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Chinese Government Launches a Monthly Crypto Ranking Initiative

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In surprise move, the China Center for Information Industry Development (CCID), which serves as the research wing under the country’s industrialization ministry, has announced the launch of a monthly ratings index for 28 cryptocoins and the blockchains behind them.

The CCID said that the index is based on three major aspects; technology, its application and innovation. However, the institution didn’t give the details of the methodology being used in the ranking exercise.

During the first release, Ethereum was ranked first with the most famous crypto in the world, Bitcoin, coming at number 13 while Nem was ranked last; 28th.

The research body announced its plans on the initiative last week saying that the move was informed by the lack of independent analysis of cryptocurrencies and blockchain to guide government bodies, entities and other research institutes in the country and around the world.

The entity becomes the first government body to offer crypto ratings and rankings. However, there are other firms like Weis from the US that provide crypto ratings and rankings – but theirs are more focused on crypto trading. The government agency says that it aims to provide an alternative source of ratings and rankings which can be used for aspects other than trading.

Ban on Crypto Trading

In the past, China has been rather hostile to crypto followers due to uncertainty and instability associated with crypto trading. However, they have now offered their support to blockchain technology in different areas.

In September last year, the Chinese government announced a ban on local Initial Coin Offerings (ICOs) as well as local cryptocurrency trading. Similarly, they have been conducting a widespread crackdown on crypto mining in the country; a move that has led to many blockchain and crypto based firms moving to more blockchain /crypto-friendly countries.

Despite the ban on trading and ICOs, Chinese multinationals have continued in their pursuits of blockchain tech, exploring ways they can use it to enhance their business operations. For instance, Alibaba is supporting numerous blockchain startups that can help the company improve its efficiency.

Following the announcement of the ranking initiative, several blockchain and crypto enthusiasts have openly criticized the move, urging people to conduct their own research into crypto rankings. Eric Zhao, a renowned figure in the crypto and blockchain industry in the country, has said that he can’t take the government’s ratings seriously, questioning the expertise of the individuals performing the task.

Zhao said,

Most old-school experts haven’t followed the crypto space long enough to grasp some of the traits of [the] tech and community that can’t be found elsewhere,

Image Credit: Deposit Photos

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