Gain valuable insights into the digital asset market and risk management strategies with Agio Ratings.
Discover why the quantification of credit risk is becoming a necessary tool in crypto risk management and see how Agio Ratings’ Risk Simulator measures the overall credit risk of having exposures on multiple centralized exchanges.
Another Quarter and another Crypto-crisis. This time FTX halted withdrawals and has filed for bankruptcy as a results of what we’ve coined a “Denial of Credibility” attack. And the next question is, who will be left bearing the resultant losses?
Coingecko and Kaiko (plus others) have developed exchange ratings, originally branded as Trust Scores, to help investors choose where to trade. But, without doubting their good intent, these scores are essentially made up.
In 1936 Keynes described how irrational emotions influence market pricing: “…our decisions to do something…can only be taken as a result of animal spirits…not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities”.
Agio Ratings co-founder, Henry Stott, was recognised in The Times newspaper for his pioneering work in football analytics. Agio is on a mission to develop a predictive edge in risk decision-making for digital assets.
In line with this quote from Chi Chi Rodríguez, the professional golfer, it’s the received wisdom that crypto-trading volumes are grossly inflated. But to what extent?
There can be no doubt that this has been a pivotal year for digital assets. Valuations have dropped dramatically. Investors have lost money. But the ecosystem has survived relatively intact and outflows have started to reverse. However 2022 has also been a transitional year for another important reason.
It’s generally agreed that location is an important consideration in counterparty risk. If you are registered and regulated in North America, you are seen as safer than someone based in Palau. But how do you convert this intuition into a number that can be used for managing risk exposure? It’s not as easy as it may sound.
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