It’s been 3 months since TokenInsight Rating v2 went live in November. Let’s take a look at what has changed in these 3 months and what trends can be seen through the rating results.
Among all projects, the largest number of projects are at BB, accounting for about 25% of the total rated projects. As the rating results improve/decline on both sides, the number of projects corresponding to the rating results gradually decreases, basically showing the characteristics of a Normal distribution.
The rating score is an objective score used to determine the rating result, and each rating result corresponds to a certain score range. When a project’s qualification or risk changes, it is first reflected in the score, but the rating result does not necessarily change. The rating score provides a more detailed picture of dynamic changes.
As we can see, the current market environment is slightly less favorable than it was before the FTX bankruptcy. While the FTX bankruptcy was a devastating blow to the Crypto industry, it has also given rise to more opportunities, with more latecomers emerging and new technologies and projects taking shape.
The global market cap of Crypto market has returned to the level it was at the beginning of November, before FTX went bankrupt. The Top 10 ratings have not changed much, with FTX Token unsurprisingly dropping out of the Top 10 list and being replaced by Cosmos.
The average score of Bitcoin and Ethereum quickly returned to their previous levels after a brief drop in the FTX bankruptcy, indicating that the long-term outlook for the Crypto market as a whole remains positive.
The average score of DeFi tokens rose 3%, making it the only type to close with a higher score. Public chain and exchange tokens stabilized after declines of 6% and 12%, respectively. Most public chains as well as exchanges have been affected by the panic exodus, and in the face of the crisis, only Bitcoin and Ethereum are the only places where people feel safe.
We describe the future trend of a project’s rating by its outlook. Generally, we believe that projects with positive outlooks have the opportunity to upgrade their ratings in the next 3-6 months. Conversely, a project with a negative outlook has the potential to be downgraded in the future.
Please note that our project ratings only evaluate the qualification and risk level of a project and cannot be used as investment advice.
For a number of well-known reasons, the rating of FTX Token has plummeted from AAA to D in a short time.
The rating of Solana has been downgraded from AA to BB.
- In any ecosystem, developers are always the most important. Active developers can constantly bring innovative projects to harvest more users. However, the developer activities of Solana keep declining during the bear market, which was even worse after the FTX collapse.
- As mentioned above, Solana TVL dropped by 72%
- Its native coin, $SOL, once was $260 in the bull market (November 7, 2021), but fell nearly 90% in the bear market. It even fell all the way below $10 due to FTX bankruptcy.
- In light of the damage to the reputation of FTX and Alameda (Solana’s major backers), we had re-evaluate the performance of Solana’s Investors.
Huobi Token’s rating was downgraded from A to BBB due to a series of operational issues that came to light after Huobi was acquired by Justin Sun, as well as a decline in overall trading volume.