EOS Experiences a 30% Decline after A $4B Fundraiser in 2018

News / 07.01.2020

By selling its cryptos, EOS raised approximately $4 billion within one year from June 2017 through 2018. A year after Block.One took this action, the token faced a 30% drop in its value. Influences of this factor came about due to the decline in EOS’s price and its genuine users. The current price of the EOS/USD pair is about $2.79. EOS suffered the same fate of massive dumping as many cryptocurrencies during the significant event in 2018, termed “crypto winter.” 

Current Analysis of EOS

At the beginning of 2020, EOS’s value was still deteriorating drastically. It presented negative reviews and impacts to the users since many considered it a valuable asset playing a crucial part in the still young blockchain technology. A WSJ review in 2018 showed the captivation of numerous developers and investors to EOS and similar projects in creating decentralized applications (dapps); however, the new invention was yet to garner a large following. 

The token purchase is essential in the creation of dapps on its blockchain. Regardless of its importance, the shortfall in users affects the crypto market negatively. Initial buyers of the token did not consider anticipations of the fall in demand. Following reports by the AnChain.AI last year, about 75% of transactions were bot activities. 

Based on this realization, TRON is the most preferable concerning the decentralized applications users. Although due to the centralized and pre-censorship nature of the EOS blockchain, its investors suffered. The results of this were related to its mediocre performance that was opposite to how it was advertised. There has been a 37% decline in the EOS market since its initial coin offering. The price hindrances presented result from the inadequate users in the network, which can be considered a crucial challenge. 

The EOS Token

EOS is a utility token, a cryptocurrency primarily created above or on top of an initial Blockchain; however, it does not utilize currency usage. Its release was in 2018 following famous contests between major digital currencies, including Ethereum and Bitcoin. This factor put its basis as a crypto contender for these popular cryptocurrencies. 

The comparison to cryptos like Bitcoin is presented in the fact that it is a token facilitating ease and direct access to the EOS.IO blockchain, functioning to execute decentralized applications (dapps).

Holds a degree in BSc. Nursing from the University of Cape Coast, Ghana yet an addict to the blockchain technology and the cryptosphere. He combines the promotion of crypto projects and also the making of professional contents all to get innovative projects to the real world. He is a passionate Community manager and a Marketing Advisor for blockchain startups.