Statement on BridgeCoin

30.01.2019

What many of us suspected have now come to pass. BridgeCoin is officially depreciating the old BCO blockchain. Proof of Work block rewards were depleted a long time ago, meaning there was no longer any incentive for miners to continue to mine as transaction fees were minimal. The PoW block reward mechanism has functioned as a decentralized distribution vehicle, and the CryptoBridge team is now set on closing that chapter for good.

According to the team's statement on 18th of October 2018, only 13 out of 27 million BCO had made it to CryptoBridge where they could be used for staking. 31st of December 2018 was set as a deadline for all BCO tokens to transfer to the BitShares-based CryptoBridge DEX. After that date, the old blockchain was no longer going to be functional and all tokens on the DEX would be converted to BitShares assets instead. BD Ratings finds it a bit strange that the CryptoBridge team had the authority to categorically close down that chain. It was either just empty words and BCO holders just went along, or the team had some type of centralized control over the chain. The first scenario is the most likely one.

Either way, this puts BD Ratings on the spot to decide what to do with BCO. As the tokens lose their native blockchain, they can no longer be valuated and rated in the same way as other protocol tokens like BTC. BD Ratings does not rate utility tokens, nor security tokens, so the time has come to depreciate the rating procedure for BCO as well. BridgeCoin got very low ratings in 2018, and the price has since fallen considerably. Without going deep in to the speculation, it is the opinion of BD Ratings that BridgeCoin tokens will continue their price decline. But this opinion will not be formalized in the form of new ratings. It is enough to conclude that the ratings set on 6th of April 2018 and 1st of October 2018 are both hits and will, going forward, continue to count as hits in the performance statistics.