EOS is making gains, but investors predict it is in trouble

16 Dec, 2018
by Arthur Sillers
EOS is making gains, but investors predict it is in trouble

Investors and crypto insiders have claimed that EOS might be on its last legs, with block producers looking for a way out, and with the shadow of the SEC looming over the project.

Corey Miller, an investment scout for Blocktower, insists that instead of morbidly watching the ‘Bitcoin death spiral,’ crypto should be in fact anxiously awaiting the implosion of EOS as its block producers allegedly start shutting down operations.

Miller notes that in a survey, EOS block producers put $4 as the approximate break-even cost for mining. Given that EOS is trading at less than half of that, it’s almost certain that a huge number of EOS block producers are either shut down, or looking to shut down operations. Miller estimates that 10% of block producers have already shut down, but admits there is no way to certify that figure.

Miller notes that in order to continue, EOS will have to adjust rewards to adequately compensate miners in order to continue, but so far there has been nothing of the sort.

In the meantime, furthermore, Charles Hoskinson of Cardano, told Crypto Briefing https://cryptobriefing.com/charles-hoskinson-sec-eos/ recently that the SEC will likely bring ‘punitive’ measures against Block.One for the way they raised the $4 billion in the original EOS ICO, which Hoskinson claims was conducted with an ‘utter lack of respect’ for investors. Hoskinson points to the way that Block.One created a centralized infrastructure, not without technical problems, which he claims was designed to absolve Block.One from fiduciary responsibility, which he describes as ‘egregious to the core.’ Notably, Cardano is a direct competitor of the EOS’ model, given that they also are creating a decentralized application space.

Nonetheless, the SEC indeed continues its warpath across ICOs and crypto funds, and if EOS is as problematic as Hoskinson mantains, it is not in a good position to defend itself. This also isn’t the first time that EOS has come under fire from the crypto community, with notable claims that EOS is ‘not even a blockchain’ hurting their public reputation, as well as problems with their mainnet launch continuing to be brought up in most discussions of the dApp platform.

Read more: Weiss Ratings calls out Justin Sun: ‘Ethereum and EOS are better than Tron

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