CRC’s evaluation could be the breakthrough for IOTA

Even if there is less news from IOTA after the hack of the Trinity Wallet, its placement at Coinmarketcap is still impressive. The German showcase project is ranked 24th and, thus, among the top 25 coins worldwide. But why only ranked 24th? Overall, IOTA is altogether very ambitious and innovative.

Moreover, it seems as if the project has grown out of its infancy in the last few months. One reason could be too few listings on crypto exchanges, which means that fewer people even get the chance to invest in IOTA. A new rating by the Crypto Rating Council (CRC) could now be the breakthrough for IOTA.

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CRC to help Exchanges with listing

An important question when it comes to whether a coin is listed and offered for trading on a crypto exchange, especially in the USA, is whether the coin is a security or not. Because, if it is traded and subsequently classified as a security by the SEC, there is the threat of legal proceedings, such as those of the company Ripple.

In order to clarify this issue for crypto exchanges and companies before a possible listing, the Crypto Rating Council (CRC) was established in September 2019. Members of the CRC include well-known exchanges such as Coinbase, Kraken or Bittrex. Although the CRC’s assessments are not legally binding, they are intended to provide the crypto exchanges with a basis for rating considerations.

IOTA is probably not a security

IOTA has now also been assessed by the CRC and received a value of 2.00. The Council, therefore, considers it unlikely that IOTA will be classified as a security by regulatory authorities such as the SEC. The rating range of the CRC is between 1.00 and 5.00, which places IOTA at the lower end of the rating scale.

In a blog post, IOTA developers commented on the rating. They are obviously hoping for more credibility from the crypto stock exchanges in the USA: “With our Crypto Ratings Council Rating we believe that the US market and the CRC partner organizations will feel more comfortable and confident when dealing with the IOTA token and protocol.”

The crypto stock exchange Bittrex has already used the rating of the CRC to list IOTA and release it for trading. The exchange announced this via a Twitter post.

Possible effects on the IOTA course

Both the IOTA Foundation and IOTA fans are now hoping for more attention from the crypto community, especially from investors. As the above example from Bittrex showed, these are not just empty hopes, but could quickly become reality. This would also be accompanied by a long-term rise in the IOTA share price. But why is this so?

First of all, more listings on crypto stock exchanges ensure that potentially more investors and traders have access to trading with IOTA. In theory, this should, at least to some extent, increase the demand for IOTA. If the demand increases due to more listings and more investors who want to invest in the project, the price would have to increase in the long run, according to the textbook.

Whether this will actually happen, of course, remains to be seen. Nevertheless, the evaluation of the CRC and the advance of Bittrex is a very positive sign for IOTA.

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(Featured image by Tim Reckmann via Flickr)

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