Weiss Ratings: EOS downgraded amid signs of centralization
Weiss Ratings, an independent financial ratings agency, has downgraded EOS amid growing concerns about centralization.
Signs of centralization
On Mar. 25, Dan Larimer, the Chief Technology Officer at Block.one, revealed that on June 1, EOS will make the “biggest announcement” since EOSIO was launched.
— block.one (@block_one_) March 25, 2019
One day before the event, on Mar. 31, Mahbod Moghadam, the former chief community officer of Everipedia and founder of Genius.com, stated that EOS could be about to release a social network that will be developed on top of Everipedia to make it compatible with the IQ token.
if you increase “internet knowledge”, you increase your IQ – simple!
— Mahbod Moghadam (@mahbodmoghadam) May 31, 2019
By June 1, the news was out and Brendan Blumer, the 32-year-old CEO at Block.one, revealed that the blockchain-enabled open-source software publisher’s new social media network, called Voice, will be deployed on EOS, one of the largest platforms for building decentralized applications (dApps).
In an “Apple Keynote” like presentation, Blumer explained that the existing social media platforms such as Facebook are designed to use their users data to primarily benefit the platform and their owners and management.
“It’s the platform, not the user, that reaps the reward. By design, they run by auctioning our information to advertisers, pocketing the profit, and flooding our feeds with hidden agendas dictated by the highest bidder. Voice changes that.”
Therefore, the new Voice social media network was born to give users more control over their data and also allow them to benefit from the content they produce.
“Voice will cultivate creation, sharing, discovery and promotion of content on social media platforms by real users, not bots and fake accounts. Through a truly self-sustaining economy of ideas, users will directly benefit from their ideas and engagement on the platform.”
The way this announcement was handled gave signs of severe centralization issues to Weiss Ratings, which decided to lower EOS’s technology score. This is a radical change in the agency’s outlook towards EOS since it had been rated besides bitcoin on Weiss’s emerging trends in crypto markets report.
EOS DOWNGRADE: #EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score. It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.#crypto #Cardano #BTC
— Weiss Ratings (@WeissRatings) June 7, 2019
EOS, currently ranked #6 by market cap, is up 2.13% over the past 24 hours. EOS has a market cap of $5.88B with a 24 hour volume of $2.52B.
Chart by CryptoCompare
Filed Under: EOS, Price Watch
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.