Join Our Mailing List
Monday January 30, 2023
Bitcoin (BTC) $23,117.19   Ethereum (ETH) $1,580.84
  • Events
  • News
    • Blockchain Technology
    • Capital Raising
    • Crypto Exchanges
    • Crypto Payments
    • Gaming & Betting
    • Investment Management
    • M&A
    • Mining
    • Networks & Protocols
    • Security
    • Vendor Technology
    • Wallets
Trezor Model T
CryptoNinjas
  • Crypto & Blockchain Links
  • Real-Time Market Data
  • Bitcoin ATM Map
  • Token Offerings/Listings
No Result
View All Result
CryptoNinjas
Home Token Offerings/Listings

Benjamin Rickenbacher of Alethena: “The ICO world is still too small”

Published by CryptoNinjas.net
06/18/2018
Blockchain rating prototype Alethena begins first Swiss compliant ICO

A wave of Initial Coin Offering (ICO) ‘rating agencies’ arrived in recent months, but their trustworthiness is a problem. Many believe that these ICO ratings have been inflated, with businesses paying for positive results. In a sector sorely lacking in credibility, the inflationary awarding of five-star ratings – for projects that don’t offer much substance – is having a negative impact on the industry and putting investors at risk.

Benjamin Rickenbacher, Chief Scientific Officer at Alethena recently conducted an interview with BTC-Echo in German, which is translated below. Alethena is a new Swiss ICO rating agency, that believes it is fundamentally different from this initial wave of faux-rating providers.

Rickenbacker delved a little deeper into the situation with ICOs, how they’re rated and how Alethena aims to build trust and credibility.

Why should I trust your ICO ratings? What measures have been taken to bring credibility to your ratings?

Firstly, we have one sole focus: rating ICOs. That means no on-the-side consulting, no trading, no advisory and no ICO-as-a-service – the classic add-ons that these initial service providers offered, as extra ways to make a quick buck. In addition, the rating fee is fixed by the company and transparent for the public to see.

We also carry out a ‘fundamentals-based’ rating. This means we use a rigorous methodology to analyze all aspects that we believe are important to the success of an ICO. We do not rely on follower numbers or random opinions from the crowd, but on facts such as having a solid business plan, supporting materials like a whitepaper, product specifications, and existing prototypes and code.

To really carry out a detailed analysis of a blockchain startup, there is often a lack of necessary data to inform decisions. Is that fair – and if so, are ICO ratings still useful?

It’s a good question – and important to note that we base our ratings on information we receive directly from the ICOs. That means some of the information is not necessarily public – such as contracts, patents, and other confidential information. Of course, a startup will not be able to deliver the same depth of detail that a longstanding business could. But if essential information is missing (such as uncertainty around token distribution, use of funds or technical documentation), this will be noted and leads to a lower rating.

Which criteria do you weight most heavily, in evaluating these blockchain-based startups?

It differs depending on the type of project since a token offering can be very different depending on the business case. When a completely new chain is developed, the main focus is on the network itself and its technical dimensions. In any case, the legal setup needs to be adequate and transparent.

I hear China has launched a government cryptocurrency rating agency. What do you think about this?

The fact that the Chinese state is jumping on the bandwagon shows the enormous market potential here, as well as the need for ratings. Based on the report published in mid-May, a total of 28 cryptocurrencies were evaluated by experts in terms of technology, application, and innovation. Our methodology stands out because we can value not only cryptocurrencies but holistic companies that issue blockchain assets such as equity tokens and bond tokens. We also believe that sources of subjective ratings through ‘experts’ are less reliable – can you really trust these are carried out objectively, independently and transparently?

What about the established rating agencies? Could you imagine a future where the three major rating agencies – Standard & Poor’s, Moody’s and Fitch Ratings – also rate ICOs and cryptocurrencies?

You certainly can’t write that off as a possibility. However, at the moment I think the market entry of an accredited rating agency is very unlikely. Firstly, their ratings are primarily based on large volumes of financial data. So without consistent financial figures over several years, the typical credit rating approach cannot be applied – and for startups, of course, that type of data is hard to come by. And finally, the ICO world is growing incredibly quickly – but for now, it’s still too small for some of these established players to get involved. That’s why we believe it’s the right time and a great opportunity for a new, specialized rating provider like Alethena.

FacebookTwitterLinkedinRedditE-MailTelegram

Related News

Blockchain rating prototype Alethena begins first Swiss compliant ICO

06/06/2018
Blockchain rating prototype Alethena begins first Swiss compliant ICO

Alethena, a Blockchain-Asset Rating Agency, and now the first compliant Swiss Initial Coin Offering (ICO) today launched its token sale, following a successful pre-sale. With the aim of being a role model for best...

Read more
Load More
Leave Comment

Where to Exchange

Leading crypto suite in Spain & LATAM Visit
European bitcoin exchange Visit
Swap & buy 150+ cryptocurrencies Visit
First U.S. regulated BTC exchange Visit
  • Trending
  • Latest
Trust Wallet launches anticipated browser extension of its crypto management app

Trust Wallet launches anticipated browser extension of its crypto management app

11/14/2022
Crypto derivatives exchange Deribit to put in place trade surveillance platform from Eventus

Crypto derivatives exchange Deribit to put in place trade surveillance platform from Eventus

01/24/2023
6 Best Cloud Mining Platform In 2022

6 Best Cloud Mining Platform In 2022

11/20/2022
Where Exactly Can You Spend Monero Cryptocurrency?

Where Exactly Can You Spend Monero Cryptocurrency?

10/20/2021
Crypto derivatives exchange Deribit to put in place trade surveillance platform from Eventus

Crypto derivatives exchange Deribit to put in place trade surveillance platform from Eventus

01/24/2023
Crypto exchange Gemini launches new electronic OTC trading solution

Crypto exchange Gemini launches new electronic OTC trading solution

01/19/2023
Crypto securitization platform-GenTwo links to all Coinbase assets

Crypto securitization platform GenTwo links to all Coinbase assets

01/14/2023
Blockchain ecosystem ThunderCore teams with Huobi and MyCointainer in node expansion

Blockchain ecosystem ThunderCore teams with Huobi and MyCointainer in node expansion

01/05/2023
  • Home
  • Directory
  • Data
  • About
  • Contact
SUBSCRIBE

© 2016 - 2023 CryptoNinjas Disclosures | Privacy Policy

  • Home
  • Crypto Links
  • Market Data
  • Blockchain Tech
  • Exchanges
  • Capital Raising
  • Vendor Technology
  • Token Offerings/Listings
  • Payments
  • Wallets
  • Bitcoin ATM Map
  • Conferences & Events
  • About
  • Contact
No Result
View All Result

© 2016 - 2023 CryptoNinjas Disclosures | Privacy Policy