By CCN Markets: Weiss Crypto Ratings on Friday announced that it is downgrading the technology score of EOS, a blockchain protocol developed and distributed by Block.one.
The US-based economic research agency said EOS has "serious problems with centralization," three months after it put the project among the top three blockchains alongside Ripple and Bitcoin. Weiss argued that Block.one has taken no necessary steps to improve the protocol, adding that not even the firm's event last week, wherein it announced Voice, an upcoming social media platform taking on a behemoth rival in Facebook, did anything to alleviate the centralization issues.
"It’s now up to ADA to launch a truly decentralized POS blockchain," said Weiss.
Weiss is Untrustworthy
Weiss' take on EOS, nevertheless, appeared drastic than well-researched. Earlier, the agency continuously placed the Block.one's protocol atop other blockchain projects, calling it A-grade. The favorable rating came despite multiple reports/complaints finding the centralized nature of the EOS blockchain. Los Angeles-based Whiteblock, for instance, called EOS a glorified cloud computing service that lacked blockchain's most essential features, like immutability.
The Whiteblock report made to the wire in November 2018, four months before Weiss awarded EOS the top position on their best blockchain projects' list. The scenario proves that Weiss hugely ignored certain fundamental aspects while rating EOS higher than other blockchain projects.
Viktor Bunin, a protocol specialist at Bison Trails, believes no one should trust Weiss ratings on cryptocurrencies and blockchain projects because of it's broken and opaque "proprietary” methodology.
"Something like EOS, which is certainly promising, receiving a higher score than Bitcoin is a clear sign of faulty judging criteria," Bunin wrote in February 2018. "This isn’t meant as a knock against EOS or any other cryptocurrency on their list, but these results just don’t pass the smell test."
Is EOS a Bad Investment?
There is nothing wrong about centralization as far as the company in charge of making decisions is making the right decisions. EOS perhaps is not a better blockchain — and it could very well be overhyped. But, as a standalone project backed by a well-funded startup like Block.one, it has room to grow and boost EOS adoption much like any other technology project out there, with its specific risks and rewards.
Weiss Cryptocurrency Ratings, for now, is rating EOS, Ripple, Bitcoin, Ethereum, or any other blockchain based on bizarre crystal ball metrics. It is wiser for investors to ignore such wannabe blockchain analysts.