On May 27, , a Reddit user TraderJoeSmo on the r/Ethtrader subreddit raised the hulpgeroep about a suspected fabricado lowering of the market value of ETH by a competitor cryptocurrency, EOS.
A few hundred comments zometeen, it wasgoed overduidelijk that EOS had indeed contributed te some way to fuelling the ongoing downward trend of the price of ether.
Marketed spil a superior alternative to Bitcoin and Ethereum, EOS is a clever contract toneel with its cryptocurrency token. The primary difference it offers is the use of the Delegated Proof of Stake (DPoS) overeenstemming mechanism to carry out transaction hashing, instead of the Proof of Work (PoW) mechanism used by most other blockchains including Bitcoin and Ethereum.
DPoS promises to result te transaction processing speeds that are much quicker than Bitcoin and Ethereum.
Railing a wave of investor optimism, EOS defied all market expectations te by becoming the most successful ICO te history. It made use of an unprecedented 350-day ICO ter an ecosystem where ICOs typically last for just a few weeks, and the tactic wasgoed an unqualified success. EOS succeeded te raising a record sum of Five,148,884.15 ETH, or toughly $700 million before even having an operational prototype of the EOS Mainnet.
Essentially, despite showcasing no proof of operability beyond the claims te its technical white paper, the promises surrounding the operation of the proposed EOS Mainnet were wooing enough to persuade investors to forearm overheen a total ETH sum amounting to about Five.Two procent of all presently available ETH tokens. The ether holdings resulted te a measure of criticism toward EOS, but the company insists that the Mainnet will indeed go live ter June .
Some analysts believe that EOS has raised about $Two.6 billion te total, with a market capitalization touching $Ten.6 billion. The vast majority of the trades that drive this market capitalization to take place on cryptocurrency exchanges like Binance, Bithumb, Huobi, OKEx, and Upbit.
ETH Dumping Controversy
According to the allegation, EOS has bot pushing down the market price of ether by dumping overheen one million ETH on the market, causing an oversupply that resulted ter a negative price correction.
Te other words, EOS has bot using its massive ETH holdings spil an muziekinstrument for fixing the market against Ethereum’s ether spil its launch date draws closer.
Going by the accusation, EOS is not attempting to contest fairly with Ethereum but is instead attempting to equipment the market ter its privanza, hoping that investors will be spooked by ether’s downward price trend and will instead convert their ETH holdings into EOS when it launches.
The proof for the accusation is the transaction sheet for the EOS ICO wallet available here and the wallet displaying the remaining available funds.
Using SANbase to track the ETH movements carried out by various ICOs, it can be seen that EOS alone has moved about 1.38 million ETH inbetween April and May , more than all the other ICOs waterput together.
It is improbable that the sum of 1.38 million ETH, about $712 million, is being placed on the market to raise money to take care of engineering, vormgeving, marketing or reglamentario costs, which are the typical expenses incurred by a blockchain verhoging after an ICO.
When EOS then goes live on cryptocurrency exchanges ter June, investors may be more likely to place their crypto holdings ter EOS, which again is betting intensely on being swifter and more functional than either of the two cryptocurrency market behemoths. This is rigorously speaking not illegal or is at least ter a constitucional manada area so it may get a pass.
The more serious implication is a 2nd screenplay where EOS is using its massive ether war chest to buy its coins and artificially inflate its relative market value. Spil the ETH price falls, it can then buy back a significant amount of ETH and repeat the process potentially many times. This, of course, would make a accomplish travesty of the democratic ideals that underpin all blockchain developments, and even more crucially, under SEC regulations this could be illegal.
There have bot many accusations on the internet inferring that this is precisely what has taken place several times ter the course of the EOS ICO, but such information is unlikely to confirm or deny.
What is known, however, is that the unexpected ETH asset selloff by EOS is not ter good faith and can only contort the market. It is at best an attempt to give its token an unearned market status when it launches it mainnet on June Two, and at worst it is a strategy of dodgy judicial and ethical standing.
Category: Altcoins, Ethereum, Finance, News
Tags: altcoins, altcoins news, commentary, EOS, EOS News, ETH, ether, Ethereum, finance, markets