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The basics of crypto trading

EOS

bitcoin
Year 2017
Founders Dan Larimer
Origin -

EOS is one of the 5 major currencies according to a volume of market capitalization. Instant processing of transactions without any fees, utilization of smart contracts – all this makes the coin an effective means for investment and active usage.

The essence of the EOS coin

Nowadays the digital coins’ market already comprises more than 1,5 thousand various coins. Most of them don’t suggest anything qualitatively new and therefore quickly loses popularity among investors. There are especially many such currencies among younger ones. EOS is one of these cryptocurrencies. After emerging in the summer of 2017 it swiftly conquered the market and entered the top 10 of coins with the biggest amount of capitalization (currently it takes the 5th place with the market capitalization of $ 4,9 billion).

Some people confuse EOS with another similar coin, EOS Network (EON). The latter isn’t as popular yet and both it's capitalization and trading price are quite low.

Both investors and analysts are ambiguous about EOS. Some of them compare it with Ethereum concerning its technological effectiveness, forecasts, and prospects, while others refer to the coin negatively and presume it to be a scam.

The software of EOS is based on the completely new blockchain architecture which provides vertical and horizontal scalability. The technology itself allows performing about 1 million operations in only 1 second without any extra pay charged from users.

To put it simply, EOS is a platform which is geared for development of decentralized applications. A high speed of generation of blocks (5 seconds for one block) allows quick verification and executing of transactions – in only ¼ seconds! An operation becomes irreversible in 1 second after it has been carried out.

EOS is one of the cryptocurrencies which have been developed exclusively for investment and not as a means of payment. So, if a user doesn’t intend to invest money on a long-term basis, the question of whether to buy this currency or not becomes irrelevant. The main features of the coin are the following:

Not only businessmen but also developers of non-commercial projects can work on the platform. It increases the number of potential clients. Nowadays EOS is perceived not only as a solid platform which applies smart contracts but also as a payment system capable of taking its own place on the market.

Many people compare EOS with ETH. Their networks have very much in common, but the more recent EOS project processes transactions faster without charging any fees from users as a matter of principle. A number of global payment systems already yield to the EOS platform according to the speed of execution of transactions and scalability.

History of creation

Initially, both the EOS coin and network were presented to the public on June 26th, 2017. On this exact day, the first stage of an ICO was launched. This phase lasted for only 5 days. 200 million coins with a total value of $ 1 billion have been received during it. It took only 5 days to get into the top 5 of cryptocurrencies with the biggest amount of capitalization.

The developers summarized their annual work in June 2018. The results were astounding. The coin has become the most demanded one among the presold coins. In the aforementioned period, the amount of capitalization has increased to $ 4,2 billion. The previous record was held by the TON coin with the growth of annual capitalization during presale by $ 1,7 billion.

Despite a lack of a clear development plan, the creators of the coin were able to collect enormous sums. It’s believed that success owes much to a thought-out advertising campaign. For example, the developers translate the EOS acronym as “Earth Operating System” or “Ethereum on Steroids”.

A significant role in the coin’s success was also played by the popularity of the main developer – Dan Larimer, who has already worked with the blockchain technology earlier. EOS is his third project. His previous works are a decentralized currency exchange called BitShares and a special resource for blogs and social networks named Steemit.

The team of the project is comprised of more than 35 people. Apart from Dan Larimer, there are some other well-known persons there who have proven their competence: Brock Pierce, Brendan Blumer and others. The success would have also been impossible without the block. one software company. It’s still working on improving the platform.

Positive and negative feedback

Despite the rather short selling out period, many users have already been able to assess positive features of the coin:

The disadvantages that worth mentioning are a relative novelty of the coin, uncertain future which isn’t revealed by the developers and impossibility of mining.

Development forecast

EOS isn’t among the top 5 or even the top 10 of the most expensive cryptocurrencies. The maximum price which it was able to reach was $ 21,46 in April 2018. Nevertheless, the coin demonstrates a positive gradual upward trend with some spikes.

Today the exchange rate of the coin is at the level of $ 5,49. Still, EOS takes its place in the top 4 according to the amount of daily capitalization with the daily turnover exceeding $ 375 million.

All the coins have already been issued by now. Their total amount is 1 billion items, while 10 % of them was initially reserved by the developers.

Only in a year, the currency was able to grow 80 times in its value, though just for a short period of time. The coin has an upward forecast at the end of 2018. Analysts predict its growth regardless of the general trends in the market. Their key advice is the following – use EOS for long-term investment of money. Already by 2020, the coin may have increased in price up to $ 50 per unit. The prerequisites for the success of the coin are:

Despite the rapid evolution of the project, some users still think of it skeptically, considering that it’s quite possible the coin will collapse eventually.

How EOS may be applied?

There is no way to get EOS through mining, it also isn’t traded on various exchangers. Those who have already become lucky owners of the coins have made the purchases during the ICO or via cryptocurrency exchanges. It’s impossible to become a participant of the ICO after its closing. The only way left is to buy the coin from individuals or via cryptocurrency exchanges. It’s also being traded on many major platforms like Bitfinex, Binance, and OKEx.

The coin hasn’t been designed as a means of payment. It’s an instrument for a long-term investment. So the question of where to store the currency is considered relevant to users. Ethereum wallets which support ERC-20 tokens can be used for this purpose. It’s possible but still risky to keep funds on the platform even though it has shown itself from a positive side concerning reliability. A hardware wallet can also be applied, but it will cost a substantial sum, so this variant is most suitable for major investors.

Latest news of EOS

The crypto wallet service based in California - Abra - is going to restrict some functionalities for the users from the USA starting from August. The company is forced to implement some system modifications due to regulatory uncertainty in the United States. This information has been shared with users in a company blog post on July 25. Thus, the US users will no longer be able to use a number of cryptocurrencies, with EOS being one of them.

In particular, the platform will migrate its smart contract-based assets to a native hosted wallet solution, blocking everything except for Bitcoin, Ether, Litecoin, and Bitcoin Cash, which will have a direct impact on the US users holding “restricted” cryptocurrencies. Thus, Americans will not be eligible to hold EOS, QTUM, Bitcoin Gold (BTG), OmiseGO (OMG), and Status (SNT).

The new system solution will be applied after August 29, 2019. If there are any remaining balances in restricted assets, they will be automatically converted to BTC after that date.

In June 2019, Weiss Ratings agency was forced to downgrade the EOS cryptocurrency rating because of the major problems of the project with centralization. This was reported on Twitter. Weiss Ratings notes that the event the company held last week in Washington, where the Voice social network was presented, did not give any convincing answers that would help dispel doubts about the centralization of the project.

Later, on June 7, one of the leading players in the EOS system temporarily dropped out of the list of manufacturers of blocks, after about a year of uninterrupted execution of the function assigned to it. Although other members of the network quickly restored his authority, this situation gave rise to new doubts about the viability of the cryptocurrency management model used. In the EOS network, voting for the appointment of 21 block manufacturers, which validate transactions until the next vote, is held every minute. EOS New York was a permanent member of the top 21 for 375.4 days before the event. At the same time, with the exception of EOS New York, nine manufacturers from China were on the list.

This fact did not go unnoticed by community members who called for an end to the manipulation of Chinese corporations, although earlier many of them avoided talking about the situation in the open.

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