Should EOS Holders be Selling?
As Friday ticks on, EOS is continuing to sink by over 11%. The cryptocurrency market as a whole has been taking a bit of a slide but this move on EOS is still ominous. The EOS digital asset is starting to look shaky – and some have predicted network launch troubles would depress the price toward $5.
As stated above, the whole market experienced wider drops between 5 and 10% among major currencies with the main sufferers apart from EOS being Bitcoin Cash, Ontology, Ethereum and Cardano which all saw drops of between 6 and 12% with ONT dropping by over 12% to the $5.80 level. Incidentally, eToro chose Friday to return EOS to trading on its platform after suspending it as from June 2 when the EOS price had been around $12.50.
There has been a string of issues since the mainnet launch and it has showed EOS to be vulnerable.
This slide comes after earlier in the week, seven accounts in the EOS blockchain were frozen. Essentially, as the migration from the ethereum blockchain to EOS’s own blockchain took place, EOS holders had to register their new EOS wallet addresses. In the mayhem during the transition, some users were duped by fraudsters into handing over their private keys.
The network is experiencing serious doubts if it can handle transactions securely. EOS remains attractive for the upcoming airdrops of promising projects, but time will tell if distributed apps on EOS will work and find users. Yet, EOS transactions on Blocktivity show the network is extremely active, rising to the top 5 networks in terms of weekly transactions.
A side note, and a vote of confidence for EOS, is that it seems to be favored by China and its Ministry of Industry and Information Technology. “It has outstanding technical advantages in transaction confirmation efficiency, network throughput, and transaction costs,” CCID said in its report. “Although there were some accidents such as short-term delays, it is highly active in technological innovation and the software is updated quickly, making it most closely-watched new public chains.”