Why you shouldn’t ignore EOS? The cryptocurrency market has been in a bearish mood during 2018. The market was in a bullish phase in the month of December last year and ever since then, it has been cooling off. Even the 4 biggest cryptocurrencies namely Bitcoin, Ethereum, Ripple/XRP as well as Bitcoin Cash have been falling consistently. As a result, investors are actually worried about the cryptocurrencies in which they should invest.
USD / EOS Price Today
At such a time, of course, investors will be surprised to hear about newer cryptocurrencies like EOS. However, it is one of the cryptocurrencies which holds a lot of potential.
Launched in 2017:
EOS was launched in the event Consensus 2017. Block.one is the parent company of this cryptocurrency. It has been selling the tokens for almost one year now. In total, it has raised around $ 4 billion. Rather than taking the conventional ICO approach, it has decided to open a token sale for 1 year. The Chief technology officer of the company is Dan Larimer. He has created two other cryptocurrencies which are worth $ 4 billion each. The year-long ICO of the company will end on June 1, 2018. The total number of tokens which are in circulation currently are 1 billion. Only 100 million tokens are held by the parent company. The unique feature of this cryptocurrency is that even if you’re not using the tokens actively, you can get some kind of the tokens. The development team believes that EOS, has the potential to overtake Ethereum. Ethereum is currently the 2nd most valued cryptocurrency.
Can EOS, overtake Ethereum?
EOS can handle anywhere between 1000 transactions to 6000 transactions each and every second. On the other hand, when you look at the capacity of Ethereum, it can just handle 15 transactions each and every second. EOS does not have any transaction fees. Ethereum, on the other hand, has significant transaction fees. This is the reason why EOS can actually gain a significant amount of traction.
The development team:
The Chief Technology Officer of the cryptocurrency, Dan Larimer has in the past also founded Bitshares which can handle volume which is equivalent to NASDAQ. This clearly proves the fact that there is no dearth of talent in the development team. This is another reason why EOS can actually rise significantly in the future. Thus, instead of ignoring this cryptocurrency, it is a good idea to find out more about it. It can surely increase in the future due to the immense potential which it has due to the above few reasons which we have highlighted. Keywords: Eos price today, eos price prediction 2019, eos news today
Incentives for developers on the EOS blockchain
Block.one, the developer of the EOS platform has deep pockets at the moment and has pledged to invest in its development. This was illustrated earlier this week when they partnered SVK Crypto and revealed a $50 million fund for developers seeking to build on the EOS blockchain ecosystem. A PR by the two said in part that: “It will invest in projects that are building on the EOSIO blockchain platform, with a focus on decentralized applications (DAPPs) for social media, data ownership, data control, technology platforms, supply chains and logistics. This includes established or early-stage companies that have started exploring EOSIO or are building software on the platform” It’s still early days, but pulling developers is one way of rallying the community and a bullish community may just be what it needs to push the prices higher. Of course, this will also work in tandem with a wider positivity around the general crypto community. There are question marks over the platform’s governance systems, especially the 21 block producers who are seen as a potential weak link and point of vulnerability. EOS maintains its dPoS (delegated proof of stake) is the best. That remains to be seen, but if all goes as planned, and then reaching higher price values in June won’t be that difficult.
If EOS manages to navigate free of the red zone and picks up a nice trend in coming days, its price could rally. There’s no telling what may happen next, but certainly gaining by 50% in the next 20 days isn’t beyond one of the most exciting blockchain projects. Watch this coin- $25 in June is very much achievable.
The Top 100 Holders of EOS Own 75%, or $11B Worth
The EOS initial coin offering (ICO) has generated news for a variety of reasons. Not least among them is the distribution of wealth among its token holders. (See also: What Is Wrong With EOS, the Cryptocurrency?) According to a post on the online platform Reddit, the top 100 addresses, which are used to identify holdings for nodes on the cryptocurrency’s blockchain, account for 75% of total distributed coins. At current prices for EOS, that figure translates to approximately $11 billion in monetary terms. The statistic for wealth distribution becomes even more skewed when you consider that the top 10 EOS holders own half of the total coins distributed during the ICO. The largest holder of EOS tokens is the development firm Block.one, which owns approximately 10% (or 100 million) of all distributed tokens. If you remove Block.one’s share of the overall total, then the share of top 10 and 100 holders drops by 10%. Those statistics, however, come with a caveat. During transition of the code from a test environment to mainnet—a production environment where the cryptocurrency’s code goes live—exchanges have banned withdrawal of EOS tokens. Effectively, crypto wallets with EOS tokens are frozen since the day that the ICO ended. It is likely that users will begin transacting and EOS token balances for addresses will change after the mainnet is live.
The Unequal Distribution Is Not News
The unequal distribution of wealth in the cryptocurrency ecosystem is not news. Bitcoin has a similarly skewed circulation. BitcoinPrivacy has estimated that 5,500 addresses, each containing at least $5 million each, account for half of the current stock in the cryptocurrency. (See also: Cryptocurrency Billionaire Rankings: Richest People In Crypto.) In the case of EOS, an unequal distribution of wealth has governance implications. This is because the cryptocurrency uses the delegated Proof of Stake (dPoS) system for governing its ecosystem. The system assigns votes based on stakes of cryptocurrency holdings for each node. This means that the top 10 (or even top 100) token holders can impose their diktat on the EOS ecosystem without any opposition. For a supposedly decentralized monetary instrument developed in response to the centralized nature of the existing finance ecosystem, the wheel has turned a full circle.
Everything You NEED to Know About EOS
The formal release of EOSIO 1.0, shipped by development company Block.one, has come after a year-long ICO. With the ICO Block.one raised an impressive $ 4 billion in total to finance the EOS project. It is by far the largest ICO ever, even bigger than many IPOs on the stock market. Is EOS the Ethereum killer and is it still a good time to invest in the project? This article will hopefully give you more background information to help you make that decision.
EOS is the largest ICO ever to date. Earlier this year, messaging app Telegram raised another $ 1.7 billion through a private placement after which it canceled the ICO. EOS, the project!
With EOS, Block.one hopes they can speed up the adaptation of blockchain technology. EOS is a blockchain-based, decentralized system that enables the development, hosting, and execution of commercial-scale decentralized applications (dApps) on its platform.
EOS aims to be the platform where developers can easily build applications. Although this is already done by Ethereum, EOS wants to distinguish itself based on scalability (many transactions per second) and transaction costs (free). As mentioned, with EOS it becomes possible to build applications on the EOS blockchain. These apps will then become completely decentralized organizations, which can all choose their own path in terms of the project’s purpose. The same formula that has proven to be very successful for Ethereum. – EOS is Designed With Scalability in MindThose who have been active in the crypto world for a while, probably already have read about the current scalability problems multiple times. Especially for Bitcoin (4 transactions per second), it is a big dilemma. Bitcoin already had several hard forks trying to resolve the matter. Perhaps to a lesser extent, but also for Ethereum the scalability issues are currently playing a big role. Why is scalability a problem? Currently, Ethereum has the capacity to perform up to 15 transactions per second. Not enough if crypto wants to become the ‘next big thing’. For comparison: Paypal can handle almost 200 transactions per second and Visa approximately 24.000 transactions per second.
The Internet of Things, however, requires hundreds of thousands of transactions per second. Although Ethereum claims to solve the scalability problems with the update called Plasma, there are projects such as EOS aiming to take over the throne in the meantime. Dan Larimer, the creative mind behind EOS, is a huge believer in Blockchain. Larimer believes everything will go through the blockchain in the future. To make this possible, it requires a huge amount of transactions per second to keep everything running. ‘Facebook requires 50,000+ transactions per second for likes. This is only for likes, not the shares/comments and other things that are possible.’ In order to run all these different applications on a single platform, something clearly had to be done, according to Dan Larimer. In theory, EOS should be able to handle more than one million transactions per second in the future. Sounds promising! – Transaction fees Transaction fees are, next to scalability, often a topic of discussion. Bitcoin believers once used the network’s near-zero fees as a selling point. On December 23, however, a peak of $34 per Bitcoin transaction was reached. Because of this, video game maker Valve stopped accepting bitcoin payments for its Steam platform in December, writing that “it has become untenable to support Bitcoin as a payment option”.
Although the Bitcoin fees have gone down enormously since then, it makes people wonder how we can reach a world-wide adoption of cryptocurrency, if these kinds of fees have to be paid. It is, therefore, promising to see that EOS is ensuring fee-less transactions. Letting users interact without having to pay fees is more user-friendly, and is therefore encouraging real-world use.– Delegated Proof of Stake EOS uses the Delegated Proof-Of-Stake (DPOS) consensus mechanism. DPOS works similarly to Proof-of-Stake (POS), though it involves the approval of the block validator through a voting system. Any person who participates in the EOS blockchain and holds EOS tokens is able to vote for a validator. Due to the fact that there are no “miners” involved, participants in the EOS blockchain do not have to pay transaction fees that go towards the incentivization mechanism needed to keep the blockchain functional. Furthermore, since there are no fees needed for the blockchain to keep functioning, applications that are built on EOS’ blockchain are able to decide whether to offer their services for free or whether to charge their users. The possibility of the ‘freemium’ model is important as it allows developers to be able to build on EOS without the need for any fees. – EOS’ founder: Dan Larimer Although the scalability and transaction fees are unique selling points for EOS, the biggest hype surrounding the project still comes from the founder: Dan Larimer. Larimer is responsible for Bitshares and Steemit and has, therefore, already proven that he can actually perform something and make it successful.
Besides Bitshares and Steemit, Dan Larimer became a very big name in the crypto world because of things he introduced. Larimer is responsible for a few groundbreaking technologies. Among other things, he has introduced “delegated proof of stake” in the blockchain world, which can be seen as a republican form of Proof-of-Stake. The most famous technology he has helped the world, however, is the concept of decentralized autonomous organizations (the concept that Ethereum revolves around and why it ultimately became so big). Dan Larimer can be seen as a true cryptocurrency veteran. This gives the confidence that EOS will be at least as big, but perhaps even bigger than his previous projects Bitshares and Steemit. Things to keep in mind before investing!
– EOS has not proven itself yet When looking at all the plans for EOS it is hard to deny that the project can indeed revolutionize the crypto space. That said, there are still some doubts regarding the entire project. The biggest problem at the moment with the EOS is that the software has been out for just a few days, the Mainnet still needs to be launched.
Due to Block.One’s legal structure, they cannot create a Mainnet. It is up to the community of EOS people around the world to launch several “mainnets” and eventually the community will (mostly) align to one network as being the mainnet. This could take weeks (or months). Everything that has been written above mainly consist out promises from the EOS team that they are convinced they can make it happen. Time will, however, have to show if this is actually the case. Without a solid and an official Mainnet, EOS will be useless. – Dan Larimer’s future involvement The fact that Dan Larimer is one of the leads at the EOS project does not mean that the project will 100% certainly succeed. There are some rumors that Larimer has not been completely honest during his previous projects. Moreover, Larimer left both Steemit and BitShares very sudden. It is therefore advisable that you do your own research before stepping into this crypto. The question is what the price of EOS will do when Larimer suddenly leaves that project as well. – Competition Similar to the fact that EOS is a competitor of Ethereum, Ethereum is also a competitor for EOS.
EOS is operating in a highly competitive space within the blockchain industry as it is competing with big names like Ethereum, NEO, Stratis, and Lisk (just to name a few). It will thus be a long uphill battle for EOS to position itself in a leadership position among competing platforms that already have been around for a while. – What is going to happen with the invested $ 4 billion? As mentioned at the beginning of this article, Block.One raised an impressive $ 4 billion during the year-long ICO. It is, however, yet unclear how Block.One intends to use the money gained through its token sale. Block.One now has a vast war-chest that can immediately be put to use against competitors like Ethereum, but will they also do this? Block.One has made clear that there is no intention of continuing to develop the project over time.
Block.One does, however, intend to allocate over $1 billion to funding companies that seek opportunities to build on top of the EOS system. Although this is already great, it does raise the question what will happen with the remaining $ 3 billion. – Total Circulating Supply Currently, EOS has a total circulating supply of 900 million in the market, with a max supply of 1 billion. This is far more than most blockchain projects. Ethereum, for example, has acirculating supply of 99 million and Bitcoin has 21 million. Investors are afraid this huge supply will suppress the price in the long term. They would rather see a lower supply because if there are too many coins in circulation, the upside potential is limited. No investor wants a price ceiling on their potential returns. Conclusion
EOS clearly has the potential to shake up the crypto market and perhaps even become number #1 in the long term. With Dan Larimer, the EOS team has a big name among them with a proven track record. That said, EOS needs to shake off a number of competitors and get rid of the doubts surrounding the project, to become truly valuable. If this happens, the current price of EOS will for sure be way higher than it currently is, especially if you hodl for another 2-3 years.
EOS Technical Analysis: EOS/USD is heading for some serious technical levels
- EOS/USD is heading towards a major resistance level
- Price action points to a move higher but volumes dont confirm the move
- Market found support at 3.30
EOS/USD on the two-hour chart above is heading to a critical level of 3,800 and beyond that, the psychological 4,000 level lies in wait.
Price action today has been bullish as it has been with most cryptocurrencies but the volume on the Kracken exchange is not supporting the bullish view.
On August 15th price bounced off the key daily support level is 3,300 to move 12% higher to where we are today despite another test of the downside yesterday (21st August).
The Daily chart below is showing 4,417 to be another major resistance zone if indeed the 3,800 manages to break.
On the plus side, there has been a bullish cross in both indicators on the daily chart and the hourly indicators still seem to be in positive territory although the Stochastic is showing signs of exhaustion.
Wikipedia Co-founder fears EOS centralization at the hands of the Chinese
Blockchain protocol EOS’s governance model and centralization have been at the center of controversies, since its inception. From Weiss Ratings lowering EOS’s grade over centralization issues to getting tangled in the alleged reversal of transactions and Dan Larimar’s comments when he “confirmed” that decentralization was not their topmost priority, stating “it isn’t what we’re after” in a YouTube video, the entire EOSIO team has had to face several troubles.
The latest to join the bandwagon and express concerns over the same is Co-founder of Wikipedia, Larry Sanger. He tweeted,
“We cannot continue to build dapps on EOS if the network is de facto centralized in the hands of the Chinese. I’ve been making noise internally at EP about this since I learned about it earlier this summer. Sorry, but it can’t go on much longer, as far as I’m concerned.”
Sanger’s reaction was to the Founder and Managing Partner of Blockchain Capital, Brock Pierce’s recent video in which he said that vote-buying cannot be stopped. “I don’t think there’s any way to eliminate that,” he had said.
In order to tackle this problem, a solution that he proposed was by “adding more value to other block producers, beyond just the top twenty-one.” When asked if the recently unveiled Block.one’s Voice app could be leveraged to tackle the ID issue to reduce the chances of automatic accounts being created to improve the voting system, Pierce said,
“..there’s a lot of Chinese people and there are a lot of Indian people in a world where one person one vote will have the entire network will be Indian and Chinese so I just it’s a reality of numbers right..”
Previously, Brendan Blumer, CEO of Block.one, had proposed a “one token, one vote” system, wherein a single vote has more weight than several votes.
EOS voting system
EOS uses a delegated Proof-of-Stake protocol which enables EOS token holders to vote and elect block producers. These block producers govern EOS and represent the interest of token holders. So, how did the “vote-buying” issue crop up? EOS’s governance model is not as democratic as it seems.
Not all investors who hold EOS tokens vote for Block Producers due to uncertain market conditions. Additionally, many token holders resort to storing tokens on crypto-platforms, shifting the power of voting to exchanges.
EOS Price Analysis: Bears Eyeing Another Break Below $3.30
- EOS price is currently under a lot of pressure and it recently broke $3.600 against the US Dollar.
- The price is consolidating above the $3.350 support, but it remains at a risk of more losses.
- There is a major bearish trend line forming with resistance near $3.600 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could accelerate its decline once it breaks the $3.300 support level in the near term.
EOS price is trading in a major downtrend against the US Dollar and bitcoin. The price could correct higher, but upsides are likely to be capped near $3.600 and $3.800.
EOS Price Analysis
In the past few sessions, there was a downside extension in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. Earlier, EOS price recovered after tagging the $3.300 support level. There was a break above the $3.500 and $3.600 resistance levels. However, the upward move was capped by the $3.800 resistance level (the previous support). Besides, there was no proper close above $3.750 and the 55 simple moving average (4-hours).
As a result, there was a fresh decline below the $3.600 support level. Moreover, the price traded close to the $3.300 support and a swing low is formed near $3.360. It is currently consolidating above the $3.350 support, but it remains at a risk of more losses. An immediate resistance is near $3.550 plus the 50% Fib retracement level of the recent decline from the $3.796 high to $3.360 low.
Moreover, there is a major bearish trend line forming with resistance near $3.600 on the 4-hours chart of the EOS/USD pair. Above the trend line, the next key resistance is near the $3.700 level and the 55 simple moving average (4-hours). It also coincides with the 76.4% Fib retracement level of the recent decline from the $3.796 high to $3.360 low.
The main resistance is near the $3.800 level (the previous support). Therefore, a successful close above the $3.800 level and the 55 SMA is needed for a strong upward move in the near term. On the downside, the key support is near the $3.350 and $3.300 levels. If there is a clear break below $3.300, the price could accelerate towards the $3.000 support.
Looking at the chart, EOS price is clearly facing a lot of hurdles near $3.600, $3.700 and $3.800. Therefore, there are high chances of more downsides below the $3.300 support.
Hourly MACD – The MACD for EOS/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently near the 40 level, with no major recovery sign.
Major Support Levels – $3.300 and $3.000.
Major Resistance Levels – $3.600 and $3.800.