“Here’s why you shouldn’t touch ’em with a ten-foot pole,” writes Juan M. Villaverde of Weiss Ratings while talking about the four cryptocurrencies that better not be invested into.
4 Cryptocurrencies you better stay away from
Cryptocurrency technology is advancing at a fast pace, no doubt. Greater speed, better governance, and smart contracts among much more innovations are part of this growing space. But with thousands of cryptocurrencies available in the market, as put by Villaverde, “a slew of supposedly “new and innovative” cryptocurrencies that are little more than copycat regurgitations of prior projects,” enters the market.
Weiss Crypto Ratings recently began rating these four cryptos and have given them a grade of “D” (weak) or lower.
Aurora Chain (AOA): D-
Attributing this cryptocurrency to more misinformation and hype than any “real substance,” Villaverde points out a series of red flags. He states the consensus algorithm Aurora “trumpets” about is not a unique combination and that its smart contracts in its white paper seem to have been “lifted straight away from Wikipedia.”
It further adds that there no programmers and developers identified by name, rather the website has only a list of “community managers on social media.” Moreover, no codes are available and the adoption metrics live on Ethereum network has no functionality. Not to forget the fact that it is listed on only one exchange.
Bitcoin diamond (BCD): D
Hyping the coin as “the next big thing” in crypto and “enticing investors to jump in,” BCD just increased its maximum supply and “came up with an algorithm that supposedly prevents big mining companies from developing specialized mining hardware that drives small-time miners out of business.”
Meanwhile, it inherits all the technological weakness of the Bitcoin. With a tiny community of users, few transactions on the network and developer support being virtually non-existent, Weiss Ratings give it a weak grade.
Credits (CS): D
The team has used the MD5 hashing algorithm in their platform design which is “famously vulnerable to security breaches,” even America’s Department of Homeland Security warned of this algorithm. By pointing out its false claims of “groundbreaking new consensus algorithm” and being hyped, Weiss Ratings says, “This is shady at best.”
Mixin (XIN): E-
Suspicion of developers’ LinkedIn profiles being “faked”, about barely a dozen subscribers on Reddit, dApp that’s supposed to connect with the Mixin network doesn’t work, no technical details on how it will be built, and GitHub containaining no reference “we know of to any of the code that the Mixin whitepaper describes,” are the points against this cryptocurrency.