Weiss Ratings LLC, the company responsible for the recent Cryptocurrency gradings has been updating those who signed up for their Cryptocurrency newsletter with regular updates throughout the current Crypto crash:
Last week, we caused global outrage with our C+ rating for Bitcoin. We were cursed, ridiculed and laughed at. One group even tried to mount a cyberattack against our Weiss Ratings website.
But yesterday, the price of Bitcoin plunged from $10,908 to $9,723. Nearly 11% in just 13 hours.
Although in our opinion the gradings from Weiss Ratings LLC were fair and responsible, their reaction to the current crash does seem to be on the verge of gloating, this newsletter sent out on 31st January 2018 continues:
What about last year’s horrible Christmas Crash that saw Bitcoin plunge from an intraday peak of about $20,000 to less than $10,000 in two weeks flat?
“Bah! We don’t care,” say Bitcoin veterans. “And if Bitcoin made you millions or billions of dollars like it did for us, you wouldn’t care either. We’ve seen the same thing happen before, or worse. After the last big crash, Bitcoin surged more than 20-fold. We love Bitcoin. That’s why we’re hodlers and always will be.”
So you can imagine their outrage last Wednesday, when we announced the first-ever crypto ratings and had the audacity to peg Bitcoin at a lowly C+ (“fair”).
Just a few days later on 2nd February 2018 another newsletter was received:
NOW do you see why NO cryptocurrency got an A in our inaugural ratings release last week?
NOW does it make more sense why Bitcoin got a C+?
NOW do you understand why the industry’s outrage against our ratings was, in itself, a telltale sign of more troubles ahead?
You see, from the outset, all of the risks evident in the market today have been factored into our Risk Index.
But the good news is that much of the greed and hype is getting cleansed from the market even as we speak.
Although I feel many were a little harsh on Weiss Ratings for their gradings of various cryptocurrencies it does feel like these follow up newsletters are slightly childish and more of a ‘Told You So!’ response to the public uproar over their ratings rather than useful advice for investors.
Weiss Ratings clearly decided to begin reviewing and grading the Cryptocurrency market as an attempt to generate more public interest in their business, this has undoubtedly been successful. But the fact remains that the Cryptocurrency markets cannot be graded accurately at this point in time, with so little historical data available to grade one higher than another is pure speculative and opinion based. Bitcoin has the most data available and yet still is not enough to determine any long term surety of where it’s value is heady.
I’m sure we can expect many more newsletters from Weiss Ratings LLC over the coming weeks and months, especially when a Crypto they graded well appreciates and one they graded poorly crashes out.