EOS is a perfect exit scam

During the one-year ICO that resulted in 2018, EOS raised a report $ 4.2 billion, making it the most important ICO in historical past. In mixture with a delegated proof-of-stake (DPoS) consensus mechanism with a thousand occasions greater throughput than Ethereum, it advertises itself as an Ethereum killer.

But EOS “talked like a climbing kite, behaved like a vomiting cat” after sitting on a mountain of cash. If you take a look at the stagnating dApp improvement (ghost blockchain) from EOS and the lengthy slide on the CoinMarketCap rankings, it turns into clear that the challenge failed miserably. At the second, her staff has additionally stated a lot much less.

In December 2020, EOS Founder and Chief Technology Officer Dan Larimer stepped down and left with a mountain of cash, including to the unsure way forward for the challenge.

New analysis by forensic monetary evaluation agency Integra FEC has forged new doubts in regards to the profitability of the challenge.

What occurred to EOS?

There are many causes for EOS to decrease the price. First, it has been instructed that the construction of EOS is extra like a distributed database than a cryptographic protocol. That is, the community is not decentralized as claimed.

“The EOS community is not essentially a blockchain-based cryptocurrency community, however a homogeneously distributed database community that allows totally different consumer accounts to speak and work together by way of the database. Distributed community. “

In late 2019, EOS had a congestion drawback that resulted in gradual transaction occasions and excessive charges. This raises the suspicion that the so-called throughput is a thousand occasions greater than that of Ethereum, whereas the quantity of dApps on it is solely a fraction of that of Ethereum.

At the identical time, the SEC claimed it performed an unregistered ICO and fined the corporate behind EOS, Block.one, $ 24 million. Block.one rapidly paid the nice to have the lawsuit settled.

In a nutshell, Block.one appears to be intentionally creating a product to legitimize the large amount of cash raised as an alternative of investing that cash into totally growing the EOS community. In simply a few years when nobody was speaking about EOS, it fell into disuse and the staff behind it efficiently exited the scam with out being recognized to be a scam.

This is mirrored within the price efficiency and reveals the staff’s disinterest within the challenge. In April 2018, EOS hit an all-time excessive of $ 22.71. Although many of the prime cash have come ashore, EOS is at the moment nonetheless diving at $ 6.

Weekly EOS Price Chart | Source: Tradingview

What is Integra FEC accusing EOS of?

Investigations by Integra FEC, led by John Griffin of the University of Texas, point out suspicious transactions within the EOS ICO. It is claimed that these inter-company transactions might be laundered to spice up costs and get buyers concerned.

“Transactions between potentially affiliated companies drove up EOS prices and prompted Fomo investors to buy.”

Griffin expanded the issue by saying it was a manipulation of the price of EOS. The outcomes of the suspicious transactions resulted within the token’s market worth being inflated. This in flip attracts extra individuals to hitch.

Twenty-one accounts have been recognized as concerned within the exercise described by Griffin. He estimates the “recycling fund” at $ 815 million. However, the precise whole quantity may very well be considerably greater as different strategies of price manipulation might have been used.

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Cong Tu Ngang

According to Cryptoslate

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