Weiss Ratings has announced that it has had to downgrade the cryptocurrency EOS on its ratings due to centralization concerns.
The U.S.-based financial research firm revealed its report on the move on June 7, stating in a tweet that the EOS blockchain has “serious problems” when it comes to centralization.
In their report, Weiss Ratings alleges that the EOS cryptocurrency evidently has severe issues and that even EOS developer Block.one’s “event last week did anything to alleviate that.” The claim obviously referred to the June 1 launch of a new EOS-based platform by Block.one.
As a result, Weiss reported that they decided to lower the cryptocurrency’s technology score, the firm added in its tweet.
In the same tweet, Weiss hints that “it’s now up to” Cardano (ADA), one of the other top cryptocurrency platforms in the industry, to prove that its proof-of-stake (PoS) blockchain is a truly decentralized system. The firm’s point noted:
“It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.”
The decision to downgrade EOS marks a drastic turn for the company in terms of its outlook towards the EOS blockchain.
In March, Weiss Ratings released an annual report that ranked EOS alongside top cryptocurrency by market cap bitcoin (BTC) and third-largest XRP. Together, these topped the crypto industry’s emerging trends list in terms of their technology.
In that report, the company rated EOS’ technology and platform higher, giving it an A grade. It noted at the time that the decentralized application (dApps) platform was the top cryptocurrency among those seeking to challenge Ethereum (ETH) in providing the base upon which the “new internet” would be built.
On June 1, EOS developer Block.one announced the launch of a new blockchain-based social media network dubbed ‘Voice.’ According to the firm, the new platform would utilize the EOS blockchain technology to provide added transparency into its operations.
Weiss avers that it is the leading United States-based source of “independent, unbiased, [and] trusted ratings,” for stocks, mutual funds, exchange-traded funds (ETFs), cryptocurrencies, and financial institutions.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.