The crypto-rating giant, Weiss Ratings, has been in the news for quite a while now. However, none of its news-making antics over the past few weeks have reflected positively on Weiss Ratings itself. If getting called out for predicting a crypto-surge after the fact wasn’t enough for the ratings agency, Weiss Ratings is in the headlines again after making an astounding claim.
The ratings agency incited quite a reaction after positing that Binance Coin may be the new Bitcoin [BTC]. Weiss made the hypothesis after claiming that the collective cryptocurrency market’s pumps usually coincided with and followed a similar pump in Binance Coin’s price and vice versa. The agency’s full tweet read,
“It seems #BNB is leading the market now – when BNB is up, the market is up – and vice versa. Is BNB the new #BTC? #bitcoin #crypto”
Weiss Ratings’ hypothesis is flawed on many counts. For starters, when compared to other major coins in the coin market, Binance Coin remains a new entry to the cryptocurrency market. Despite the dominance of Binance as a top cryptocurrency exchange, Binance Coin’s market share and daily transaction volumes remain a mere fraction of the king coin’s metrics.
While the king coin holds a market cap of over $97 billion (over 53% of the market share), BNB’s market cap is a mere $3.3 billion. Also, since the crypto-exchange, Binance, handles over 40% of Bitcoin trading volumes, it can also be argued that Binance itself has contributed to Bitcoin’s growth.
There are a few more flaws with the hypothesis. Since BNB remains a new entry to the cryptocurrency realm and given the volatility of the market, it’s unlikely that Weiss Ratings has an adequate sample size or a wider time frame to make such an assumption. Further, given the fact that the crypto-winter loomed over the cryptocurrency market for much of last year, it’s unlikely that Weiss could have tested the “when BNB is up, the market is up” proposition since the market was down for most of the time period.
At press time, Bitcoin, the world’s premier cryptocurrency, was surging by 4.93%. Additionally, major altcoins such as Cardano, Bitcoin Cash and Litecoin were also surging by 9.25%, 5.25% and 3.51%, respectively. Contrary to the collective market movement, however, Binance Coin [BNB] was down by 1.10%.
Further, Binance Coin pumped significantly last week on the back of the DEX announcement. On the other hand, the collective market was trading sideways. Ergo, the hypothesis that the market is up when BNB is up or vice versa is immediately disproven.
Twitterverse did not take kindly to Weiss Ratings’ new hypothesis. @XRPGhostmurdock responded,
“How lame is the social media team for Weiss ratings. Whoever they are they should be fired for putting out juvenile and terrible content.”
This is not the first time Weiss has been trolled for its social media “predictions” and “hypotheses” though. The ratings agency came under fire after claiming that its “model” correctly predicted Bitcoin’s surge in early-April. Weiss was called out for making the claim after the fact.
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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
Crypto News – 25 May – Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
— AMBCrypto (@CryptoAmb) 25 May 2019
Daily Crypto News – May 25
1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.
Read more at https://bit.ly/2VRQwb0
2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.
Read more at https://bit.ly/2W40sTR
3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.
Read more at https://bit.ly/2X6fdlw
4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.
Read more at https://bit.ly/2McaTjE
5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.
Read more at https://bit.ly/2wmk4mJ
6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.
Read more at https://bit.ly/2HUEnNB
7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.
Read more at https://bit.ly/2W64KKj
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