CAR has its own team of expert rating analysts who are on CAR’s payroll. However, CAR believes that there are a many experts available externally, in different parts of the world, who are extremely enthusiastic about the crypto world and always stay abreast about related developments. We want to tap into that expertise, in addition to that of our own set of internal analysts, to contribute to our platform (both CARP and CBW). Therefore, CAR encourages all crypto enthusiasts to register on our platform as External Analysts (EAs or Community Analysts). An EA can provide scores for rating parameters(subject to various controls and requirements imposed by CAR), write articles, post videos and podcasts, and eventually be rewarded for doing so.
A Business External Analyst (BA) is responsible for assessing a crypto asset issuer's business risk. Generally, a BA is an SME from the same industry where a particular crypto asset issuer is operating (eg. Fintech or Healthtech etc). A BA primarily provides scores and commentary for the business risk parameters, along with other rating parameters. Business risk may address the product development stage, team structure & management, macro economic factors, competitive analysis of the product, addressable market size and the product development roadmap.
A Legal External Analyst (LA) is responsible for assessing a crypto asset and its issuer's legal risk. Generally, a LA is a lawyer or is an expert in crypto related regulations and knowledgeable about the regulatory dynamics in the crypto market. An LA primarily provides scores and commentary for the legal risk parameters, along with other rating parameters. Legal risk focuses on the legal aspect of the crypto asset as well as the crypto asset issuer. This may include among other things, understanding the legitimacy of the business model or product being offered, vetting of company related documents, company capitalisation structure, intellectual property, the nature and legal validity of the crypto asset, and the regulatory framework under which the crypto asset is being offered etc.
A Technology External Analyst (TA) is responsible for assessing the technology risk of the product being offered by the crypto asset issuing company. A typical TA is a blockchain developer having understanding of blockchain solution implementation. A TA provides scores and commentary for the technology risk parameters, along with other rating parameters. Technology risk typically involves assessing the technology of the product or solution being offered, usage of blockchain, if blockchain is adding significant advantage, maturity of the technology being used and competitive technology available in the market etc. It may also include an audit of the smart contract.
A Financial External Analyst (FA) is responsible for assessing a crypto asset and its issuer's financial risk. In general, a FA is from the BFSI industry having extensive knowledge of financial due diligence and modelling. A FA primarily provides scores and commentary for the financial risk parameters, along with other rating parameters. Financial risk assessment may include analysing the financial strength of the company, historical financial analysis, cash flow analysis, capital structure, ratio analysis, financial projection, usage of funds, and value of the token etc.