Insights: AI crypto ratings vs The bear market

As crypto adoption begins its journey towards one billion users, lessons from the traditional financial sector have inspired the development of a new decentralised approach to financial ratings that embraces the predictive power of artificial intelligence (AI) and machine learning (ML).

Based at the DMCC crypto centre in Dubai, Evai has embraced the bear market and used it as a proving ground for a crypto ratings model that combines world leading academic and economic research with industry-leading technology. The outcome is a platform that is built to tackle the toughest market conditions that will help users build crypto portfolios, minimise risk and inform profit making trading decisions.

In the investment world, information is power and the Evai Ratings model has passed the empirical test, identifying value in the bear market which has seen the price of Bitcoin (BTC) fall from $69,000 to below $20,000 for the first time since December 2020.

Like a bear with a sore head, the crypto market has been suffering a hangover from recent announcements coming out of the US which have been compounded by the high-profile headaches caused by $LUNA and Celsius Network. Traders have been left searching for ways to navigate the economic headwinds, but more on that shortly.

The Fed’s decision to raise interest rates stems from the high inflation figures plaguing the US and other countries around the globe. Reports coming out of the US reflect a rise of 8.6 per cent in the Consumer Price Index. With the 1 per cent increase since April, the annual rate of inflation is now running at the highest level since December 1981 prompting a sharp reaction from the FED implementing a third 75 basis point increase in a row.

Economic stagflation?
The causes may vary but in general, market turmoil, such as the dot com bubble in 2000, the global meltdown in 2008 and Covid-19, bring policy responses to restore equilibrium and maintain stable growth and inflation. However, we need to go back many years to witness the economic landscape we find ourselves facing in 2022. The specter of stagflation is upon us, and policy makers will need to walk a tightrope to avoid catastrophe. What a conundrum the market now faces, while inflation will come down sooner than expected and the US Federal Reserve will eventually reverse their decisions and bring interest rates back down, the damage to long term growth will already have been inflicted.

The crystal ball of crypto
During an unprecedented year for crypto and the global economy, Evai Crypto Ratings have proven their ability to outperform the market on a risk adjusted basis. Traders now have a system at their disposal which embraces the latest cutting-edge technology, employing AI, coupled with ML to provide unbiased crypto ratings. Every crypto asset rated by our technology undergoes a rigorous evaluation that scrutinises the asset’s current data against six power factors and over 20 KPIs, before awarding an unbiased rating. Given the number of crypto assets out there, over 20,000 at last count, an unbiased and automated system is an absolute necessity.

Over the past three years, Evai has pioneered data management techniques that have only recently been made possible due to advances in AI and ML. Fuelled by the success of the ratings, the research team and AI experts at Evai are not standing still in the bear market and are in pursuit of constant upgrades to maximise the performance and predictive power of the ratings.

As the TradFi and crypto markets continue to bubble with uncertainty and emotion, users of the Evai platform will shortly have two proven technologies to help guide them. For crypto portfolio builders, the Evai Market Index updates weekly and ranks crypto assets from A1 down to D and provides an indication of the underlying value.

Launching soon on the platform, the Evai Trading Score will provide actionable insights for users providing four hourly trading updates that can be used to inform short term trading activity. Users can increase potential returns and minimise risk by using the predictive power of crypto ratings to empower smart investment decisions.

Plus (+) and (–) symbols will indicate the likelihood of a positive or negative price direction, while the numbers 1–3 indicate the strength of a cryptoassets market moves. The trading score is calculated using a multi-factor model coupled with AI and ML to compare the daily performance of each coin with its historical data. Picking out winners and losers in advance of price moves, often hours in advance, Evai platform and Evai

PRO monthly subscription (Q4 launch) have been designed to help users navigate today’s challenging bear market conditions, where traders are looking to protect funds.

The power of prediction
Recently, Evai team revealed how our crypto ratings are able to show predictive value by identifying rises and falls before they happen. This gives crypto traders the ability to invest or divest from assets to make gains and take profits, even in the current bear market.  For example, Kambria token gained 531 per cent following an upgrade (B2 from C2) while Viberate pumped 455 per cent, after an upgrade from B3 to B2. Similar upgrade success stories include OAX which saw its rating move from B3 to B2, shortly followed by a significant pump in price of 463 per cent in less than 12 hours.

The high profile rise and fall of $LUNA provided the ultimate proving ground for the Evai Ratings technology with $LUNA experiencing a 248 per cent gain following its rating upgrade last November, followed by significant downgrades in advance of its collapse.

Sounding the alarm on May 6, the predictive capability of the Evai Ratings downgraded $LUNA from B3 to C1 (8.05 per cent price decrease). This was followed by a further downgrade from C1 to C3 on May 10, prior to the 82.23 per cent price collapse. Even large-cap tokens such as XRP, Binance Coin, Litecoin and BTC showcased the power of Evai when recent price declines were signalled ahead of time by rating downgrades, enabling traders and investors alike to close positions or even short sell for profit.

Bears beware… The future is bright
Far from having to hibernate during a bear market, investors are now able to build and protect wealth. Evai deploys the latest AI and ML technology to deliver actionable data, empowering investors in any market conditions.

In a world which is rapidly digitising all assets, the time has come for a next generation ratings model.

The Evai PRO subscription service is coming soon on evai.io and available for $9.99 for a limited period.

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