Rating Scale

Understanding the Xerberus Grading System for Risk Ratings

Rating Scale:

  • AAA - Investment Grade with more stable prices

  • AA - Investment Grade

  • A - Investment Grade with high volatility

The investment grade class is the most consistent token class in their ecosystem. Being consistent tokens means you can expect fewer surprises both to the upside and downside. Investment grade tokens can be excellent plays at the beginning of a bull run because they are usually poised to be the primary beneficiaries of new users coming into an ecosystem due to their established nature in the ecosystem.

  • BBB - Speculative with more stable prices

  • BB - Speculative

  • B - Speculative with high volatility

The speculative class has more potential to both the upside and the downside than the investment grade class. Buying B-class tokens as they evolve into investment-grade A-class tokens can be an outstanding trade. Speculative tokens often feature a good risk/return profile by containing less adopted projects with more space to grow. However, if an established token that used to be an A-Class token keeps moving backward, regressing into a B-Class token, this can be a significant warning that this token will decrease further.

  • CCC - Very Speculative, with "more stable" prices

  • CC - Very Speculative

  • C - Very Speculative with high volatility

The very speculative category is the question mark class. Most tokens ever minted will never exceed a C rating. Therefore, this sector contains the highest concentration of risk. However, it can be an excellent idea to screen the C-class for promising tokens and watch them rise through the ranks into an ecosystem-dominating project.

  • D - Junk

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