Huobi Devises New Analysis Model

Cryptocurrency exchange Huobi has issued a quantitative analysis model to evaluate different digital currencies.

The Beijing-based Huobi calls the project SMARTChain and designed it with help from academics. The goal is to guide investors toward a more scientific way to evaluate each platform. The project is in beta and will be updated monthly and quarterly to focus on the highest market capitalizations of the moment.

China’s Tsinghua University used its School of Finance to design the evaluation model. They came up with five variables for the analysis: a blockchain’s relevance for real-life applications; its public and media attention; its trading volume; its credibility and risk for inflation; and its technological design.

Using that criteria, the Huobi Blockchain Research Center will assigns a score to each blockchain in order to generate a final ranking.

Litecoin, bitcoin, and ethereum ranked in the top three in an initial analysis, with Ripple and ethereum classic in fourth and fifth, respectively.