The “Technology” category assesses the technical robustness and security of a digital asset and its underlying asset It evaluates the thoroughness of smart contract audits and the ongoing security measures. The category furthermore examines token functionalities, such as invalidation and transfer permissions, and its technical and legal linkage to the underlying asset. We also assess the token’s adherence to recognized standards, look into the custody solutions provided and ensure that the project has strong disaster recovery and business continuity plans. This assessment ensures that the digital assets are built on a secure and technically sound foundation, offering reliability to stakeholders.

The “Compliance” category assesses the legal and regulatory integrity of the digital assets and their issuers. It examines the issuer’s legal foundation, jurisdiction, and strategic collaborations. Key legal documents and token holder rights are scrutinized for clarity. The system ensures the issuer has necessary regulatory licenses, maintains transparency, and follows stringent KYC/AML processes. Our rating framework provides a secure and transparent investment landscape, confirming that the digital asset aligns with established legal standards.

The “Economics” category evaluates the financial structure and economic design of a digital asset and its underlying. It examines the token distribution and scrutinizes the token’s design, its role within the project, and any mechanisms that influence its value. We assess the project’s long-term viability, revenue strategies, and the token’s redeemability. Additionally, the category looks at market dynamics, including market capitalization, liquidity, and measures to stabilize token price. We also scrutinize company financing methods and any token restrictions, ensuring a robust and sustainable economic model for investors.

The “Environmental Impact” category assesses the ecological footprint of a digital asset and its associated underlying. It checks for third-party verification, governance clarity, and risk management strategies. The category also evaluates project monitoring, reporting frequency, and long-term resilience. Emphasis is placed on the project’s scalability and its broader environmental and social benefits. Additionally, we quantify the blockchain’s carbon emissions and power consumption to assess carbon neutrality, ensuring digital assets promote environmental sustainability.