Financial institution ratings agency Weiss Ratings has today released its first ever grades for cryptocurrencies, rating Ethereum (ETH/USD) higher than Bitcoin (EXANTE: Bitcoin), according to a release on the agency’s website.
Weiss said it gives Bitcoin a C+ (meaning “fair”) grade. None of the 74 cryptocurrencies the agency covers received an "excellent" A rating. B-rated (“good”) Ethereum and digital currency EOS have the highest ratings.
The agency said Bitcoin received a "fair" C+ rating because the digital currency 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," it said.
The Weiss Cryptocurrency Ratings evaluate price risk, reward potential, blockchain technology, adoption, security, and other factors.
“Despite extreme price volatility, cryptocurrencies have a bright future and the potential to deliver unusually large profits to investors,” said Weiss Ratings founder Martin D. Weiss, Ph.D.
“However, the market is hectic and confusing for investors. They need the clarity that only robust, impartial ratings can provide,” he added.
The agency said that "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 hackers then broke into the website, took information from it and are distorting it on social media, the company said.
Weiss Ratings, which began in 1971, rates 55,000 institutions and investments.