Rating Methodology

Purpose and significance of APYWA digital asset ratings

In traditional financial markets, a system that comprehensively evaluates financial stability, technical capability and market risk has helped investors make decisions and kept markets transparent by analysing the reliability and risk of assets. The global digital asset market, by contrast, has grown rapidly without a clearly established rating and analysis framework, which has increased information asymmetry and investment risk.

APYWA introduces a systematic and reliable rating for digital assets to address this. APYWA’s rating comprehensively analyses an asset’s market access, development activity, market liquidity, community activity, risk and security, technical capability, project expertise and financial soundness. In doing so, we aim to help investors make rational decisions based on clear information and to contribute to the transparency and stability of the digital asset market.

Digital asset rating model

APYWA’s rating model consists of two approaches, the automated rating and the in-depth rating. Each examines different aspects of a digital asset in depth through quantitative and qualitative analysis.

Automated rating

The automated rating evaluates the key indicators of a digital asset quickly and accurately through algorithms designed by APYWA on a large data foundation. It considers the main quantitative factors: market access, development activity, market liquidity, community activity, and risk and security.

In-depth rating

The in-depth rating provides detailed results through in-depth analysis by digital asset rating experts, based on the data extracted by the automated rating together with information held internally by the foundation that is not publicly disclosed. It analyses the project’s credit risk and business value in depth, considering both quantitative and qualitative factors.

Project profile and expertise

Comprehensively evaluates the backgrounds and roles of team members, related partnerships and advisor groups, and publicly available basic project information.

Technology and development activity

Analyses development progress against the roadmap and technical differentiation, and evaluates the originality and efficiency of the project’s solution in comparison with existing blockchain technologies.

Financial soundness and tokenomics

Evaluates the asset’s credibility through its funding methods, financial structure, tokenomics and the transparency of circulating-supply information.

Business strategy and community operations

Comprehensively evaluates community activation and user-acquisition strategies, community size and user engagement.

Risk and security

Comprehensively analyses security-audit results, the ability to respond to security incidents, and legal risk.

Scope of the automated rating

Within this methodology, the automated rating covers digital assets listed on exchanges that support the Korean won (Upbit, Bithumb, Coinone, DigitalX and Gopax). New assets not yet listed on won-supporting exchanges may also be included depending on major narratives in the global market.

Definition of digital asset rating grades

A composite score is calculated by weighting every rating factor. Scores are quantified from 0 to 100 and classified into 12 grades from A+ to NR (not rated). Note that the automated rating and the in-depth rating apply different rating mechanisms and weights.

Rating cycle and update method

Digital asset ratings consist of regular ratings and ad-hoc ratings. Regular ratings are updated systematically every week on a fixed schedule. In addition, when an event that may significantly affect the market occurs — a major project update, a technical change, a delisting or a security issue — an ad-hoc rating is carried out promptly to reflect it. This cycle allows the many factors of digital assets that are sensitive to market volatility to be monitored continuously, keeping the rating timely and accurate.

※ The regular rating cycle may change depending on digital asset market conditions.

Disclaimer

The automated rating provided by APYWA is performed by an automated system based on publicly available data and is a purely data-driven result with no subjective element involved. The automated rating covers five main factors of a project — market access, development activity, market liquidity, community activity, and risk and security — and all information provided is for reference only. Our rating is not intended as investment solicitation or advice, and we make no warranty as to the accuracy, completeness or timeliness of the information. Users must make their own investment decisions based on the data provided, and the Company bears no legal responsibility for any loss or damage arising from them. Although the rating material is processed automatically from reliable data, differences from actual market conditions may arise due to data limitations. Accordingly, the Company is not liable for any damage arising from the use of the information provided, and all information contained herein is the property of the Company and may not be reproduced, distributed or modified without prior approval.