Weiss Ratings Puts These 4 Cryptocurrency Tokens on the Should be Avoided List
4 Cryptos to Avoid
The decision of which cryptocurrency to invest in is a big one. The technology is constantly evolving and its popularity is accelerating, and with that comes more innovations. For instance, Ethereum led to the development of smart contract platforms, NEO, EOS, and Cardano have produced more speed and governance.
Likewise, there has been a growth in “new and innovative” cryptocurrencies that seem to be nothing short of copycat regurgitation of earlier projects.
As a result, Weiss Cryptocurrency Ratings, which can be found on another platform, can be helpful for investors. The rating provides objective measures that distinguish positive projects from the mediocre ones. There are four projects that have received a “D” rating this week, which are Aurora Chain, Bitcoin Diamond, Credits, and Mixin. Very few cryptocurrencies have managed to receive the coveted “A” rating – two continuous projects that do so though are Bitcoin and EOS.
Back to the poorly-rated projects of this week though. Here is an overview as to why they were rated so poorly.
Aurora Chain (AOA)
Aurora Chain is 75th in market capitalization among 2,000 cryptos in the rating database. The rating shows that here are some investors who are interested, but there are also some red flags that people should be aware of. For example, the crypto has a consensus algorithm that is a delegated proof-of-stake plus byzantine fault tolerance – though this may seem to be a unique combination, it isn’t. Second, the project’s whitepaper reiterates information that may have dubious sources. Third, the platform’s programmers and developers are not identified by name on the platform’s website. Fourth, the crypto does not have a code, there are sparse metrics, and the coin is listed on as ingle exchange, which makes it difficult to trade.
Bitcoin Diamond (BCD)
Bitcoin Diamond seems to have been established in late 2017 when the market was at its best. The platform released an open-source Bitcoin code and hyped the coin as the “next big thing.” Even though investors jumped in, the platform seems to have not made much improvements. Rather, the platform increased its coin’s maximum supply from Bitcoin’s 21 million to 210 million under the likely false premise that higher token supply may lead to it being used in ordinary transactions other than bitcoin. Further, the platform established an algorithm that was meant to prevent mining companies from developing specialized hardware – but the patch was actually just temporary. Further, there is a very small community of users and developer support is just about nonexistent.
Credits’s developers claim that it can do a million transactions per second. Based on the evidence though, this does not seem to be true. The platform also provides no indication as to how it will meet its speed goals. Other red flags include busted encryption and that it has a “groundbreaking new consensus algorithm” – which it does not. The platform has an algorithm very similar to that of EOS, Steem, Ark, and Cardano. The platform also tends to use a great deal of buzz words to build hype, which makes it a bit shady.
Finally, Mixin’s developers claim to have a solution for almost every issue that impacts cryptocurrencies and they also have noted that they intend to develop a decentralized exchange that can trade any cryptocurrency asset for another. Those who have taken a closer look have noted that the platform’s dApp that was meant to be connected to the Mixin network does not work, the platform’s whitepaper does not feature technical details on how the crypto will be developed, and GitHub, which is where many developers publish and upgrade code, features no references to Mixin’s code that the whitepaper describes.
Ultimately, these are considerations to take into account for anyone looking at these cryptocurrencies.