Weiss Ranking System: How STEEM Got Such A High Mark: Do Not Touch Bitshares???
I listened to an podcast put together by the Weiss Rating Group. I will admit that it was a bit of a commercial for there investing plan but it was rather informative.
Earlier in the week, Weiss moved STEEM from a B- to a B in their ratings. This is a rather high mark considering B+ was the highest.
Before going any further, I must state that the Weiss ratings are very fluid and they are for investors. This is the audience they are appealing to. Therefore, much of the criteria is based upon the timing and recent price action of a token.
Overall, they use 7 criteria to arrive at their results....
A) Governance-the ability to upgrade itself without hard forks from disputes.
B) Speed of transactions
C) Cost of transactions
D) Things you can do with the smart contracts
E) How decentralized the currency is
F) Security
G) Adoption
From this list, it is rather easy to see how STEEM scored so well.
This blockchain went through 19 forks and is still running a single chain. That says a great deal about the governance. We know the speed and zero cost are not beaten by any blockchain. Since STEEM is a third generation blockchain, the smart contracts can do whatever is desired. Security is unmatched with a decentralized exchange and a key account recovery system.
The areas where STEEM might fall a bit short is in the area of decentralization since the tokens are still overwhelmingly in the hands of a handful of players. What is interesting is that this is not marked down as much as one would think. Bitcoin, for example, was marked down since 70% of the hashrate is in the hand of 4 or 5 miners.
We also see STEEM with a low adoption rate which is not surprising since it is a relatively new currency and blockchain.
STEEM is also on their top 3 "recommend" list. The reason for that is because they view STEEM as a social media platform as much as a cryptocurrency. This has created the situation where STEEM is a working platform that is actually used by people.
The other two tokens on this list are EOS and Cardano.
One final point that I took note of from the call.
Bitshares is on their do not buy list since they basically consider it EOS version 1.0. Thus, if you are going to buy Bitshares, just buy EOS since it has a lot more than BTS.
This is the same logic applied to Bitcoin Cash and Bitcoin Gold (the other two on the do not buy list are Electroneum and Verticon).
For many of us, this is mixed news. I know there are a lot of people on here who hold both STEEM and BTS. On one hand, this was a terrific call because of STEEM being recommended. Of course, the other hand is BTS put on the do not buy list.
Obviously, Weiss is not the end all and be all. However, they are an independent third party who is trying to rate cryptocurrencies in an unbiased manner. For STEEM, this might help in getting it some attention since there is a lot going on with this blockchain. It must be said that most of the projected applications and upgrades do not figure into the ratings at all. They only quantify the criteria above to determine a risk/reward assessment. Things outside of those variables will not figure into the results.
I believe we are going to see STEEM on the radar of other entities covering this industry in the next few months. There is a lot of noise about to be made by this blockchain.
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Well, it's really amazing that their top picks are the same as ours, which just goes to show you that you don't need to be a rocket scientist to be able to sort out the good from the bad . . . once you've hit on the correct criteria to base your judgements on anyway.
I do think they are being a bit short sighted about BTS though. After all, what's the fact that others have based their core code on you have to do with whether you're viable on your own as is? The same logic would theoretically apply to STEEM - perhaps even more so considering @dan's attitude towards STEEM, and @ned in particular. They're new to the game and doing a pretty good job, IMO, and I think they'll "come round" on BitShares, in time.
The @dan and @ned situation doesnt figure into the ranks for STEEM....
Nor does the @stan ideas figure into BTS.
The fact that @stan is already finding engineering people to work a three chain system with a middle chain linking the institutions and the present BTS with EOS being in the middle means that BTS isnt going by the wayside.
@stan's idea is to growth both BTS and EOS by joining some things.....he is silent on anything in the future about STEEM although he isnt in the circle there, so that isnt much of a surprise.
I will keep hunting information and writing summaries as they come about to try and keep you in the loop when time is short.
It doesn't directly figure in their analysis, but if we're talking about "replacing" one thing for another, the comments by @dan that EOS will replace STEEM would seem to be more damaging to STEEM than anyone else, something that Weiss seems to be overlooking. Meanwhile, there is a complete absence of that kind of thing BTS vis-à-vis EOS, in fact it's just the opposite as there seems to be strong synergies between the two. Could it be that Weiss somehow thinks a "merger" of the two could somehow mean that BTS shareholders would be left out in the rain? Not a very reasonable assessment if so.
Thanks @taskmaster4450 and @cryptographic!
I faced many opinions regarding synergy of EOS and BTS, but does anyone has any idea how this could be implemented on a tech level? I would be thankful for any good link to read more on the point.
And it is nice to see the conversation between 2 my favourite steemit authors here! :)
I don't know much about the technical details, but what I've heard is a wholesale substitution or incorporation of BTS into the EOS blockchain, but either would undoubtedly come with at least a 1:1 exchange. EOS is still in "testing" - I would say development - so things are still very speculative. The idea is that if EOS is better, then why not switch? Or better yet, why not just take over EOS and continue calling yourself BitShares? FAQ 21 explains how that is a possibility. https://www.eos.io/faq.html
Steem ecosystem is in a positive trajectory and we will always see more success . What we need is patience , dedication and keep steeming. Thanks for sending in this update
Yes, I think we really need patience. The main Steemit app isn't even two years old yet, but we will grow in the next two years.
Absolutely @charles1.
The development team is hard at work. That is what matters. There are applications being designed by individuals as we speak...all this adds to the ecosystem.
As does each comment and post. We all need to do our part of making this place much bigger and better.
Thanks for this article. I must confess that I've not been that into the Weiss ratings since they came out because there was a lot of controversy about their integrity in the traditional investment space. This article though shows the criteria they're using to judge crypto, which allows us to evaluate for ourselves.
I don't often share links to my posts in people's comment feeds, but I do think this one on why Coinbase might add STEEM might appeal to you. (It actually won me 2nd place in a contest from TimCliff!) In the video I use the GDAX/Coinbase rubric document to evaluate STEEM against XRP for which is more likely to get added. I think of it in context of this post because both are sharing the criteria to guide the reader/viewer in deciding about the coin for themselves.
I will take a look at it...thank you.
Although I am not totally convinced about Weiss as they look more like a marketing firm selling investment ideas, I think their thoughts bring perspective about the assets in the market. I am glad to hear the attention that Steem has gathered from their research. I think that those of us that use this platform, know its worth and are comfortable investing time into it because of the opportunities to not only get into crypto but also gain a wealth of information and community. No other asset compares in this perspective. Thanks for the update as I missed the webinar!
There is no doubt they sell their research. In fact, that is why they do it...to sell it. That is their main goal.
I dont think we can look at it any other way. That said, I do not believe it takes away from their analysis. Most research firms sells their findings in the financial world.
Are they biased? I dont think with any particular coin.....I think they are biased towards getting people to subscribe to their services....
Of course, they are not the be all.....
Hopefully they are good at their marketing and get some people buying STEEM.
I've said it before, but I'll say it again.... reading your posts TM, is so refreshing in comparison to the usual doom and gloom everyone else posts about. Everyone here is an early adopter of a platform and technology that has a huge daily intake despite no marketing or advertising.
I'm sure that once Steem Inc have completed the next fork they'll be shouting about Steem from the rooftops, and then the uptake will likely be meteoric! Most of us will have some decent stake by then.... it's really exciting.
Weiss are just reporting on what they see, but we do owe them a lot. The best way to repay that is for us all to continue building and expanding this Blockchain so that when the masses arrive they'll have a great time.
Question for anyone.... I haven't quite figured out how a token created through SMT gets its value. I realise I'm still thinking about value in Fiat terms... but how would a company launching their own SMT give it value?
I do also don't get the complete picture on the SMTs. I do think that the new SMT coin (each different for each SMT) has to be funded in first place with Steem. I did read the white paper but did not find the answer.
The token wont be funded with STEEM but the owners can fund the purchase of STEEM with the token...they require STEEM to purchase bandwidth.
STEEM is paired with each new token for liquidity but it doesnt give it the value. That is up to the users of the token.
Thx for claring this out!
Same way all tokens get their value...based upon usage. If a site is active and have many users, like NY Time (as an example) then it has value. Bob's Bread Making site, while an ardent bunch, probably isnt going to achieve the same value.
Metcalfes Law is in play with tokens....the more that use it, the morevaluable.
Thanks TM... there is still a gap I'm not quite understanding...
If the NY Times releases a token using SMTs... what stops it from purely being a sticker? A cute thing with no value? Does NY Times have to then offer products or services using those tokens? If NY Times has a blog on Steem, and I make a great comment and they award me 5 NYTs... surely they have no value until either someone else wants it, or I can get a product for my NYTs, or they offer to exchange NYTs for cash?
Sorry, I realise I'm being annoying, I'm just not quite sure how it all fits.
The 5 NYTs can be exchanged for STEEM....that is where the liquidity comes in. If you had to wait for a buyer of the NYTs, it wouldnt be liquid.
As for the value, NYT could have an ICO and then have it traded on external exchanges or only STEEMs....either way, there is a price set.
Since NYT (and all tokens) can be exchanged for STEEM, you will technically be able to buy whatever you can with STEEM using those other tokens. It might require a conversion first.
Realize not every token created is going to have value. NYT and HUFFs might but Bobs Bread Making probably wont unless that type of site has a ton of traffic I do not know about.
Ahhhhhh, that's the gap I wasn't getting. I completely forgot that the SMTs would be easily exchanged for Steem... it all makes sense now.
Basically NYT would invest $50,000 USD into Steem... then create and buy their own NYT tokens to give out to their readers, that say, contribute a photo. Their readers could exchange those tokens back to Steem to power themselves up or buy goods and services.... we all better get those Steem shops up and running!
Thank you Taskmaster for taking the time, once again, to explain everything to me. I really, truly appreciate it.
If the planned applications and upgrades aren't figured into the ratings at all we could soon see Steem as the first cryptocurrency to get an A+ rating from Weiss - once SMTs are released!
That's a good point.... I'm sure future plans are included in their ratings to some degree, but you'd expect a successful implementation of the next hardfork would cause a significant adjustment.
Thanks for the post @taskmaster4450. Just yesterday I've been reading news section on Weiss CC rating site. I wouldn't say the content quality is superior there. This rating agency is trying to produce ratings in CC field, its good to have professional rating player doing this. But we all should keep in mind - they have just 3-4 blockchain experts in the team that help them rate the projects. Rating agency itself is good at doing rating stuff, but whole crypto tech field is being covered by just 3-4 experts.
My personal choice is to respect their rating but just as one of many other opinions with weight. This simple thing: "Do your own research" stays true and up to date
Spot on! Personally I’m glad with the rathing that Steem got and it will give some extra exposure to Steem. But honestly I don’t care about the ratings. In my opinion they are just scammers trying to get some cash. They ask about $400 for their ratings and just wanted to be first.
Remember that rating companies are responsible for some major financial crashes!
Absolutely!
Unfortunately, whenever there is interest and multiple options... then someone is going to rate things.
At least Weiss has 4 to 5 Blockchain experts on staff.... they know corporations and publications will want this data, so I'm glad some research is going into it at least.... a lot bigger decisions have been made off much worse information.
I agree. Nobody should take their word as gospel.
But what this post does reveal is the criteria they use.
Anyone is free to accept or reject those 7 criteria as valid or not.
It is one tool....and also something to generate some publicity for STEEM.
That is cool. I never knew about that.
I continue to wonder why Steem isn't more valued than it is. I know lots of people don't like that those few players are hodling so much, but its not like that isn't the case in most assets, traditional or crypto. That should work its way out eventually.
I have never held Bitshares for the same reason I don't think I will hold EOS or Ethereum. I don't think they are meant as currency. Although, if any, EOS for sure.
I think with STEEM it is simply a lack of exposure, Most people do not know about it. This could change with some things like SMTs.
I hold BTS....it was a bit concerning to me but I understand their point. That said, I am bullish on BTS for the reason that @stan has been promoting....there is a good chance that EOS is used to help BTS. EOS, from what I understand, can be applied to any blockchain...it is more like an operating system. I could be mistaken about that though.
Overall, I am uber bullish on STEEM. When it is discovered by the masses, we could see quite a move.
I've been a bit concerned about BTS adoption, right now I just feel like not many people outside of the steem ecosystem are interested in it. It's getting a slight pump right now though, so that's good.
I never got the BCL airdrop either, not sure what I didn't do or did wrong..
EOS and steem I'm set to bullish
I did get that one so I cant tell you...it did go out.
It was a bit concerning but then following @stan like I have been, I realize that Weiss has no idea what he (and others) are up to. They are simply using the criteria they have without looking at what is being laid for the future.
That is why they said the rankings are subject to change as they update them weekly.
Dang, that's annoying I didn't get it, I'll message someone to see why.
True that they probably don't know what's going on behind the scenes. If @stan is still attached I feel pretty good about it, I haven't sold or anything yet. I think the rankings will improve in time, just like crypto itself
Based on that 7 points to evaluate STEEM it's super easy for "us" to have such a good rating.
And considering their first report, we are getting better because our rating is now even closer to an A.