Asset Ratings

CRC Securities Framework Asset Ratings

This page shows the latest securities framework asset ratings published by the Crypto Rating Council, LLC ("CRC"). These ratings are the sole and independent work product of the CRC. The ratings and other CRC work product are not endorsed by any asset development team or foundation, any regulator, or any other third party. Scores are subject to change at any time without notice.
See other important information below and on our FAQs page.

Algorand
ALGO
·
2.00
  • Designed to function as a blockchain development platform facilitating cryptocurrency transactions and payments settlements, as well as programming of smart contracts and dApps, focusing specifically on the development of financial technology-related dApps
  • Uses a pure proof of stake consensus mechanism
  • Mainnet released in June 2019
  • Algorand Foundation, a Singapore foundation, conducted and completed a token sale outside of the United States raising a reported $62 million in June 2019.
  • Algorand Foundation is a governance and research organization facilitating participation and development on the Algorand platform
  • Algorand Inc., an independent company from Algorand Foundation, raised $4M in equity seed funding

Asset last reviewed: August 14, 2019

Augur
REP
·
3.75
  • Designed to function as a protocol that allows users to create their own market predictions
  • Mainnet launch took place in July 2018; the launch of Version 2 is still to be determined.
  • The Forecast Foundation helps to develop Augur
  • Forecast Foundation conducted a token sale in 2015 which reportedly raised $5.1 million
  • Forecast Foundation raised $918,000 in convertible note rounds
  • Reportedly fully open-sourced

Asset last reviewed: August 14, 2019

Basic Attention Token
BAT
·
2.00
  • Designed to reward and incentivize usage of the Brave Browser and viewing of targeted advertisements
  • Token sale took place in May 2017
  • BAT tokens were integrated into the Brave Browser system developed by Brave Software Inc. in June, 2017
  • Brave Software Inc. plays an ongoing role in the development of the Brave Browser and BAT token
  • Brave reportedly has over 10 million active monthly users and at least 330,000 verified content creators that have signed up for Brave Rewards as of December 10, 2019
  • Reportedly fully open-sourced

Asset last reviewed: February 21, 2020

Bitcoin
BTC
·
1.00
  • Designed as a decentralized digital currency that can be sent from user to user on the peer-to-peer Bitcoin network without the need for intermediaries
  • Uses a Proof-of-Work (PoW) system
  • The Bitcoin network was created on January 2009
  • Fully open-sourced

Asset last reviewed: August 21, 2019

Chainlink
LINK
·
2.00
  • Designed to bridge the gap between on-chain smart contracts and off-chain businesses and data
  • The ChainLink mainnet went live in May 2019
  • ChainLink interfaces with Smart Contracts on the Ethereum blockchain, and is intended to work with multiple networks in the future.
  • Token sale in September 2017 reportedly for $32 million USD
  • Reportedly fully open-sourced

Asset last reviewed: September 4, 2019

Cosmos
ATOM
·
3.75
  • Designed to facilitate access to Cosmos, a blockchain development and interoperabilityplatform
  • Uses a proof-of-stake consensus mechanism
  • Mainnet launch took place in March 2019
  • The ATOM fundraising event took place April 2017, reportedly raising approximately 4.87k BTC and246.89k ETH
  • Tendermint completed a SeriesA investment round in March 2019
  • Tendermint is engaged in ongoing development of the Interblockchain Communication (IBC)mechanism for Cosmos, and submits proposed modules that are accepted or rejected by the Cosmos decentralized community
  • Reportedly fully open-sourced
  • Over 100distinct projects have reportedly been built on Cosmos

Asset last reviewed: October 16, 2019

Dai
DAI
·
1.00
  • A collateral-backed stablecoin “soft-pegged” 1:1 to the USD through an auto-liquidation mechanism and other features
  • Mainnet launch took place in December 2017
  • As of December 2019, there were reportedly over 70 million DAI in circulation; 5000+ collateral debt positions (or “CDPs”, the smart contract system through which DAI is created) had been opened, and over 200 integrations and partnerships have been inaugurated. In November 2019, over 500 MKR holders had reportedly participated in MakerDAO governance matters
  • The Maker Foundation plays an ongoing role in supporting MakerDAO and the associated MKR and DAI network, supporting a community of Vault owners, DAI users and MKR holders to assist in developing, maintaining and upgrading the Maker Protocol

Asset last reviewed: August 14, 2019

Dash
DASH
·
1.00
  • Designed to function as a payments settlement and value transfer mechanism
  • Utilizes proof-of-work consensus with an additional proof-of-service consensus layer that prevents block reorganizations
  • Initially a fork of Litecoin, Dash later “reforked” off of Bitcoin
  • Dash network uses a 2-tier network: regular nodes and masternodes, the latter of which enable instantly settled payments (InstantSend), instantly immutable  blockchain (ChainLocks), and optional privacy among other features. MasterNodes can be run by coinholders with 1000 DASH per Master Node.
  • As of January 14, 2020, there were reportedly 4700 master nodes and approximately 1200 master node owners, running an average of 4 nodes each, with one node owner running 200 master nodes
  • Dash Core Group has historically led the majority of technology development for Dash
  • The Dash Core Group filed a provisional patent relating to its platform called  Evolution in March 2018, but has reportedly generally open-sourced their code  under the MIT license

Asset last reviewed: October 16, 2019

Decentraland
MANA
·
3.75
  • Designed as a virtual reality platform on the Ethereum blockchain that allows users to  create, experience and monetize unique content and applications in a shared  virtual universe known as a “metaverse”
  • Uses a consensus algorithm similar to proof of work
  • Bronze Age (which created the 3D blockchain world based on a full node implementation of Bitcoin) was launched in March 2017; Iron Age, launched in  beta in December 2017, implements peer-to-peer communication and a scripting  system, enabling interactive content and a system of faster cryptocurrency payments for worldwide transactions
  • Enhancements to add a scripting system to enable customized interactive content, including in-game claiming and trading of LAND, support for third-party applications and in-game micropayment system) and Silicon Age (a full-fledged 3D work, live on the blockchain, with full VR support and customization) are  contemplated in the future
  • Token sale in August 2017 reportedly raised $24M
  • MANA burned when consumed to purchase digital land
  • Decentraland is reported to have had roughly 200-300 daily active users in 2019
  • Decentraland, a private company based in Beijing, is involved in ongoing development of the Decentraland network

Asset last reviewed: September 11, 2019

EOS
EOS
·
3.75
  • The EOS.IO mainnet EOS blockchain is designed as an open-source blockchain protocol designed to provide a platform on which to build, deploy and run high-performing decentralized applications
  • The EOS.IO mainnet EOS token uses the delegated proof of stake consensus algorithm
  • The EOS.IO mainnet EOS blockchain went live in June  2018
  • Sales of the ERC-20 precursor EOS token to the current mainnet EOS token from June 2017 through June 2018 reportedly raised $4B USD. ERC-20 EOS holders later received mainnet EOS tokens on a 1:1 basis
  • According to eosnetworkmonitor.io, there have been approximately 1.8 billion transactions on the mainnet EOS blockchain in 67 million blocks as of December 22, 2019
  • Reportedly fully open-sourced
  • Block.one conducted the initial sale of ERC-20 EOS and continues to develop the EOSIO software
  • In September 2019, Block One consented to an SEC enforcement action regarding the sale of the precursor ERC-20 EOS tokens, which did not affect the current mainnet EOS tokens

Asset last reviewed: August 14, 2019

Ethereum
ETH
·
2.00
  • Designed as an open source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality
  • Uses proof of work consensus
  • Ethereum (in its original form, and what would eventually become Ethereum Classic) mainnet went live in July 2015. Ethereum forked from Ethereum Classic in October 2016
  • Pre-sale took place from July to September 2014
  • The Swiss created Ethereum Foundation assists with development
  • Ethereum is open source

Asset last reviewed: August 21, 2019

Ethereum Classic
ETC
·
2.00
  • Designed to facilitate access to Ethereum Classic, a blockchain and dapp development platform
  • Ethereum forked from Ethereum Classic in October 2016
  • A hardfork of the Ethereum Classic network, Agharta, took place on January 13, 2020
  • Pre-sale took place from July to September 2014
  • Reportedly fully open-sourced
  • ETC Labs, IOHK, and ETC Cooperative play an ongoing role in the development of the system

Asset last reviewed: October 16, 2019

FOAM
FOAM
·
3.75
  • Designed to be used with the Foamspace Platform and facilitate mapping and supply-chain features
  • Uses Dynamic Proof of Location for consensus
  • Mainnet launch took place in September 2018
  • Tokensale occurred in July and August 2018 and reportedly raised $16.5M
  • Completed a $200,000 private token sale in September 2018 to venture and crypto-affiliated investors
  • Reportedly fully open-sourced

Asset last reviewed: August 14, 2019

Hedera Hashgraph
HBAR
·
3.75
  • Designed as a platform that facilitates programming of smart contracts and dApps, as well as file storage and management services
  • Uses a proof of stake validation system
  • Mainnet launched August 2018
  • Private token sale reportedly raised $124 million in mid-2018 from venture and crypto-affiliated investors
  • Reportedly subsequently raised funds via venture funding as well
  • The Hedera Hashgraph Council’s stated purpose is to continue development of decentralization of the platform
  • Applications built on Hedera are open source but the underlying codebase is closed source

Asset last reviewed: August 14, 2019

Horizen
ZEN
·
1.00
  • Designed to function as a cryptocurrency for transactions settlement with enhanced privacy features
  • Uses the Equihash Proof-of-Work (PoW) mining algorithm
  • Formerly known as ZenCash, Horizen is a fork of ZClassic, which itself is a fork of Zcash. Horizen forked from Zclassic in May 2017
  • Horizen(then ZenCash) launched its mainnet in November 2017
  • Secure nodes act as master nodes and require staking 42 ZEN; Super nodes requires taking 500 ZEN, among other storage and computational requirements
  • Reportedly 30,000 nodes, and 20,000 node operators, as of November 6, 2019
  • The Zen Blockchain Foundation plays an ongoing role in the development and adoption of the Horizen network

Asset last reviewed: October 16, 2019

IOTA
IOTA
·
2.00
  • The IOTA network is designed to facilitate transactions settlement, shared computational resourcing (bandwidth, storage, etc.) and data integrity(recordation of transactions in the Tangle). Other features like device integration and data marketplace participation are also available
  • Future contemplated development includes smart contract functionality and increased Internet of Things (or IoT) functionality through a platform called IOTA Qubic, which is still under development
  • IOTA utilizes Proof-of-Work and a directed acyclic graph or “DAG”, also referred to as the “Tangle”, rather than a blockchain
  • IOTA’s mainnet launched in July 2016
  • IOTA raised $434,000 USD during their ICO in November and December 2015
  • IOTA does not charge any transaction fees
  • The IOTA Foundation plays an ongoing role in the development and expansion of the IOTA platform. The IOTA Foundation is also a part of the Tangle EE Working Group, a collaboration between the IOTA Foundation and the Eclipse Foundation, as well as numerous other developers and businesses that contribute to open-source IOTA development
  • Reportedly fully open-sourced

Asset last reviewed: February 21, 2020

Litecoin
LTC
·
1.00
  • Designed as a peer-to-peer Internet currency that enables instant payments to anyone in the world
  • Uses a proof of work consensus system
  • The lightning beta version went live on Litecoin mainnet in August 2017
  • LiteCoin Core has released updates to the system to fix bugs and improve performance. Litecoin released Litecoin Core 0.16.0 in May 2018 and Litecoin Core v0.17.1 in March 2019
  • Token sale in December 2017
  • The Litecoin Foundation works with the core team who develops the Litecoin project and supports them financially
  • Reportedly fully open-sourced

Asset last reviewed: September 11, 2019

Livepeer
LPT
·
3.75
  • Designed to facilitate blockchain-enabled video transcoding and streaming
  • Uses a proof-of-stake mechanism that allows token holders to delegate LPT to transcoders
  • A functioning public alpha of the Livepeer network launched in May 2018
  • Livepeer Inc., a private company, is involved in ongoing development of the Livepeer network
  • Livepeer Inc. raised a reported $8 million in a Series A venture capital round in June 2019
  • Reportedly fully open-sourced
  • Reportedly thousands of users have participated in securing and operating the protocol, over 30 infrastructure operators have run live on the network, and over 100 events have been streamed using Livepeer’s technology 

Asset last reviewed: October 16, 2019

Loom Network
LOOM
·
3.75
  • Designed as a membership token for Loom Network, a platform as a service which allows developers to run large scale decentralized applications
  • Uses proof of stake
  • Developer software developer kit released in June 2018, allowing developers to create dapps and smart contracts through the Loom network
  • A private token sale  took place in January 2018
  • Loom Network plays an ongoing role in the development and adoption of Loom
  • Reportedly fully open-source

Asset last reviewed: October 16, 2019

Maker
MKR
·
3.50
  • In  Multi-Collateral Dai, MKR is a governance token (through MKR voting) and a recapitalization resource (through autonomous surplus auctions or debt auctions,  which may decrease or increase the supply of MKR depending on whether the Maker Protocol has a net surplus or net deficit).
  • Dai 1.0 (a/k/a Single Collateral Dai) a beta version that utilizes Wrapped Ether (WETH) as the collateral for CDPs, launched on December 18, 2017. Multi-Collateral DAI (MCD) launched on November 19, 2019.
  • In Single Collateral Dai, one uses MKR to pay stability fees, which collect in a  smart contract. Anyone can call that contract and destroy the MKR.
  • In Multi-Collateral Dai, MKR can only be destroyed through autonomous auctions triggered by outside parties called keepers.
  • While DAI acts as the stablecoin created by users who provide their assets as collateral (which is then held in a smart contract without the need for any trusted third party such as a custodian), MKR is used for two purposes (1)  governance of the Maker platform, and (2) as a recapitalization resource
  • In both Single Collateral Dai and Multi-Collateral Dai, the Stability Fee is a fee paid by every CDP (Single Collateral Dai) and Vault (Multi-Collateral Dai). It is  an annual percentage yield that is calculated on top of the CDP. In Single Collateral Dai, the Stability Fee is denominated in Dai, and paid in MKR. In Multi-Collateral Dai, the Stability Fee is denominated in Dai, and paid in Dai.
  • In both Single Collateral Dai and Multi-Collateral Dai, the Stability Fee is determined by MKR governance.
  • Sold privately to venture and crypto-affiliated investors
  • The Maker Foundation plays an ongoing role in supporting MakerDAO and the associated MKR and DAI network and community of owners, users and holders supporting the Maker Protocol.
  • Reportedly fully open-sourced, and the Maker Foundation irrevocably assigned trademarks it had previously held for defensive purposes to a Danish, non-profit  organization called the DAI Foundation (which is independent of the Maker Foundation)

Asset last reviewed: February 21, 2020

Monero
XMR
·
1.00
  • Designed as a privacy coin that is purportedly untraceable, unlinkable, private, and has analysis resistant transactions
  • Uses proof of work consensus with the Cryptonight algorithm
  • Monero, an Australia-based private company, is reported to have engaged in one funding round in 2015 involving private investors, but the nature of the investment unclear
  • Reportedly fully open-sourced

Asset last reviewed: September 11, 2019

Numeraire
NMR
·
2.00
  • Designed as a as a marketplace for data for use by the Numerai hedge fund to make investments
  • Uses proof of existence with the current Erasure platform launched in August 2019
  • Raised $1.5 million in equity seed funding and Series A equity round in2016
  • Scientists stake tokens based on how successful they think their models will be when implemented in real-world markets with NMR. NMR staked on losing models are burned
  • Though core parts of Numerai are open sourced, Numerai retains its IP according to its Terms of Use

Asset last reviewed: August 14, 2019

Polymath
POLY
·
3.50
  • Designed asa suite of open source smart contracts and tools to create, configure and manage security tokens on Ethereum.
  • Raised $58.7 million in a private placement to accredited investors that closed in January 2018.
  • In January 2018, the Polymath smart contracts went live. On August 21, 2018, thePolymath dApp, allowing for point-and-click access to the Polymath smart contracts, was made available on the Ethereum mainnet.
  • Polymath reports that at least 305 tickers have been reserved (i.e. token name has been set aside) and 153 tokens have been created through the POLY network.
  • In May 2019, Polymath announced a collaboration to create Polymesh, a purpose-built security token blockchain
  • Polymath has indicated that it will allow existing POLY holders to upgrade on a 1:1 basis for Polymesh-based POLY, or retain their existing POLY tokens which will remain functional
  • Reportedly fully open-sourced

Asset last reviewed: February 21, 2020

Stellar
XLM
·
3.75
  • Designed as an open-source, distributed payment network that uses the Stellar Consensus Protocol
  • Lumens (XLM) are the native asset of the Stellar network. XLM are used to pay transaction fees, which enhance security against denial of service attacks. Due to this functionality, the network requires a minimum XLM account balance
  • Uses a federated byzantine agreement system
  • Mainnet launched in September 2015 (while the original version of the network launched in 2014, the current protocol launched on September 30, 2015)
  • Stellar Development Foundation plays an ongoing development role
  • Reportedly fully open-sourced
  • As of December 23, 2019, Stellar had over 66,000 reported daily active accounts

Asset last reviewed: August 14, 2019

Tezos
XTZ
·
3.75
  • Designed as a platform that facilitates programming of smart contracts and dApps
  • Tezos offers decentralized, on-chain governance features
  • Utilizes a delegated proof of stake system
  • The mainnet version of the Tezos platform launched in September 2018
  • Token sale in July 2017 and raised $232 million dollars
  • Raised money for equity investment in 2016
  • The Tezos Gitlab page has roughly 100 contributors that have collectively made over 6,000commits to the open source code
  • The Tezos Foundation plays an ongoing role in the development and adoption of Tezos

Asset last reviewed: August 14, 2019

USD Coin
USDC
·
1.00
  • Designed as a stable-coin redeemable on a 1:1 basis for fiat currency (USD); USDC is not collateralized by a basket of other digital assets or determined algorithmically
  • USDC is an ERC20 token which is created when users deposit fiat currency in exchange for a corresponding amount of USDC, which are later destroyed when redeemed for fiat
  • The USDC token launched on October 23, 2018
  • Circle raised a total of $246 million through venture finance
  • Circle charges fees for certain USDC transactions, but only for “outbound” USDC transfers (sending USDC from a USDC account to an external USDC address) to cover Ethereum gas costs, and for rejected bank wires from prospective USDC purchasers.
  • Coinbase charges fees for purchasing USDC with a credit card or debit card
  • Coinbase and Circle play an ongoing role in supporting the USDC system
  • Reportedly fully open-sourced

Asset last reviewed: February 21, 2020

XRP
XRP
·
4.00
  • Designed as a payments, liquidity sourcing and transactions settlement mechanism
  • XRP Ledger uses a federated byzantine agreement consensus protocol based on supermajority vote of validating nodes (rather than proof of work or proof of stake)
  • Ripple Labs is involved in the ongoing development of applications for XRP
  • Ripple Labs conducted  a Series A funding in 2015 and subsequent equity raises
  • Tokens were reportedly sold privately to venture and crypto-affiliated investors
  • XRP was initially released in 2012
  • On-Demand Liquidity (previously xRapid), which provides a liquidity option built for enterprise use to service cross-border payment using XRP, was made commercially available in October 2018
  • Over 300 financial institutions are reported to currently utilize RippleNet (previously xVia and xCurrent), the XRP global payments network, in over 40 countries
  • Ripple is reported to be fully open-sourced

Asset last reviewed: August 14, 2019

Zcash
ZEC
·
2.00
  • Designed to facilitate blockchain-based anonymous transactions
  • Uses a proof of work algorithm
  • The Zcash block launched October 2016. Zcash 2.0 launched August 2018
  • In addition to Zcash Company, Zcash Foundation is a non-profit entity focused on financial privacy which serves the users of the Zcash protocol and blockchain, and promotes the Zcash community  
  • Reportedly fully open-sourced

Asset last reviewed: August 14, 2019

How to read the score:

1. A score of 1 means the Council’s analysis found that an asset has few or no characteristics consistent with treatment as a security.

2. A score of 5 means the Council’s analysis found that an asset has many characteristics strongly consistent with treatment as a security.

3. Scores in between reflect the relative strength and presence of characteristics relevant to the Council’s framework. Because the Howey test requires all 4 prongs to be met, any non-5 score may have a material basis to not be deemed a security.

4. The following are all possible scores from the framework: 1, 2, 3, 3.5, 3.75, 4, 4.25, 4.5, 4.75, 5. There is enhanced gradation between scores of 3.5-5 to address finer aspects of risk.

The scores reflect an independent analysis by the Crypto Rating Council, LLC and is intended as a tool to help members evaluate and weigh factors that may be relevant to the potential classification of a digital asset under federal securities laws. The score does not reflect a legal conclusion and is no indication of qualitative value of an asset or suitability for investment or any other purpose and is solely for use by the CRC and not for reliance by any other party.

The CRC’s analytical framework is based on relevant federal law, including the Howey test, and statements from SEC Staff relating to digital assets, including the SEC’s “Framework for Investment Contract of Digital Assets.” Neither the scores nor our framework constitute an exhaustive treatment of the legal and regulatory issues relevant to conducting an analysis of whether a product is a security and the CRC does not analyze state securities laws which may apply. Classification of a digital asset as a security is a fact and circumstances determination and no one factor is necessarily dispositive as to whether an asset would be deemed a security. A quantitative ranking may not necessarily be reflective of the likelihood of classification as a security, and only should be considered together with all relevant facts and circumstances. Moreover, the analysis concerning digital assets as securities may evolve over time the nature of digital assets, applicable precedent and SEC statements and interpretations change and evolve. The CRC’s framework (including the factors considered and the weighting of those factors) has not been endorsed by the SEC or any other government authority.

The analysis underpinning each score published here is based on a limited review of factual information publicly available or otherwise made available to the CRC. Due to the quantity of information (including white papers, web pages, social media posts, videos, seminars, conferences, marketing materials and other forms of communication) and limitation of their availability, not all potentially relevant factual information has necessarily been reviewed and no independent investigation or analysis, apart from the CRC’s own efforts, has been taken to confirm information on which this analysis is based. We do not assume any responsibility for the completeness of the information upon which our analysis and score is based. It is possible that if additional facts where known or assumed or understood facts prove to be incorrect, the analysis and resulting score would be materially different.