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Navigating the Digital Securities Market: Our Innovative Rating Agency is setting standards

Challenges Confronting the Crypto Industry

The lack of crypto token ratings is a major challenge in the cryptocurrency market. Investors have limited access to reliable and standardized information, making it difficult to assess the quality, risk and potential of tokens. This lack of transparency increases the risks associated with investing in unrated tokens and potentially exposes investors to fraud and poorly designed schemes. Also, due to the lack of unbiased

ratings, the market is subject to increased price volatility, which is eroding investor confidence. Without standardized assessments, regulatory oversight becomes more difficult, making it harder to detect potential breaches and market manipulation. Overall, the lack of reviews contributes to market fragmentation and hinders the development of a cohesive and trustworthy crypto ecosystem.

Solving the Challenges of Non-Rated Crypto Tokens Through Comprehensive Ratings

Rating agencies play a key role in addressing issues related to the lack of ratings for crypto tokens. By providing credible and standardized ratings, rating agencies offer investors access to important information about the quality, risk and potential of tokens. Through transparent and unbiased ratings, rating agencies help investors make informed decisions, thereby reducing the risks associated with investing in unrated tokens. In addition, rating agencies contribute to market stability by reducing price volatility and increasing investor confidence. Their ratings also help regulators monitor the market, spot potential violations, and promote a safer investment environment. Ultimately, rating agencies support market transparency, trust, and the development of a consistent and trustworthy crypto ecosystem

What?

The crypto market has been plagued with some cases of outright fraud, or cases where the project never comes to fruition. Without regulatory oversight .and mandated disclosures, investors often have minimal information about a crypto asset.

Why?

According to various estimates, there can be an average of 5-6 crypto asset issuances every day in 2018. This sheer volume of ICOs makes it impossible for a diversified investor to analyze each of those crypto assets properly.

How?

Our rating system provides an objective analysis of the underlying business (along with various other factors) and hence while not guaranteed fraudulent crypto asset with frivolous or non-existent underlying businesses may be filtered out during the process, and can help investors separate the wheat from the chaff.

Rating Platform

The Crypto Asset Rating Platform (CARP) is divided into several categories to ensure salient qualitative and quantitative issues are considered. The rating algorithm has been being developed by a group of co-founders having vast experience in the capital markets. We have identified 15+ categories with over 150 rating parameters. In addition to CAR’s in-house rating experts with varied domain expertise, we measure community confidence through our “Crowd Score”, which are gathered from a selected pool of external rating analysts. Our rating solution is developed on blockchain technology so as to maintain decentralization, transparency, auditability and most importantly a stringent rating governance structure. Refer to the Rating Model section for details on the rating algorithm, rating grid and governance structure.