fending off denial of service attacks from Korea” and cited Korean social media posts calling others to bring down the ratings agency’s website. 

The Korean won is the third-most traded currency for cryptocurrencies and local digital coin exchanges such as Upbit and Bithumb have become one of the world’s top five exchanges, according to data from CoinMarketCap, a global index of cryptocurrency prices.

Founded in 1971, Weiss Ratings provides letter grades to about 55,000 institutions and investments.



By Park Ga-young (gypark@heraldcorp.com)