Weiss Report On STEEM: All Strengths With One Weakness: BASICALLY STEEM IS THE BEST TOKEN BUY OUT THERE
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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It's a real game changer having a firm like Weiss Ratings publishing objective analysis based on criteria so faithfully linked to the core ethos of crypto, namely, a widely distributed, decentralized means of exchange and storage of wealth. It gives them even more credibility than they already had by being independent and impartial. It's just the kind of professional confirmation that we all need!
Their crypto website is looking quite nice as well. This is going to be a daily read for me! https://weisscryptocurrencyratings.com/
To be honest, I was initially sceptical of the Weiss rankings, as the way they were initially publicised made it seem like they were releasing analysis on crypto to gain an audience for other offerings.
I have since reviewed their methodology, and while it's not perfect, it has a very good chance of picking the long-term winners. That Steem gets such a good grade is very bullish for the long term.
I am the same, sceptical about the company (Weiss) and the whole idea. Mostly for those reasons:
Weiss ranking system was not clear, as even Bitcoin which was around for 9 years, was not ranked No1 coin. Not to mention such projects as Ethereum, Dash, Monero. NEO.
The whole ranking idea is good, but the criterias can be biased. Some of the coins have been around for too short time to compare them one to another.
Some can say, that the best rating system is market capitalisation. But once again, this is not correct, as empty and useless projects can be just pumped up, with small volumes. And market price will be determined higher that the true value of the project.
My personal opinion: the most important are two factors when it comes to cryptos: 1) how viable is the project, if it is needed and what problems solves etc. 2) How the project makes money. Because this determines the growth and demand of the project.
Time will show, if Weiss ratings is a useful tool for evaluations.
It does not matter what they write right now. They understand that 99% of all crypto are scam. As we all do. And this is the best they could do. The most important thing is that somebody started doing it. They are building their brand on cryptos.
Very good points. As you say, time will tell.
I've thought about making a Steem plugin to determining the value of a cryptocurrency. It seems like something this community would be perfect for.
API to show current prices or some quantitative valuation tool?
Love hearing this! Thanks for the post! Upvote / Resteem
Though Weiss Rating is uberbullish, STEEM seems to be struggling due to lack of trader's or investor's interest. STEEM is sold in the market for livings by many bloggers and big-holders are still downsizing. Therefore, supply is downing demand at this moment compared to other cryptos. However, if few institutional buyers come on the board for STEEM, it will rise in demand and correct its position to top 5 or 10. Still few issues has to be solved: how to retain new users since it is quite hard for them to earn anything without any SP. However, @taskmaster4450 other blog put some light on it.
Fix Promoted posts and demand will increase: burn steem (smoke?) for exposure. This is a different model to visibility via upvote bot.
Also, the incoming SMTs are a good reason for investors to buy in big; having a share in a smart-token exchange is a winner if the community around that token is strong.
The only cryptocurrency with no negative points at all.
It is good to know that steem really stand out among other blockchain and because is a decentratised blockchain,it is tend to stand the test of time but my fear is that the instability in the price of steem is discouraging some merchant from accepting it for transactions.
As regards the power been centered in some hands i think everything is making a lot of sense now as many investors are coming in and they are ready to help communities and projects that are really committed in keeping steemit growing
I see that report of Weiss and that's really impressive that they give steem a B- ranking that is actually the highest one among the others and i also agree with you that right now the power is so much centralised and whales are the game changer here so let's see how bright the future of Steemit going to be.😇
Yes it is great but also odd.
What does it take to get an A from that group....
Either way, they have STEEM at the top of the heap so that is a good thing.
Yes that's true because what are they looking for in a cryptocurrency to give a "A" ranking but ya as long they consider steem in a positive side all will be alright.
It really is very exciting.
While all the other fish are growing, particularly dolphins, which is really exciting, there are other avenues to help diminish the power of whales. All the groups, communities and curation trails help give the minnows and redfish a bit more power and a bit more say in what's going on and who is getting paid.
I don't mind the Whales moderating in these early days though... a couple of fraudsters who made a lot of cash convincing people to buy into BitConnect have been downvoted by particular whales which I'm happy with... otherwise they'd basically start again. YouTube has no such policing mechanism, so unfortunately the lowest common denominator tends to do really well on that platform... hopefully Steem can be smarter and a bit more selective.
You bring up a great point...while the system isnt perfect, it is there for a reason.
We can see the good points to it also.
While some might get carried away, others use their power wisely.
There are going to be some growing pains...no system is without them. Over time, we should see some of these issues go away as we see the size of this blockchain grow in numbers.
I honestly see it as extremely motivating... I can't wait until I'm hitting whale numbers so I can influence the type of content I like to see on this platform. If we all work hard enough, the Steem blockchain really can be what we want it to be.
I have to agree that whales seem to be the biggest issue, only because they currently dominate in terms of voting. Once we have more dolphins and orcas we will be sitting pretty.
I also think the value of some articles is way off because of this voting power difference between users. Like some real crap makes bank and a real gem gets nothing. Obviously voting bots throw this off, but currently any user with more SP gets more attention for the sheer fact of having more SP. That's why I think whales should be delegating the majority of their VP unless they have a great use for it. I've only been here for a few months so I may not have the best overview of everything, but that's what I see as the biggest problem.
Yeah, in the long run everything will only improve. So much is yet to come and steem is already doing amazing I would say... It's good that we are seeing some nice distribution to authors and whales slowly losing their SP!