On February 16, the Weiss Ratings Group sent out an email in response to feedback regarding the rating they gave STEEM compared to the other cryptocurrencies on their list.
For those who are aware, STEEM got a B- which was one of their higher ratings.
Weiss sees mostly positives for STEEM with a couple negatives. Overall, it is an extremely bullish report about the future of what is taking place on this blockchain.
STEEM is a utility token, an idea that went over well. The fact that people log in and immediately see the prospect to make money, that scored well. There are many tokens out there which are still "selling an idea". STEEM is providing real world applications,right now. This blockchain was designed for social media activity and it is delivering. Tens of thousands of people are utilizing it every day while adding to their accounts.
This is fairly straightforward.
Weiss listed the strengths of STEEM as follows:
Strength #1. Decentralized.
Strength #2. Voting.
Strength #3. Easy upgrades.
Strength #4. High speed and low costs.
Strength #5. High usage.
Strength #6. Popularity.
Strength #7. Individuality.
Strength #8. Other apps.
Obviously much of this is known to Steemians who are on here for any length of time. However, it is good that this group is stating them for others to understand. The blockchain itself is designed to avoid many of the problems BTC and ETH are having. Scaling to the degree they are struggling with will not take place...at least for a long time. Also, the "I'm going to take my ball and fork the blockchain also isn't present with the upgrade voting system. Remember, this is a report put together for investors and they like as much certainty as possible. Constant in fighting does not endear people who put their money on the line.
Since STEEM did not get an A or even a B+, there must be something that got under the skin of the people who did this rating.
Simply put, STEEM lost points because of the Whales.
At this point, the distribution of STEEM is too centralized. This is a point that few can contend. Weiss acknowledged that this is something that could lead to censorship.
Nevertheless, even though they took points off the rating for it, they did not seem too concerned. Recognizing that this blockchain is rather new, they even took the approach that having the founders with the bulk of the power could be a good thing as the early stages can be moderated.
Weiss said this could be a problem in their eyes if it continues, something they will watch as time goes by.
Fortunately, the power of the Whales is already diminishing. As my post the other day showed (which agreed with the numbers through Jan 31st; which agreed with the numbers through Jan 25th; which agreed with the numbers from Oct 25th), the total amount of SP that is in the hands of the Whales is decreasing as time passes. More SP is being picked up by the lower tiers, as a group, while a couple Whales reduce their holdings.
While Weiss did not mention it specifically, the STEEM system is designed to spread the distribution around. Since most of the reward pool goes to authors, those creating the content are the ones who get the bulk of the payouts each day. From a simple numbers perspective, the Whales cannot create enough content to override the influx of new people (hence new posts) that show up each day.
I think many of you can now see why I am uber bullish on STEEM.
The one negative point that Weiss had is being tended to. Hence their concern is not really a concern since the system appears to address it. Outside of that, their report has nothing but strengths in it.
And that is a very good thing.
To read the posted email.... https://steemit.com/steem/@newsflash/weiss-report-on-steem-feb-16th
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