In the period between June 2017 and 2018, Block.one raised $4 billion via the sales of its native cryptocurrency, EOS. More than a year later, the token associated with the Cayman Islands-based startup has lost over 30 percent of its value due to massive price declines and a lack of authentic users.
The EOS-to-dollar exchange rate currently sits at approx $2.79 after peaking at $23.02 in April 2018. Like in the case of every other cryptocurrency, EOS too became a victim of massive dumping that occurred during the 2018’s so-called crypto winter. But unlike the benchmark cryptocurrency bitcoin, many smaller assets failed to revive a strong bullish price rally.Low Buying Sentiment for EOS
Entering 2020, EOS remains inside a strong downtrend. It is specifically bad for a platform that was hailed as a crucial player in the emerging blockchain sector. As WSJ pointed back in 2018, projects like , but they haven’t been able to attract users.
As it turned out, bot activity contributed to 75 percent of those reported transactions, reported AnChain.AI, an AI-powered blockchain ecosystem security company, in June of 2019. EOS investors also suffered because of claims that the EOS blockchain remains pro-censorship and centralized.
Vaporware
The result of all this is an overhyped, underperforming startup unable to accommodate users. Ever since its initial coin offering, the EOS market cap has slipped about 37 percent from its opening day valuation.
“Only 33% of tokens that raised at least $50mn trade at a market cap greater than their ICO proceeds,” he tweeted on Tuesday. “The tokens that had less public awareness seemed to have printed massive ROIs relative to their ICO sale price but are now down +95% from those prices. IOTA is one that comes to my mind.”Time will tell as to whether or not platforms like EOS will be able to attract more users in the future, but presently it remains a significant problem for the blockchain that is likely to continue hampering its price action.
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