CoinMarketCap, the most popular market data aggregator, has added a new rating system to its site. A third-party metric called the Fundamental Crypto Asset Score (FCAS) was quietly added this week. Rather than ranking cryptocurrencies by market cap, FCAS assigns letter grades based on each coin’s “health,” as seen below:
How Does It Work?
By default, CoinMarketCap and most other market aggregators rank cryptocurrencies by their market cap. This measure is simply the total price of a cryptocurrency’s entire coin supply. Unfortunately, market cap data can be easily manipulated, and prices are always in flux. FCAS is one of several alternatives.
FCAS provides a weighted measurement of each cryptocurrency based on the activity of its users and developers. Market data also comes into play, but to a lesser extent. The end result is a picture of how active a particular crypto project is. This should be useful for investors, who earn from growth. FCAS explains:
“Thinking about investing in a coin? You probably want to get…