- Weiss Rating downgrades EOS from B to C-
- Weiss Crypto Ratings downgrades EOS because of centralization
EOS News Today – The Weiss Crypto Ratings chart just pushed EOS down the rank. The crypto rating platform downgraded the crypto project, pointing to centralization as the major reason for the downgrade. EOS is one of the most popular digital currency projects in the industry. The project provides a platform for developers and businesses to create decentralized applications. It is one of the most active platforms when it comes to decentralized apps.
EOS Is Downgraded from B to C-
Weiss Ratings has moved EOS from B down to C-, regardless of the favorable estimations in the past. According to Weiss Crypto Ratings, the fundamental reason for the downgrade of the network’s position was the influence of huge token holders, which could decide how to sway network resources. In a tweet, Weiss Crypto Ratings said:
“1/6 We have great respect for work and thinking that went into the EOS project. But the Weiss Crypto Ratings model is not based on opinion. It is driven by data. And that data has now caused a downgrade from B to C-.”
EOS Price Today – EOS / USD
1/6 We’ve had great respect for work and thinking that went into the #EOS project. But the Weiss Crypto Ratings model is not based on opinion. It’s driven by data. And that data has now caused a downgrade from B to C-. Here's why (full article to be published soon):
— Weiss Crypto Ratings (@WeissCrypto) December 6, 2019
EOS Shows Traits of Centralization
The blockchain of EOS gains its speed from the feature of just having twenty-one block producers, which transpire transaction information amongst themselves. Hence, it is easier to spread the latest state of the distributed ledger, in comparison to the feature of Bitcoin broadcasting to over 9,300 anonymous nodes. The EOS Constitution also has special cases for blocking accounts. This is a very useful feature when it comes to hacks, but it also means that transactions can be censored centrally.
The concentration of resources in just a few hands meant ‘whales’ could decide on allocating activities. This is another reason why the EIDOS token spread such as wildfire, consuming nearly all transactions on the blockchain of EOS.
EOS is a network similar to older networks such as Steemit and BitShares. Those networks have shown that whales have an immense influence, and two nodes can even broadcast millions of free transactions. Other networks such as Lisk showed that the process of electing delegates ended up with voting power being accumulated in the hands of a few major delegates. They can all vote each other into place, without resorting to regular user vote.
EOS is currently trading at $2.75, gradually plunging from its year-to-date high of $6. The digital currency has lost the majority of the gains it has amassed this year, and it is on track to fall to lows last seen during the bear market last year.