{"id":15178,"date":"2020-06-16T21:25:51","date_gmt":"2020-06-16T21:25:51","guid":{"rendered":"http:\/\/mediashower.com\/blog\/?p=15178"},"modified":"2020-12-08T19:39:37","modified_gmt":"2020-12-08T19:39:37","slug":"introducing-the-industry-leading-digital-asset-rankings","status":"publish","type":"post","link":"https:\/\/www.mediashower.com\/blog\/introducing-the-industry-leading-digital-asset-rankings\/","title":{"rendered":"Introducing the Industry-Leading Digital Asset Rankings"},"content":{"rendered":"

I am proud to announce the biggest project we\u2019ve undertaken at Bitcoin Market Journal: our new Digital Asset Rankings<\/a>. Think of them like \u201cstock ratings for tokens.\u201d<\/p>\n

The project started last year, after we developed our industry-leading Blockchain Investor Scorecard<\/a>. \u201cWhat if we used this to create a list of top tokens, kind of like a Morningstar or Moody\u2019s rating system?\u201d I asked our editor Alex Lielacher.<\/p>\n

\u201cThe Blockchain Investor Scorecard is great,\u201d said Alex, \u201cbut it\u2019s a qualitative<\/strong> analysis, which is only half the picture. We also need some kind of quantitative<\/strong> metrics.\u201d<\/p>\n

\u201cThe conjoined twins of investing,\u201d I nodded, remembering the image from my book<\/a> (pictured above).<\/p>\n

\u201cMaybe we could find metrics that would serve like market indicators,\u201d suggested our analyst Kevin Kelly, \u201cin the same way that stock investors use metrics like Earnings Per Share.\u201d<\/p>\n

Everyone agreed this was a good idea.<\/p>\n

In hindsight, it was <\/em>a good idea, but we had no idea how difficult this good idea would be.<\/p>\n

First, there are no commonly agreed metrics for Digital Assets (i.e., tokens or cryptocurrencies), so we had to build everything from scratch. And that\u2019s just math: when it comes to \u201cmatters of opinion,\u201d as in our Blockchain Investor Scorecard, everyone had an opinion. (Just ask Twitter.)<\/p>\n

So Alex, Kevin, and our analysts Justin Caldwell and Adam Carpenter used our Blockchain Investor Scorecard, combined with an internal review process of thoughtful debate, helping us \u201cfind the truth together.\u201d (Thanks to Ray Dalio<\/a> for this principle.)<\/p>\n

We are incredibly proud of what we\u2019ve accomplished, which we\u2019re making available to everyone, free of charge. Click here to check out our new Digital Asset Rankings<\/strong><\/a>.<\/p>\n

Three principles guided our work.<\/p>\n

Principle 1: Usability<\/h2>\n

In a nutshell, our goal is to give you each digital asset in a nutshell<\/strong>. Helpful star ratings (our overall, deep-dive qualitative rating) are complemented by one or more quantitative metrics.<\/p>\n


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By having multiple data points for each asset, you can more quickly determine at a glance <\/em>whether a token is worth considering in your investment portfolio\u2014without poring over dictionary-sized books, or wading through 60-minute YouTube videos.<\/p>\n

Each column is sortable.<\/strong> For example, you can sort by Token Velocity<\/strong><\/a> <\/strong>to see which tokens are changing hands most frequently. Liquidity is a good data point for whether a digital asset has a lot of active buyers and sellers \u2013 but liquidity alone would not be a reason for buying or selling.<\/p>\n

By cross-checking liquidity with our star ratings, however, you get a better picture of the overall strength of a digital asset as a potential investment. If you’re interested, click to dig into our full scorecard rating. We’ve designed our rating system for usability.<\/p>\n


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Principle 2: Quality<\/h2>\n

Our goal is\u00a0digital asset ratings that reflect reality,\u00a0rather than overhyping a token that we\u2019re getting paid to promote. (At\u00a0Bitcoin Market Journal,<\/em>\u00a0we don\u2019t accept any paid promotion.) In other words, we\u2019re trying to identify investments that are likely to grow in the future.<\/p>\n

To do this, we used our Blockchain Investor Scorecard, which is our open-source scorecard that is used to deep-dive on the most important aspects of a blockchain-based digital asset. (Learn more about the\u00a0Blockchain Investor Scorecard here<\/a>.)<\/p>\n

We complemented this with our three ratios \u2014\u00a0NVM Ratio<\/a>,\u00a0NVT Ratio<\/a>, and\u00a0Token Velocity<\/a>\u00a0\u2014 which you can view like stock fundamentals. Note that not all digital assets have NVM or NVT, because not all digital assets have transparent blockchains \u2014 which brings us to our last principle.<\/p>\n

Principle 3: Transparency<\/h2>\n

Our goal is an\u00a0open-source rating system that anyone can use. We want to be\u00a0radically transparent<\/em>\u00a0with how we get to our ratings. You may not agree, but you at least can see our expert thinking that went into it.<\/p>\n

We believe that the days of closed, proprietary, secret rating systems are over. They lead to systemic problems where the entire economy becomes \u201cpay to play,\u201d as illustrated in this great scene from\u00a0The Big Short<\/em><\/a>:<\/em><\/p>\n


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