China’s Ministry of Industry and Information Technology recently released its own ratings for cryptocurrencies. The domestic ratings placed Ethereum (ETH) at 1st score and Bitcoin (BTC) at 13th position out of 28 cryptos. According to China Electronics News (CEN), the Chinese top five digital currencies include ETH, and then followed by Steem, List, NEO and Komodo.
The Chinese government becomes the first to offer cryptocurrency ratings globally. The China Center for Information Industry Development (CCID), a research unit under the industrial ministry, introduced its monthly crypto ratings index recently and it’s focusing on 28 crypto coins and their respective blockchain technologies.
According to CCID, the rating index is based on three key categories; technology, application, and innovation. However, the methodology used in conducting the research is not yet published. The Ministry is planning to expand the project to include all the popular blockchain development and other crypto assets found across the world.
On the three indexes, ETH scored highly on all the three; technology, application, and innovation giving it a leading position in the rankings. BTC failed to score high in technology and application fields, though it emerged number one in innovation.
Basing on the research findings, ETH appears to be the leading second-generation blockchain technology in the region. However, cryptocurrency commentators found it hard to accept the logic behind the ratings and most of them expressed their dissatisfaction on Twitter and other social media platforms.
The Need for Crypto Ratings
According to CCID, there is no an independent analysis of cryptocurrencies and blockchain that could serve as a guide for the government, business entities, and research institutions. There are various crypto ratings published recently by agencies such as Weiss in the US but they are focused only on trading. Hence the Chinese government made the decision to set the pace for the industry by published official ratings for crypto assets.
Last year, China banned all the domestic initial coin offerings (ICOs) and crypto mining though the country has embraced the use of blockchain technology. Due to the financial risks associated with the industry, the ratings would help investors to make concrete decisions before investing.