According to Cointelegraph: Ben Goertzel, CEO of decentralized AI firm SingularityNET, advocates for the role of crypto rating agencies in enhancing trust and reducing risk within the volatile crypto industry. Following industry upsets like the Terra, FTX, and Celsius collapses in 2022, Goertzel argues that crowdsourced, transparent, and strategically aggregated crypto ratings bring more benefit to the sector than regulatory efforts.
According to Goertzel, advances in AI technology now make it possible to generate tailored summaries of the reputation of various entities in the crypto space using raw data and reports from numerous sources. In his view, the handling of the FTX case by U.S. regulators demonstrated that no special laws are needed for crypto fraud. Existing laws can effectively address "crypto fraudsters" as they would any other facilitators of fraud.
Although Goertzel acknowledges that rating agencies may not have prevented the FTX incident, he believes they could have alerted customers to the many warning signs evident beforehand. Anastasia Ulianova, co-founder of crypto ratings platform Aria, concurs with Goertzel and emphasizes the role of rating agencies in signalling high-risk situations within the crypto ecosystem. However, she cautions that ratings can only identify the level of risk and cannot predict impending collapses.
Ulianova asserts that rating agencies are beneficial beyond merely assessing the risks and legitimacy of projects. They also enable investors to measure the risk-to-reward ratio of tokens, thus helping them understand whether potential returns merit the involved risks. She emphasizes Aria’s ambition as a rating agency to "legitimize the place of crypto assets in a traditional investment portfolio."