1/ In 2018, $EOS raised $4.2B USD in its ICO β the largest token sale ever!
It promised to build a more scalable and efficient blockchain than Ethereum.
4 years on...What's happened to EOS? π€
It promised to build a more scalable and efficient blockchain than Ethereum.
4 years on...What's happened to EOS? π€
3/ Since the start, EOS has been full of controversy.
First, the SEC fined Block[.]one $24M for failing to register their ICO.
Secondly, investors sued the firm claiming they breached securities laws by making 'misleading' statements about the EOS coin.
First, the SEC fined Block[.]one $24M for failing to register their ICO.
Secondly, investors sued the firm claiming they breached securities laws by making 'misleading' statements about the EOS coin.
4/ Third, a research paper claimed Block[.]one 'pumped' the EOS price and created FOMO amongst investors to buy the ICO token.
They 'recycled' ETH from EOSβs crowdsale wallet to buy more EOS, creating a false sense of demand for the sale.
They 'recycled' ETH from EOSβs crowdsale wallet to buy more EOS, creating a false sense of demand for the sale.
![4/ Third, a research paper claimed Block[.]one 'pumped' the EOS price and created FOMO amongst inves...](https://pbs.twimg.com/media/Fjc4WUWUUAAoFjC.png)
![4/ Third, a research paper claimed Block[.]one 'pumped' the EOS price and created FOMO amongst inves...](https://pbs.twimg.com/media/Fjc4WiTVQAA7jA1.png)
7/ What's more, Block[.]one has failed to support $EOS ecosystem.
B. Blumer promised to invest $1B from ICO revenue (via EOS VC) to grow blockchain & foster startups building apps on it.
But critics claim that funds went to unrelated ventures instead.
B. Blumer promised to invest $1B from ICO revenue (via EOS VC) to grow blockchain & foster startups building apps on it.
But critics claim that funds went to unrelated ventures instead.
8/ In fact, 'EOS token purchase agreement' asserts that Block[.]one can use the money as it pleases.
In May 2021, Block[.]one announced launching an exchange called Bullish, whose funding came in large part from the EOS ICO money.
In May 2021, Block[.]one announced launching an exchange called Bullish, whose funding came in large part from the EOS ICO money.
9/ Even before the launch @Bullish was valued at $9B.
Yet the exchange is built on a PRIVATE EOS blockchain!
Currently only 6 tokens are available to trade with the 24h trading volume standing at $168M USD.
Yet the exchange is built on a PRIVATE EOS blockchain!
Currently only 6 tokens are available to trade with the 24h trading volume standing at $168M USD.
10/ Last month B. Blumer bought 9.3% of crypto bank Silvergate Capital ($SI).
Block[.]one bought an additional 7.5%.
Silvergate is currently under scrutiny due to its relationship with FTX.
Block[.]one bought an additional 7.5%.
Silvergate is currently under scrutiny due to its relationship with FTX.
![10/ Last month B. Blumer bought 9.3% of crypto bank Silvergate Capital ($SI).
Block[.]one bought an...](https://pbs.twimg.com/media/Fjc4XnxUAAEI4xN.jpg)
11/ In 2019, Block[.]one paid to M. Saylorβs MicroStrategy $30M for a domain name for its 'social media platform' - Voice.
B. Blumer told The Block that they spent $150 million to build it.
A year later @VoiceHQ closed down and opened as an NFT marketplace in 2021.
Wen $VOICE?
B. Blumer told The Block that they spent $150 million to build it.
A year later @VoiceHQ closed down and opened as an NFT marketplace in 2021.
Wen $VOICE?
![11/ In 2019, Block[.]one paid to M. Saylorβs MicroStrategy $30M for a domain name for its 'social me...](https://pbs.twimg.com/media/Fjc4YDtUYAA_e3C.jpg)
12/ The former executive said to Wired that the companyβs chairman, Kokuei Yuan, had made it clear from the start:
"Block[.] is a marketing organization selling a token: We need to put up the minimum software necessary and then get out."
"Block[.] is a marketing organization selling a token: We need to put up the minimum software necessary and then get out."
13/ Other $EOS criticism relates to its centralization.
Days after the EOS blockchain released its mainnet, EOS block producers froze a total of 34 accounts.
Wallets were suspected of holding stolen coins, but no explanation was offered, sparking centralization risks.
Days after the EOS blockchain released its mainnet, EOS block producers froze a total of 34 accounts.
Wallets were suspected of holding stolen coins, but no explanation was offered, sparking centralization risks.
14/ EOS uses a delegated proof of stake (DPoS) consensus mechanism of 21 block producers.
This means that token holders can vote for specific delegates who are responsible for maintaining the blockchain.
This means that token holders can vote for specific delegates who are responsible for maintaining the blockchain.
15/ One advantage of a DPoS is that it allows for higher scalability.
Since only a small number of delegates are responsible for producing blocks, the system can process transactions faster than other systems like proof of work.
But DPoS compromises on decentralization.
Since only a small number of delegates are responsible for producing blocks, the system can process transactions faster than other systems like proof of work.
But DPoS compromises on decentralization.
16/ While there are hundreds of registered 'Block Producers', only 21 BPs who receive the most votes are elected.
Binance, OKx and Bitfinex are among these 21 BPs.
You can see live data here: eosauthority.com
Binance, OKx and Bitfinex are among these 21 BPs.
You can see live data here: eosauthority.com
17/ When it comes to 'killing Ethereum', $EOS has a long way to go.
TVL on EOS stands at a mere $82M with only 5 dApps having more than $1M in deposits.
TVL on EOS stands at a mere $82M with only 5 dApps having more than $1M in deposits.
18/ EOS does better in gaming with @UplandMe as No. 1 dApp, with 77K weekly users.
Yet, even in the gaming sector, EOS lags behind WAX blockchain β a fork of EOS.
(@DappRadar data)
Yet, even in the gaming sector, EOS lags behind WAX blockchain β a fork of EOS.
(@DappRadar data)
19/ New repository per protocol data shows that developers have been abandoning the chain.
Note: In the chart below, I didn't include data for Ethereum, Solana, or other blockchains, because EOS line is just flat in comparison.
Note: In the chart below, I didn't include data for Ethereum, Solana, or other blockchains, because EOS line is just flat in comparison.
20/ At the current state, EOS is a failure.
But not all is lost. For example, last month @EOSnFoundation led by @BigBeardSamurai spearheaded a $100M fund to support the $EOS ecosystem.
But not all is lost. For example, last month @EOSnFoundation led by @BigBeardSamurai spearheaded a $100M fund to support the $EOS ecosystem.
21/ EOS community is also launching EOS EVM early next year.
@TrustEvm is supposed to bring high throughput, scalability, security and reliability from EOS, with low transaction costs for users.
@TrustEvm is supposed to bring high throughput, scalability, security and reliability from EOS, with low transaction costs for users.
22/ To sum up, for EOS to succeed the $EOS community cannot expect anything from Block[.]one.
They're on their own.
They're on their own.
23/ What do you think the future holds for $EOS?
Follow me @DefiIgnas for more.
Like/Retweet the first tweet below if you can:
Follow me @DefiIgnas for more.
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