We are excited to announce that we have just published our detailed ESG ratings for tokens, in addition to our previously rated blockchains such as Bitcoin, Ethereum, and others. This is a significant step for us as we believe it will provide valuable insights for investors looking to enter the crypto market.
Our rating process resulted in two ESG rating frameworks, one for blockchains and one for tokens. The reason for this distinction is that a blockchain needs to be assessed differently in terms of environmental, social, and governance (ESG) factors than tokens, which are projects built on top of blockchains.
When it comes to rating tokens, we look at the underlying blockchains and their ESG ratings in each of the three dimensions, while also examining the project's purpose, team, and governance structures.
We have been rating tokens for quite some time and now we're making more detailed assessments public for everyone. Key metrics include information on estimated electricity consumption per year, amount of annual e-waste, tons of CO2 per year, organization type, and average daily transactions, among others. We have also briefly summarized our key findings per ESG dimension to help you DYOR (do your own research).
Our reasons for disclosing the detailed ratings
This way you can easily find out which tokens have received the best ratings and which ones contain a significant number of red flags. However, since there are so many tokens, we may not have rated your favorite token yet.
We believe that our ESG ratings for tokens will provide investors with valuable insights into the environmental and social impact of token projects, as well as the governance structures in place. It's important to consider these factors before making investment decisions in the crypto market. We are convinced our ratings will aid you in making more informed decisions and help you better navigate the crypto sphere.
So, what are you waiting for? Check out your favorite tokens and learn more about the key metrics we assess. We look forward to continuing to provide meaningful insights into the ESG impact of blockchain and token projects.
Our rating approach
Overall, we source up to 110 data points per coin to feed our quantitative estimation models. We also apply qualitative expert judgment to ensure that soft factors such as visions, roadmaps, or conflicts of interest are taken into account and included in the rating.
Our rating system is relative, i.e. we evaluate the sustainability of each coin or token in direct comparison to its peers. In other words, we ask ourselves which cryptocurrency is more sustainable considering a similar market cap and transaction volume. This is to ensure that those with higher transaction volumes and associated higher CO2 emissions are not automatically penalized.
Learn more about our methodology.