- The Chinese Ministry of Industry and Information Technology has published the fifteenth report on project rankings in the cryptocurrency market.
- EOS continues to lead the field, but Ethereum, TRON were able to displace them from second place.
The Ministry of Industry and Information Technology of China (CCID) has published the fifteenth project ranking of the most successful and valuable cryptocurrencies. Once a month, the Ministry publishes a report that assesses cryptocurrencies in various areas and thus provides an overview of technological development and its usability for the economy.
EOS still 1, Ethereum regains second place
According to the CCID’s 15th global public #blockchain technology assessment index, #TRON was ranked top 3 in this list together with #EOS and #ETH. In addition, #TRON also ranked No.1 among all Chinese Public #Blockchain. #TRX $TRX pic.twitter.com/5RYCebpL0u
— Justin Sun (@justinsuntron) December 9, 2019
The CCID index is made up of various indicators that try to represent complex projects in a tangible matrix. The index describes that the usability in practice as well as their use in everyday life in real life plays an important role. In addition, the popularity of the project is evaluated and influences the overall ranking.
The ranking is intended to provide investors, companies and the general public with the most important information briefly and concisely in the form of a ranking. In the past, the ranking has already been heavily criticized in the community and its expressiveness has been questioned.
Criticism of the CCID Ranking
Experts criticize that both the exact weighting and the individual parameters for the ranking are not broken down in detail and that the necessary transparency is therefore not provided. The founder of Qtum, Patrick Dai, commented some time ago on the ranking on Twitter and explained that although Qtum has risen in rank, he does not know the basis on which this decision was made (freely translated):
I do not know what’s their standard, but Qtum looks better than last time.
It is also surprising that VeChain is not on the list. VeChain works together with well-known names like DNV GL, PriceWaetHouseCoopers (PWC), DB Schenker or the BMW Group. VeChain Thor Blockchain is used in various sectors such as the automotive, pharmaceutical, logistics, education and insurance industries.
EOS is graded at Weiss Crypto Ratings
In contrast to the CCID ranking, Weiss Ratings has downgraded EOS from B to C as a result of suspicion of centralization of the network.
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
Among other things, the company assesses the degree of adaptation as well as the profit/ risk ratio of the respective cryptocurrency on a scale from A to E, where A represents the best grade. The following overview shows the five best rated cryptocurrencies on the Weiss Rating Scale.
As we have already reported, there is a suspicion of centralization in the EOS network because six registered block producers are backed by the same company. As EOS New York pointed out on Twitter, all accounts from the same Chinese company, Shenzhen, were registered at the same time.
1/ Six registered producers on EOS are managed by a single entity. This is unacceptable. We have requested the signatures of the top 50 registered producers so that all token-holders may know who does and who does not condone such impropriety. Read on for evidence and the URLs: pic.twitter.com/5ZhFvOWqPB
— EOS New York (@eosnewyork) November 27, 2019
All in all, it can therefore be said that the rankings presented should not be used as the sole source of information to assess a crypto market project and certainly not to make a sound investment decision.