How we rate
We aim to use our special ratings scale which is based on the core aspects of stability and risk the lower the rating the higher the chance of risk, high ratings would implicate stability on a cryptocurrency basis, as we all know Cryptocurrencies are very volatile so the stability will be based on the cryptocurrency market. We also rate cryptocurrency exchanges with the same scale but a very different criteria.
The process is that the cryptocurrency sends us information which is sufficient to make a rating on, we aim to implement these steps in the rating procedure:
Potential, volatility, competitors, Political-Economic-Social-Technological in exceptional circumstances Legal and Ethical (PESTLE) also a thorough SWOT analysis and financial information from the cryptocurrency.
With an exchange we carry out analysis on it and the overall trading system to check for risk, security and any technical or consumer affecting risks.
Then the data is analysed and presented to a panel of individuals who each give a rating number from 1-13 and after this we calculate the mean and the rating is selected from the scale, in exceptional circumstances though the acting panel director can enforce a directors call where they can upgrade or downgrade the panels average but only by 1.
Ratings scale
*AAA+ 14
AAA 13
AA+ 12
AA 10
AA- 9
A+ 8
A 7
A- 6
BBB 5
BB 4
B 3
CCC 2
*CCC- 1
*NR
*XX
*RA
*RH
The (AAA+) and (CCC-) are very exceptional the highest possible would realistically be AAA and lowest would be CCC but if a cryptocurrency or exchange displays the wrong rating and alters our rating we will enforce a strong approach and automatic carry out a full investigation, we will after the investigation if found guilty award a maximum penalty of CCC- downgrade regardless of which rating was given originally. These ratings will be reviewed every quarter unlike the other ones which are reviewed half yearly.
The NR rating means No rating was given due to insufficient information for our analysis from the counterparty.
The XX rating means that the currency or exchange has been shut down/scrapped and is no longer operational
The RA rating stands for rating appeal where an exchange or currency doesn’t agree with our rating a failed appeal leads to an automatic downgrade by one.
The RH rating means that rating has been halted due to large external influences such as economic turmoil or market crashes such as the 2008 subprime mortgage crisis, very large market crashing events globally, this rating is an emergency rating. Ratings will be resumed depending on government and any information we get on the scenario.
We will alongside the ratings deliver personalised feedback on why the panel selected the rating in question, we will not disclose any information about competitors or our clients and the rating given is voluntary and not legally obliged to display “but it would be nice if you did.
We aim to use our special ratings scale which is based on the core aspects of stability and risk the lower the rating the higher the chance of risk, high ratings would implicate stability on a cryptocurrency basis, as we all know Cryptocurrencies are very volatile so the stability will be based on the cryptocurrency market. We also rate cryptocurrency exchanges with the same scale but a very different criteria.
The process is that the cryptocurrency sends us information which is sufficient to make a rating on, we aim to implement these steps in the rating procedure:
Potential, volatility, competitors, Political-Economic-Social-Technological in exceptional circumstances Legal and Ethical (PESTLE) also a thorough SWOT analysis and financial information from the cryptocurrency.
With an exchange we carry out analysis on it and the overall trading system to check for risk, security and any technical or consumer affecting risks.
Then the data is analysed and presented to a panel of individuals who each give a rating number from 1-13 and after this we calculate the mean and the rating is selected from the scale, in exceptional circumstances though the acting panel director can enforce a directors call where they can upgrade or downgrade the panels average but only by 1.
Ratings scale
*AAA+ 14
AAA 13
AA+ 12
AA 10
AA- 9
A+ 8
A 7
A- 6
BBB 5
BB 4
B 3
CCC 2
*CCC- 1
*NR
*XX
*RA
*RH
The (AAA+) and (CCC-) are very exceptional the highest possible would realistically be AAA and lowest would be CCC but if a cryptocurrency or exchange displays the wrong rating and alters our rating we will enforce a strong approach and automatic carry out a full investigation, we will after the investigation if found guilty award a maximum penalty of CCC- downgrade regardless of which rating was given originally. These ratings will be reviewed every quarter unlike the other ones which are reviewed half yearly.
The NR rating means No rating was given due to insufficient information for our analysis from the counterparty.
The XX rating means that the currency or exchange has been shut down/scrapped and is no longer operational
The RA rating stands for rating appeal where an exchange or currency doesn’t agree with our rating a failed appeal leads to an automatic downgrade by one.
The RH rating means that rating has been halted due to large external influences such as economic turmoil or market crashes such as the 2008 subprime mortgage crisis, very large market crashing events globally, this rating is an emergency rating. Ratings will be resumed depending on government and any information we get on the scenario.
We will alongside the ratings deliver personalised feedback on why the panel selected the rating in question, we will not disclose any information about competitors or our clients and the rating given is voluntary and not legally obliged to display “but it would be nice if you did.