Weiss Ratings: Bitfinex May be Using Traders’ Tokens to Vote Itself In

June 21, 2018

Weiss Cryptocurrency Ratings was favorable toward EOS based on the preset criteria, but remains skeptical of how the network is ran in reality.

Bitfinex, one of the top EOS block producers, may be using token deposits by its users to vote itself in, tweeted Weiss Ratings. A few days before that, the crypto analysts at Weiss Ratings commented that in fact, EOS was one of the most centralized ecosystems.

https://twitter.com/WeissRatings/status/1009538909687205890

Weiss Ratings awarded a B rating to EOS, mostly propped up by good adoption and innovative technology. However, the rating also came with warnings that crypto systems are still experimental, and their real performance is variable.

The EOS voting still continues, with 24% of tokens having voted. However, for those whose tokens never left exchanges, voting has been blocked. The election of one block producer cannot affect the network that much. However, the possibility that block producers gain influence and cannot be voted out is worrying.

Analysis of EOS voting also shows that Bitfinex gathered half its votes from several large wallets, or whales. The account of bitfinexeos1 is also the top rated block producer at the moment, earning the most votes.

To the credit of Bitfinex, a couple of days ago, a special tool was unrolled to vote through exchange wallets. And since the EOS voting is ongoing, the current balance of block producers may change.

Despite the accusations, the EOS market price inched up by about 3% to $10.67. But trading volumes have thinned out. The share of Tether (USDT) trading in EOS pairs is about 37%, revealing the weight of the fixed-price asset. EOS trading remains concentrated on Binance, and the price is for now stagnant a bit above $10.

The chief criticism against EOS comes from the older and prominent voices in the crypto sphere, and most of all, Bitcoin maximalists and Ethereum adopters.

The chief developer of EOS, Dan Larimer, refuted those claims, believing that governance is always needed in blockchains. In a recent explanatory blog to the community, he wrote:

“There is widespread belief that there is no “governance” of Bitcoin or Ethereum and that these protocols are decentralized. There is further a belief that the code should be law. In reality all blockchains have human governance processes that reveal themselves in emergencies and when the protocol upgrades.”

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