Time to Exchange | Will this week produces a more bullish outlook?
Welcome to the premier edition of “Time to Exchange”, a weekly publication of TPExchange that brings you the hottest market analysis and news from around the EOSIO ecosystem and beyond. This week’s article will cover the massive sell-off in the cryptocurrency and equity markets, EOS mainnet inflation reduced to 1%, EOS VC Investments, DISKs, EOSIO challenge and Block.one statement on the state of the EOS network.
Bitcoin and the entire crypto market saw a massive sell-off last week dashing the hopes of the bulls. The price of bitcoin fell, losing $1,400, from almost $10,000 to $8,600. Ethereum’s downtrend is happening after a rally up to $275 which was followed by the price plummeting to lows of $210. EOS price also saw a massive drop in price from $4.23 to $3.50. This market dump is normal for the crypto market which is more volatile than traditional markets and characterized by boom and busts cycles.
However, there was also a massive sell-off in the price of traditional assets. The stock market took a downturn last week with the Dow and S&P 500 losing 12% and 11% respectively, making their worse performance since the 2008 financial crisis. Oil prices have been taking a dive downwards and safe-haven assets like gold and silver are also dumping. We can trace these negative market turnouts to the Coronavirus outbreak which is troubling China’s economy and the economy of the rest of the world.
Will the cryptocurrency market continue in this downturn or will this week produce a more bullish outlook? We can only wait and see.
EOS inflation was reduced from 5% to 1%
Last week, EOS inflation was reduced from 5% to 1%. This is a positive and expected change that was supported by most of the EOS community. Before the change, the inflation rate was 5%. 1% was for block producers while the other 4% was earmarked for a worker proposal system. This worker proposal fund has been effectively destroyed. This fund was intended for the development and promotion of the EOS public network but most of the community expressed fears that it would be abused by whales. Reduced inflation is good for token holders as too much inflation puts more EOS in the market which negatively influences the price. By reducing the inflation, EOS block producers signal to the community that they are acting in the best interest of the EOS token holders. All the accumulated savings from the 4% which were in “eosiosavings” (about 34m EOS or $100m) has also been burned.
DISK is a new resource on EOSIO for storing data in the long term and in solid-state without having to use RAM. This would allow for improved performance and increased storage capacity. However, DISK has not been officially released yet but maybe released and seen in future upgrades. Blockchain developer, Corvin Meyer, discovered it while digging through the EOSIO GitHub repository last week.
EOSIO challenge is aimed at creating an EOSIO smart contract capable of invoking Solidity Smart Contracts in a virtual Ethereum-like environment. Block.one announced this $200,000 challenge on the 3rd of February 2020 on EOSIO’s DevPost. So far, the only public submission to this challenge is from Syed Jafri, a blockchain CTO of EOS Cafe block and member of BOS Executive Team. He made public a GitHub code and wrote a YouTube tutorial titled “eosio.evm: Ethereum Virtual Machine on EOSIO — Comprehensive Tutorial”.
B1 Statement on the State of EOS
Block.one released a statement last week in response to a popular crypto wallet and exchange who suspended EOS deposits and withdrawals and blamed it on the EOS network stating that the EOS network had degraded performance. The issues experienced were not because of the state of the EOS network but because of the inability of this exchange to keep up with the performance of the EOS network.
According to Block.one’s statement, “Descriptions of a “degraded” EOS Network performance are not accurate. The EOS Network transfers and confirmation times are operating as normal.”Block.one would be working with this wallet to help them improve their performance.
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Written by tojukaka
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