Flipside Daily Mover: EOS
A coin per day, making big moves
EOS’ Recent Developments a Mixed Bag
September 17, 2019
EOS FCAS climbed 0.77% over the last 3 weeks, driven by a 27-point (2.96%) spike in User Activity. Developer Behavior is down 7-points (-0.76) and Market Maturity fell 2-points (-0.26%). Price is up 14.93% over the same time period.
What is EOS?
EOS is a leading blockchain platform, currently ranked 7th among all cryptocurrencies with a market cap just above $3.8 billion. Its Cayman-based parent company Block.One raised $4 billion in a year-long ICO to launch the network. The platform utilizes a Delegated Proof-of-Stake consensus algorithm, which has drawn criticism for its relative centralization across the 21 delegates who validate transactions on the network. Much like its primary competitor, Ethereum, EOS aims to be scalable and efficient platform supporting the creation of decentralized applications (DApps).
Highs and Lows
The trailing three weeks have been an interesting time for the EOS team, underscored by some beneficial developments for the protocol as well as a pair of troublesome trends. Positive news first emerged on August 25th, with the announcement that crypto custodian BitGo would be supporting EOS with the launch of a multisignature wallet and custody services. As one of the leading custody providers in the space, BitGo support will greatly improve the liquidity and accessibility of the EOS asset.
Shortly thereafter, on September 1st, the only english-speaking business channel in China, ICS Money Talks, ran a segment focused on a major EOS-based gaming DApp extolling the great potential of blockchain-based gaming. This was a major boon for EOS awareness overall, increasing demand for the asset and further establishing the platform as a foundation for DApp development.
This up-streak seemingly came to a halt on September 14th, when a hacker managed to exploit a bug in an EOS-based gambling game, EOSPlay, making off with 30,000 EOS (approximately $110,000). Conflicting reports emerged that the attack had overwhelmed and halted the blockchain, while others denied the full-stop occurred. Ironically enough, the attack had the opposite than expected effect on EOS price as it ballooned more than 8% in the trading hours that followed.
Today, news emerged that LiquidApps, an emerging second layer solution meant to improve the EOS scalability, has only managed to raise $2.8 million in its own year-long ICO. The lack of funds is an indication that ICOs as a vehicle for fundraising are becoming less effective as well as the public’s understanding and demand for Layer 2 solutions on top of EOS is lacking.
🌶️ Hot Take
Navigating a public blockchain project into the uncharted waters of the cryptoverse is a daunting task. Balancing volatile market dynamics, solving development challenges, finding product market fit, and driving user adoption can often feel like spinning plates upon thin-whittled sticks. What makes the journey easier, of course, is capital, and EOS has plenty. Their $4 billion ICO has provided the project with the means to drive development through extensive support for developers and open-source initiatives aimed at fostering a supportive and cohesive community.
As a public blockchain with the ultimate goal of becoming decentralized, EOS has its work cut out for it. The efficiency of the current blockchain relies heavily on the 21 delegates who process transactions, many of whom are concentrated in China. The protocol does select these delegates through on-chain voting, so there are ways to better distribute influences on the network moving forward. Regardless, EOS is here to stay and stands as a premier platform for the creation of decentralized applications.
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