EF Hutton, whose affiliate Megga Inc. previously launched its own cryptographic token MeggaCoin last year, said in a press release it wants to assist “confused” investors who are keen on gaining a better understanding of the space.
“A great many investors are confused by the rapid developments in this new asset class,” CEO Christopher Daniels commented, adding that the move represented “the first of many initiatives” involving cryptocurrency the firm would be taking.
EF Hutton researchers will undertake a review of some of the largest cryptocurrencies by market cap, specifically Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), EOS (EOS), Litecoin (LTC), Bitcoin Cash (BCH) and Cardano (ADA), awarding each a one to five-star rating.
“The ratings scale is one star to five stars with five-stars representing a positive outlook and one-star representing a negative outlook,” the release explains.
Coverage of businesses will also use the same scale, EF Hutton announcing its first subjects as HIVE Blockchain Technologies and Canadian mining startup Hut 8.
Hut 8 is currently the world’s largest publicly-traded mining operator, executives claimed in July after the opening of its giant second mining facility in Medicine Hat.
While EF Hutton did not explain the reasons behind its selections, the ratings echo efforts from agencies such as Weiss earlier this year, the results of which quickly gained notoriety in cryptocurrency circles.