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Like a good student gone rogue, it seems that the cryptocurrency EOS (EOS)trade is losing laps compared to its buddies at the top of the crypto chart. Weiss Crypto Ratings – the crypto firm known for playing the role of a teacher who grades her students – released yet another scoring board on Twitter for the final quarter of 2019, which saw EOS slumped from B to C.
You will recall that the esteemed virtual currency was in the ‘A’ league with the likes of Bitcoin(BTC)trade and Ripple (XRP)trade as AllStocks Crypto News reported at the previous ratings of the year released in March. However, that didn’t last for so long as EOS was demoted just three months after when the second crypto rating of the year was released. You think plunging from A to B is bad? How about slumping all the way down to the C league?!
According to Weiss Crypto Ratings, EOS is found wanting in some of the requirements relevant to be in the A or B league as such it is no longer fit to occupy those levels.
The firm took to its Twitter page to make the announcement, stating:
“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-.”
Shedding light on the factors that caused the painful demotion, Weiss Crypto Ratings outlined three major reasons including failure to decentralize, misallocation of resources, and clogged network.
EOS Decentralization Problems
EOS reportedly failed to address the decentralization issue that was the major pull factor from A to B. According to Weiss Crypto Ratings, EOS that supposedly has major improvement over older virtual assets such as Ethereum (ETH)trade seems to lack a fully decentralized network. Findings show that “the top 100 #EOS token holders, representing a meager 0.01% of the total, control a whopping 68% of the voting power.”
Adding to that, the issue of clogged network in the system is yet to be rectified. All of its attempts including the recent overhaul has been in vain. Therefore, rectifying frozen transactions on the blockchain network doesn’t seem feasible anytime soon. This is definitely not a class A attribute.
Having little or no confidence in the digital coin that it once claims would “give Ethereum a tussle,” the crypto teacher was forced to pull the cryptocurrency down to C.
Is the worse yet to come? Would EOS regain its strength? Most importantly, will these issues be solved anytime soon? Rest assured we will keep you updated.