Over the last couple of months you may have noticed that aelf has received some impressive ratings from DPRating. For many of you, this might have been the first time you have heard of this rating system or the company altogether. This article will give a brief explanation of what the rating is and how it is calculated.
Who is DPRating?
DPRating is a project which launched their first rating system in June 2017. Since then they have had multiple iterations and adoptions to their rating system to improve its reliability and focus. The team’s goal is to provide comprehensive rating and reviews on the top crypto token projects with comprehensive groundwork and reliability. The rating system identifies two elements to rate, the risk factor and the investibility of the given project.
Risk Assessment
The risk assessment is graded into five categories ranging from A-E, with A being ‘Very Low Risk’ and E being ‘Very High Risk’. The assessment is broken up into 4 factors:
1. Transparency
2. Authenticity
3. Fundraising & Compliance
4. Adjustable Factor
Transparency
This factor looks at the basic components of the project, such as the whitepaper, team, office location etc. The main focus here is to ensure the team and project has a level of credibility that is readily available to the public.
Authenticity
This focuses a little bit more on the team and the community surrounding them. They look at how much of the hype is ‘project generated’ and how much is ‘natural interest’ in the project.
Fundraising & Compliance
By looking at how the fundraising was completed as well as the allocation and distribution of these funds, DPRating can gain an insight into the project’s ability to manage their finances and how trustworthy they are. One can also gain confidence in a project based on their compliance and policy strategies.
Adjustable Factor
This is a simple component which looks directly at the market cap and how it relates to the use case and project’s ability to maintain their particular market cap price.
The Investibility
The Investibility of the project is broken up into 10 ratings from AAA down to D. DPRating looks at four components when assessing a particular projects investibility:
1. Project
2. Team
3. Community & Popularity
4. Adjustable Factor
Each component is broken down into individual ratings depending on their findings and can record positive, negative or no points. These points are then added up and used to obtain the investibility rating. This area focused quite heavily on the ability for the project to meet a real world need and the background and experience of the team. These first two components make up for 70% of the ratings available points. In fact, aelf reached a rating of 79.5 points which, although it falls within the Bb rating, it is only 0.5 points off from a Bbb rating. This would put aelf in second place among all projects that have received a DPRating to date.
DPRating has left room for projects to grow with the re-assessment of projects and review of ratings periodically. They have also left a component of both Risk Assessment and Investibility which looks specifically at where the project is in relation to their roadmap and launch. Over the coming months, it will be interesting to see how the launch of the aelf mainnet will improve on the overall projects ratings.
