Methodology | Digital Rating Agency
Evaluation of Investment Attractiveness
These are the basic elements of methodology of evaluation we use to determine the degree of investment attractiveness of ICOs.
1
Open source information
Analysis of all available information and documentation of a project placed publicly on official web site and other resources.
2
Economic performance
Market and industry trends review in order to identificate the concrete problems that the project aims to solve. Analysis of competitive environment and comparison of the project's idea with alternative existing and potential solutions of competitors. Audit of competitive strategy and business model developed by the project team.
3
Financial attractiveness
Analysis of financial plan and funds distribution, evaluation of a development strategy (short- and long-term prospects).
4
Tech realization
Feasibility of blockchain solution proposed by the project, technology stack and source code analysis - working prototype or MVP. Security vulnerability analysis.
5
Token economics
Integration of token into business processes, connection of its exchange rate and internal business processes. Protection against assets devaluation, amount of issuance - soft and hard cap.
6
Legal expertise
Assessment of a legal structure of the project and all affiliated companies. Analysis of Token Sale Agreement, Privacy Policy, Terms & Conditions. Compliance with AML / CFT and FATCA requirements. Investigation of legal status of tokens.
7
Team analysis
Communication with the team, analysis of experience of the founders and key team members.
8
Marketing strategy and partners evaluation
Evaluation of investors' interest and existing or planning agreements with industry partners/big customers.
Rating scale of investment attractiveness
Rating reflects expectations for a change in the value of a token within six months from date of assignment of estimates
Very high
High probability of investment return, low sensitivity to market conditions
High
Medium-to-high probability of investment return, considerable sensitivity to market environment
Satisfactory
Considerable risk exposure, high sensitivity to market conditions
Low
Low development potential, highly speculative investment
Very low
High default risk in the short term
Default
In default, with little-to-no prospect for recovery
Rating scores express an opinion of Digital Rating Agency and do not have any fact-finding mission or recommendations to buy, own, sell any of the assets or take any investment decisions. Digital Rating Agency does not undertake any responsibility for any consequences, interpretations, judgements, recommendations and other actions directly or indirectly related to the rating score, the rating assessments from Digital Rating Agency, any summary and conclusions contained in the rating report and rating releases, or the absence of abovementioned. The only source, depicting the real state of the rating score, is the official site www.digrate.com
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Disclaimer
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Rating scores express an opinion of Digital Rating Agency and do not have any fact-finding mission or recommendations to buy, own, sell any assets and take any investment decisions. Digital Rating Agency does not undertake any responsibility for any consequences, interpretations, judgements, recommendations and other actions directly or indirectly related to the rating score, the rating operations conducted by Digital Rating Agency, any summary and conclusions contained in the rating report and rating releases, or the absence of abovementioned. The only source, depicting the real state of the rating score, is official site www.digrate.com