Weiss Ratings downgrades EOS amid centralization issues

08 Jun, 2019
by Richard Allen
News
Weiss Ratings downgrades EOS amid centralization issues

Weiss Ratings, a prominent rating agency has downgraded the technology score of EOS as the project faces new centralization headaches.

EOS has had a bit of a rough go of it lately. The token saw nice gains on the back of the highly anticipated B1 event last weekend. FOMO surged as anticipation grew ahead of a big announcement - the social media app Voice. The community evidently felt a little underwhelmed as the coin dropped around 20% shortly after. 

Now, the latest issue facing EOS is Weiss Ratings’ announcement that they have downgraded the project to an A- citing centralization concerns:

While the tweet will likely have a negative impact on EOS, it also includes a boost to Cardano. Widely regarded as a solid project, Cardano has been slower than others in its development department.

EOS, which is regarded as an Ethereum killer, was named by Weiss Ratings as the best digital currency in March this year, surpassing Bitcoin and Ethereum. The announcement resulted in the coin spiking 11% at the time.

However, the centralization issues plaguing the project has become public knowledge. The system only has 21 nodes checking and validating transactions. Additionally, news regarding Block.one’s equity buyout has only added fuel to the fire. As such, EOS now has a troublesome minus next to it’s A.

EOS is currently trading at $6.49, up 0.70% in the last 24 hours.

EOS/USD chart provided by Tradingview

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