A document sent by Weiss Ratings to our inboxes on Thursday warned investors to steer clear from cryptocurrencies that use the Bitcoin name to get a boost. Juan Villaverde, the cryptocurrency expert at Weiss, considers that EOS is a strong buy, but anything that starts with the word “Bitcoin” is something to be wary about.
Some altcoin enthusiasts out there might be surprised that Weiss also rated DigiByte poorly, despite its stellar performance over the last month. In a post he wrote, he identified an individual who goes by one of two names: Everett Forth and Rhett Creighton. Villaverde called him the “serial coin imitator,” because of his habit of creating new variations of cryptocurrencies that capitalize on the Bitcoin name.
Some of these include ZClassic, Bitcoin Private, and Bitcoin Prime.
“The modus operandi of the serial coin imitator is to copy the code of an existing project, change a few meaningless aspects, re-label it, then promote it as ‘the next big thing’ in crypto. They cash in on the innovations made by others and disguise the fact that their work is just a cheap imitation,” he said.
The list of imitation coins, according to the document we received, also included Bitcoin Diamond and Bitcoin God, both of which didn’t even merit inclusion by Weiss. Villaverde went on to say that Bitcoin Cash is guilty of “intellectual dishonesty.” He reasons that the block size increase to 32 megabytes wasn’t necessary because the coin wasn’t seeing much use in the first place.
“Their real problem is that very few people use this coin to begin with. In fact, our latest data indicates that their network only processes about 20,000 transactions per day. Meaning, the upgrade is not even necessary,” he added.
A few months ago, the company was caught off-guard as investors in Bitcoin were infuriated that it gave the cryptocurrency a C+ rating. Martin Weiss, the rating agency’s founder, said that the cryptocurrency is losing ground to competing altcoins, negatively affecting its ranking despite its high trade volumes and still-enormous market capitalization.
The Bitcoin empire, after all, is being threatened by other cryptos that have outperformed it consistently for the last few months. As infuriated as Bitcoin investors may be, they’re proving Weiss’ point by shifting their investments to alternatives like Ethereum, whose rally has outperformed Bitcoin’s.
This article appeared first on Cryptovest
