# EOS Network Downgraded To C- On Weiss Ratings For Centralization And Potential For Faking Activity

EOS network's governance issues continue to haunt them as Weiss Ratings recently downgraded the network from B category to C-. Weiss Ratings also posted a Twitter thread explaining why they had to downgrade the project which was once hyped as “Ethereum Killer.”

Weiss Ratings in its tweet claimed that although the public sentiment was right behind the project in its hayday and the platform was known for being a fast, efficient and most important a decentralized ecosystem. However, in the past year, there has been a continuous decline in the decentralization aspect where major whales control the majority of the token flow which could be of a deep concern.

Weiss Ratings claimed that the top 100 EOS token holders who represented a meager 0.01% of the total token holders on the platform, has a whopping 68% of the voting power on the network. This means these whales can easily manipulate the network as per their will.

One of the main reasons that the EOS network was lightening fast compared to the likes of Bitcoin or Ethereum because the platform has locked the number of block producers to just 21 which means any update on the leader had to go through these 21 block producers. Compare it to Bitcoin which has over 9,000 nodes, thus each transaction on the network has to run through all these leaders to verify the authenticity of the transactions.

However, this feature which was considered as a boon for the network soon turned out to be a bane as it leads to centralization in governance. The recent case where it airdropped EIDOS token, which led to great congestion on the network. The congestion led to a very high operational fee and thus the whales who had the EOS tokens were able to pay for high transaction fees and hoard the EIDOS tokens.

## Whales could Diverge Resources to Fake Activity

The Weiss Rating tweet also speculated that since the resources and control of the network are concentrated in the hands of very few, they could easily fake activities like doing a series of fake ghost transactions to heighten activity on the network.

This was even proven during the EIDOS airdrop when the network was registering transaction activity as high as 43 million per day, most of which were done towards gaining more free EIDOS. The EIDOS airdropped required users to send a minimum amount of EOS to an EIDOS wallet address and in return, an unspecified amount of EIDOS was sent back to users' accounts.

EOS was trading at $2.75 at press time and has lost most of its gains from its yearly highs of$6.0. Looking at the string of controversies surrounding the altcoin, the team behind it would really need to rethink their strategy for the long run.

# EOS (EOS) Live Price

## 1 EOS/USD =$3.6605 change ~ 2.09% Coin Market Cap$3.48 Billion

24 Hour Volume

$546.13 Million 24 Hour VWAP$4

24 Hour Change

$0.0765 #### All of Today's EOS Price Analysis, Chart Forecasts and Industry News  10:24 PM Block.One's 'Voice' Social Network Has An Open Door Polic... 01:27 PM Block.One Launches EOSIO 2.0 with More Security and Stabi... 06:00 PM Binance Launches EOS Perpetual Contracts With Up to 75x L... 02:14 PM Block.One's EOS VC Wants to Boost EOSIO Ecosystem By Offe... 06:35 PM Equilibrium’s EOSDT Stablecoin Backed By Stability Fund S... Get Free Email Updates! *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates I will never give away, trade or sell your email address. You can unsubscribe at any time. James W James is a cryptocurrency enthusiast, an advocate for the development and exposure of blockchain technology, and believes in the use of digital assets for the good of the society. Enthralled by the huge potential of cryptocurrencies and their underlying technology – blockchain – James dedicated himself to learn more about the industry, becoming a highly sought-after writer in the sector. He covers news, white papers and any content related to cryptocurrency and blockchain in general. [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose. [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer 3,262Fans 2,712Followers 4,097Followers #### Live Bitcoin Price & Latest BTC Chart News #### Today's Latest Crypto News ### DigixDAO (DGD) Jumps 17% After ‘Project Ragnarok' Gets Approval DigixDAO holders have voted in favor of the dissolution. Although Digix itself is “against the dissolution,” with over 96% votes, DigixDAO holders have agreed... ### Litecoin Dev Says LTC Could Soft Fork To Activate Taproot-Schnorr On Same Timeline As Bitcoin ### EOS’s Loss is TRON’s Gain As It Officially Becomes the Second-Largest Dapp Ecosystem ### UK’s HMRC Looks To Track Top Crypto's, Including Privacy Coins With Blockchain Analytics Tool ### Uzbekistan Gov't And Cardano’s Emurgo Partner On Blockchain Task Force For STO Regulations Emurgo, Cardano’s blockchain commercial wing, has inked a partnership deal with the Uzbekistan government to help with setting up a task force which will... ### Binance Adds 2nd Fiat To P2P Trading Platform, Vietnamese Dong VND-To-Crypto Now Open Binance crypto exchange announced the second fiat currency on their peer-to-peer (P2P) platform on Monday, January 20, 2020. The Vietnamese Dong (VND) was... ### Fed’s “Not” QE Pushing Dow and S&P 500 to ATH makes Investors Nervous, Driving them into Bitcoin Buy Bitcoin today while the US Stocks markets stay closed in observance of Martin Luther King Jr. Day Federal Reserve Chairman Jerome Powell might... ### Crypto Payment Processor BitPay Adds XRP Support On Apple iOS And Android BitPay, a crypto payment service which provides users a wallet as well as gift cards which can be bought using different coins, is now... ###$7 Trillion AUM Giant Fidelity Posts Job Opening For Bitcoin Mining Engineer

Fidelity is looking to expand operations and as a result, is hiring a Bitcoin (BTC) mining engineer to help with the design, maintenance, and...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.