FCAS - Metric to assess the fundamental health of crypto projects

[Julian ogan]

Coinmarketcap has introduced a new feature for Rating the Cryptocurrencies. It gives the fundamental analysis of crypto projects. Ratings are calculated by the third-party organization - Flipside Crypto.


How to Check Ratings of a Coin on Coinmarketcap?

Go to CoinMarketcap, choose a coin for which you want to check the rating. Select the "Ratings" tab as shown in the figure -

FCAS: Fundamental Crypto Asset Score

WHAT IS FCAS?

FCAS is a comparative metric used to assess the fundamental health of crypto projects. The score is derived from the interactivity between primary project lifecycle fundamentals: User Activity, Developer Behavior, and Market Maturity.


FCAS RATINGS

FCAS ratings are based on a 0-1000 point scale with a corresponding letter grade. Breakpoints are based on standard deviations in the underlying component distributions.



The number rating is derived from a combination of classical statistics with Bayesian approaches to provide a simple score for each metric.


For example, the FCAS Score of Ethereum is 927 and Grade of Ethereum is Superb - "S". Check below how the ranking of Ethereum is given -




--> You can check all the FCAS Rankings from here - https://app.flipsidecrypto.com/fcas-scores


FCAS COMPONENTS DESCRIBED


FCAS is derived from the interactivity between three project lifecycle fundamentals: User Activity, Developer Behaviour, and Market Maturity.




USER ACTIVITY

User Activity is an aggregate measurement of all customer behaviour for a specific project, comprised of Network Activity and Project Utilisation factors.

• Project Utilisation is calculated based on the activity of user-operated wallets (primarily smart contract calls and transfers where relevant) engaging in the intended use-case of a given project.

• Network Activity is based on wallet address classifications, focusing on the actions of wallets operated by stakers, miners, users, and investors.

>> User Activity has a high impact on a project’s overall FCAS.


DEVELOPER BEHAVIOR

Developer Behavior is an indicator of how active and efficient a development community is on a specific blockchain or project. We track 30 variables, which are then bucketed into the three factors: Code Changes, Code Improvements, and Community Involvement.

The data is obtained by ingesting and evaluating events that occur in public and private developer code repositories like GitHub and Gitlab.


>> Developer Behavior has a high impact on a project’s overall FCAS.


MARKET MATURITY

Market Maturity, derived from Risk and Liquidity factors, represents the likelihood a crypto asset will provide consistent returns across various market scenarios by combining multiple assessments of market Risk (specifically, exchange liquidity, price projections, price cliff potential, algorithmic prediction consistency, and price volatility).


>> Market Maturity has less than 5% impact on a project’s overall FCAS.

Check here for FAQs related to FCAS - FCAS FAQs
Source: Check here to know more about FCAS ratings - https://www.flipsidecrypto.com/fcas-explained

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[o_e_l_e_o]

You can check all the FCAS Rankings from here - https://app.flipsidecrypto.com/fcas-scores

These ratings are trash.

EOS is number 3!? Don't make me laugh. EOS is the opposite of a good cryptocurrency. There are 21 "block producers" who hold complete control over the EOS blockchain. They can freeze your addresses, reverse your transactions, even seize your coins, and there is nothing you can do about it. They print thousands of EOS out of thin air to "reward" themselves around ~$10,000 each per day for the privilege of having complete control over your coins. It is centralized, inflationary, worse-than-fiat, trash. Rating it higher than bitcoin suggests whoever decided on these ratings has a very limited understanding of crypto in general.

Cardano is number 4. Does Cardano even have a working product yet? It's vaporware.

TRON, the plagiarized scamfest led by a money laundering liar, built upon fake announcements and with no use case, is in the top 10. The same statement could pretty much be made about BCH.

Honestly, if they put Nano in the top 10 as well, this would pretty much be ordered by "what is shilled the hardest on reddit". It's almost like when Coinbase listed a bunch of trash altcoins, and it turned out the person behind the move was holding massive bags of said coins. I'll be firmly ignoring these "ratings".

[Lucius]

I just check that new option, and since OP is posted FCAS Score of Ethereum I was wondering what the result would be for Bitcoin. It's interesting that ETH has better result then Bitcoin in rank which is Superb and score which is 927 (from max 1000). On the other side let's look what same metric is saying about Bitcoin :



From these results it turns out that ETH, DAI, EOS and Cardano are better projects then Bitcoin, which in my opinion just doesn't make sense, and things like this are not something that can be calculated and shown in numbers.

[tranthidung]

All kinds of ratings that given by third-parties are unreliable, and biased ones. Projects, developers pay fees for their coins/ tokens to be listed and get ranks that they want. It is hard to pay money and ask for the 1st position for total shitcoin, but sure financial side-effects can play as serious bias factor on ranking system of those platforms.

Instead of relying on those rating platforms, and use their statistics for your investment decisions, you should do it yourself. Because this is one of the most convenient crypto brings to human society, and investors. With crypto projects, investors can investigate with available things, and most of time, they can get fundamental things for their investigation. I don't say that everyone can do that, because it requires experience, that can only obtain from time and willingness to learn.

Relying on those rating sites will reduce or destroy people intention to keep learning and improving their knowledge and experience. Then, sooner or later, they will be killed by those ratings.

From these results it turns out that ETH, DAI, EOS and Cardano are better projects then Bitcoin, which in my opinion just doesn't make sense, and things like this are not something that can be calculated and shown in numbers.

That site give nearly same scores for Bitcoin and Bitcoin Cash, at 890 and 851, respectively. Can I believe it?

https://app.flipsidecrypto.com/fcas-scores

[Julian ogan]

@o_e_l_e_o, @Lucius and @tranthidung - Thanks for sharing your inputs on this.

I agree and even I couldn't believe how Bitcoin and other projects have less rating than Ethereum. There may be some factors based on which they calculate this rating. As Coinmarketcap, the biggest Cryptocurrency Ranking platform has included FCAS, this may be good Rating and I could believe on this. This may not be useful for the investors who are in the crypto for long time as they know many other techniques to choose the best crypto to invest. I believe this would help the beginners to check the ratings of the project and choose the best crypto to invest in.

Flipside Crypto considers many aspects while calculating the ratings. It collects the raw blockchain data across different projects and parses it internally. Once they analyze and recreate the raw data, they will combine them with market data gathered from various sources. You can read more about it here -https://www.flipsidecrypto.com/fcas-faq

I am not differentiating which is good and which is bad Rating project. I came across this on Coinmarketcap and felt that it's a good rating system which will help us to know the good project for investments.


--> I would request the community members to share the other Rating System/Platforms which they believe are good. This would help us to know which is better and we can use that as our investment decisions.