Weiss Ratings claims EOS, the fifth largest cryptocurrency by market capitalization, warrants a “top rating.” However, analysts also claim that the much-hyped Ethereum rival has a rather serious centralization problem — one which may warrant downgraded ratings in the future.
‘The Reality of What EOS is Today’
While the world waits for EOS to officially launch, popular cryptocurrency graders Weiss Ratings has shown its bright light on one of the much-hyped cryptocurrency’s biggest flaws. Writes Juan M. Villaverde for Weiss:
The EOS dream will not come true until it fixes its centralization problems, which came into sharper focus with its launch this week.
EOS’ success, by Weiss’ estimations, hinges on this single “pivotal factor.”
As explained by Villaverde, decentralized cryptocurrency projects have “good breadth” when they share power and influence over a large group of participants. Conversely, centralized projects do just the opposite — which often contradicts the projects’ premises.
Right now, it appears EOS falls into the latter category. As noted by Weiss:
What’s ironic is that Block.one’s motto has always been “Decentralize Everything.” And indeed, EOS founder Dan Larimer is often quoted as saying that his main goal in life is to create “free market systems to secure life, liberty and property.
Unfortunately, however, Block.one’s motto and Larimer’s goal are in sharp contrast to the reality of what EOS is today.