Cryptocurrency ranking company, Weiss Crypto Ratings released a rating that saw the EOS cryptocurrency downgraded to the “C-” ranking.
In a tweet, Weiss Crypto Ratings pointed to the fact that EOS essentially failed to decentralize. Hence, the reason for the setback.
Weiss Crypto Ratings tweet reads: “We hold great respect for work and thinking that went into the #EOS project. But the Weiss Crypto Ratings model isn’t based on opinion. It’s driven by data. And that data now caused a downgrade from B to C-.”
At the same time, Weiss Crypto Ratings shed light on the other factors behind its decision. The ranking company said that the top 100 EOS token holders represent a meager 0.01% of the total controllers of 68% of the voting power. “So much for the claim that EOS stands as a major improvement over older cryptos like #Bitcoin (#BTC) and #Ethereum (#ETH),” the tweet continues.
Another factor pertains to the misallocation of resources. According to the company, Fractional Reserve CPU, Resource Exchange (REX) and the most recently proposed overhaul all failed to solve the growing problem of clogged networks. Therefore, causing frozen transactions for the majority of small EOS token holders.
Notably, Weiss pointed out that its model doesn’t try to solve the issues above. Nor does it need to. Quoting the tweet: “The focus dwells on the data, which says that EOS suffers from insufficient decentralization. Also, misallocation of resources, clogged network operations and more.”
The initial love story
Before now, Weiss already released two cryptocurrency ratings. Its first report (March 2019) is entitled “Dark Shadows with a Bright Future.” It contains an analysis of over 120 cryptocurrencies, ranking them based on adoption and technology.
Notably, Weiss only awarded three cryptocurrencies — XRP, EOS and Bitcoin — the “A” ranking. Thus, XRP topped the list of cryptos based on adoption and technology while EOS was a runner-up outperforming Ethereum and Cardano.
The rating company also expressed the belief that EOS stood the chance of giving Ethereum a tussle. And eventually, become the backbone of the new internet.
And yet soon Weiss started to change its mind. Already in June 2019, it downgraded EOS to the “B” ranking precisely because of the centralization-related issues. Judging by the new rating, those have not evaporated.
To remind, AltcoinBuzz reported that Crypto.com announced the launch of a syndicate platform that supports the EOS coin and gives discounts.