EOS Raised $4 Billion and Has Declined More Than 30% Since
Block.one was able to raise $4 billion by selling its crypto, EOS, between June 2017 and 2018. Over a year after, the token lost more than 30 percent of its value because of a huge price fall as well as a shortage of authentic users.
At the moment, the EOS/USD exchange rate is at almost $2.79 following a peak at $23.02 in April 2018. As with other cryptos, EOS also experienced huge dumping that happened during the 2018 “crypto winter.” However, several smaller assets could not revive a powerful bullish price rally.
When this year started, EOS was still within a remarkable downtrend. It is negative for such a platform as it was praised for being a critical player in the new blockchain sector. According to WSJ in 2018, numerous developers and investors were beguiled by projects such as EOS in building decentralized applications (or dapps), but yet to attract users.
A similar factor is affecting the EOS buying sentiment. The purchase of tokens is necessary for developers to build dapps upon its blockchain. However, the dearth of users leads to the failure of those products, thereby hurting the cryptocurrency demand.
The fall in demand was not anticipated by the individuals who bought the first batches of EOS. When the cryptocurrency boom happened, numerous users entered the market following reports that showed an increase in dapp transactions on the EOS blockchain.
The report by AnChain.AI in the middle of last year noted that bot activity was 75 percent of the reported transactions, while a more recent report showed that TRON is the most popular ecosystem for dApp users. Moreover, the claims that EOS blockchain is still pro-censorship and centralized also made the investors of EOS suffer.
These led to an overhyped, underperforming startup that could not serve users. After its initial coin offering, the EOS market capitalization has declined by almost 37%.
As time passes, the crypto domain will know the possibility of platforms such as EOS to attract more users ahead. However, at the moment, it is still a remarkable challenge for the blockchain and could keep hindering its price action.
Featured image courtesy of Shutterstock. Source: Cryptopress.