The South Korean government wants to make investment in blockchain projects transparent and a new organization, Korea Blockchain Ratings Inc. (KBR) launched at the end of September to do so.
KBR was founded in July as a specialized blockchain project evaluation organization that offers comprehensive analyses of blockchain projects and benchmarks them according to their technical and commercial feasibility and started operations on September 25.
In order to create a subjective analytical point of view that can provide an un-biased perspective on blockchain projects from multiple perspectives, KBR has formed an advisory committee of blockchain project planners and security experts and brought in credit rating experts from Nice Credit Information Service, one of the largest credit rating agencies in Korea.
KBR will issue multi-tier ratings that are based upon the following:
1. Technical ratings – will evaluate technology and issue ratings from T1 (highest level of technology) to T10 (lowest level of technology)
2. Business ratings – will evaluate business models, performance metrics and analyize the competitor landscape and issue ratings from B1 to B10, with B1 representing “the highest level of business performance and competitive advantage.”
3. Final Project Ratings – combines the technical and business ratings and provides a final rating that range from AAA (highest potential) to D (lowest potential)
In order to evaluate a project, KBR will study the projects white paper, team profile, technical information, financial statements, three-year performance, and shareholder structure, as well as industry specific factors that may affect its ratings.
KBR announced in a press release that it has issued its first rating of BB — comprising a B4 business rating and T5 technology rating — to Charzin, a blockchain solutions provider for the electric vehicle charging market.
In the future, KBR plans to expand the evaluation business to all industries where blockchain technology is being implemented, such as education, energy and fintech.