Weiss Ratings Names Four Cryptos To Avoidbr>
Weiss Ratings, a provider of market research and stock analysis on ETFs, mutual funds, cryptocurrency, banks, and insurance companies, has named four cryptocurrencies that investors should stay away from.
In an online post, Weiss Ratings said that while a number of crypto projects have introduced landmark innovations, such as ethereum, NEO, EOS, Cardano and Hedera, there are a slew of supposedly “new and innovative” cryptocurrencies that are “little more than copycat regurgitations of prior projects.”
In its latest analysis, four cryptocurrencies received a grade of “D” (weak) or lower. These include Aurora Chain (AOA), Bitcoin Diamond (BCD), Credits (CS), and Mixin (XIN). For each cryptocurrency, they review thousands of data points and dozens of indexes they have created to measure each key aspect of a token’s technology, adoption, investment risk and investment reward.
Aurora claims to offer unique intelligent application isolation, enabling multi-chain parallel expansion and an unlimited increase of TPS with guaranteed security. Its native cryptocurrency AOA ranks a respectable 75th in market capitalization among the 2,000-plus cryptos in the Weiss Ratings database, indicating some interest from investors. However, Weiss believes that it’s more of a testament to hype and misinformation than any real substance. Weiss said the project has number of red flags, including lack of identifiable programmers and developers, sparse adoption metrics, very weak trading volume, no visible computer code, and others.
Bitcoin Diamond claims to be a global currency that investors can use to purchase products from any country. It is a bitcoin clone that dates from the heady days of late 2017, when cryptocurrency prices were roaring and cloning bitcoin was a favorite get-rich-quick scheme. According to Weiss, BCD developers made no significant improvements in the code, adding that it has only a tiny community of users with a virtually nonexistent developer support.
Credits bills itself as an open blockchain platform with autonomous smart contracts and an internal cryptocurrency. The platform is designed to create services for blockchain systems using self-executing smart contracts with a public data registry. Weiss said that they can’t find a credible explanation of precisely how the platform will achieve its lofty speed goals of a million transactions per second. It added that “this project may be nothing more than an elaborate scheme to separate first-time crypto investors from their money.”
Mixin, which received an E minus rating, is a mobile blockchain network that “connects all existing blockchains with unlimited throughput.” The team behind Mixin claims to have a fix for just about every problem that has plagued cryptocurrencies from the very beginning. However, Weiss noted that there is a suspicion that its developers’ LinkedIn profiles may be faked. In addition, the Mixin whitepaper contains no technical details, the dApp that’s supposed to connect with the Mixin network doesn’t work, and the company’s GitHub contains no reference to any of the code that the Mixin whitepaper describes.