Analysts at one of the largest rating agencies Weiss Ratings downgraded the Chinese platform EOS. The reason for the decrease from B to C was the excessive centralization of the project.
1/6 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-. Here's why (full article to be published soon):
— Weiss Crypto Ratings (@WeissCrypto) December 6, 2019
According to the agency’s report, the TOP-100 of EOS token holders have 68% of the vote, which is too much for a cryptocurrency project. That is, these 100 people can collude and take control of the whole network.
Another reason for the downgrade is network clogging, which made the transactions of most small EOS holders to stop.
This is not the first time that Weiss Ratings has downgraded the EOS project due to neglect of the industry’s fundamental principle – decentralization. The last time this happened in June of this year.
Recall that EOS is one of the main competitors of Ethereum, this project raised investments more than 4 billion US dollars during the ICO.