Last summer, the entire cryptocurrency community actively discussed EOS, an innovative project in which many saw Ethereum’s main competitor. They forgot a little about it in autumn, but now EOS is again widely heard. The market capitalization of the coin is growing, the price is also going up, but many traders are still not sure whether to invest in EOS. After all, the reputation of cryptocurrency is very ambiguous. What advantages does EOS cryptocurrency have? Is it worth investing in EOS and what risks do exist for investors? Let’s try to figure it out!
What is EOS cryptocurrency?
The EOS platform was created in the summer of 2017 by Block.one and the main developer, Daniel Larimer, who previously worked on Bit Shares and Stemit.
The main idea of the developers is to create a decentralized platform with high bandwidth, the function of smart contracts and a minimum commission. In essence, Block.one decided to make a new version of Ethereum, only faster and cheaper.
Block.one decided to hold an ICO, during which about a billion tokens will be distributed, to attract investors. The developers immediately announced that 200 million tokens will be issued as a single package in the first 5 days of trading, They will “stretch” 700 million for the entire duration of the ICO, and another 100 million will freeze on their account.
Fundraising began on June 26, 2017 and will continue until June 1, 2018. The developers are confident that in a year potential investors will be able to appreciate all the advantages of EOS.
Instead of the usual mining, the developers offer to “get” coins by becoming a member of the ICO. Consider that the project is deployed on the Ethereum platform, so you can only invest in ethereum.
Trade is conducted in separate periods (windows) with duration of 23 hours. Tokens are distributed depending on the number of participants and the amount of investments.
If this method seems too complicated to you, you can simply translate the broadcast to the project address. You can find it at www.eos.io, in the “GET EOS” section.
Copy the address and enter it in the recipient field, making a payment through Ethereum Wallet. However, you will not be able to select a window for buying tokens in this case, and the commission will be calculated automatically by the system.
Another option is to buy coins on a cryptocurrency exchange. This is much simpler, but unlike ICO, where the value of the token is determined by the amount of investment in each period, here you have to buy coins at the price set by the exchange.
Where to buy EOS cryptocurrency?
Initially, the developers stated that the tokens will get on cryptocurrency exchanges only after the end of ICO. However, the plans have changed, and EOS appeared on the exchanges a couple of months after the start of the project.
It was first accepted by Bitfinex and Bittrex, the well-known cryptocurrency exchanges, which still account for 60% and 20% of the total EOS trades, respectively. Over time, the token appeared on other popular sites Kraken, HitBTC, Exrates, KuCoin and others.
However, the EOS platform uses the ERC 20 standard, which means that, theoretically, coins can be held on any cryptographic card compatible with this format.
How and why did the cost of EOS change?
The price of EOS was only one cent in July 2017, when tokens only appeared on cryptocurrency exchanges. However, due to the targeted promotion and promotion of the project in the media, in a month the cost of the coin rose to $ 1, and after 2 months it reached the $ 5 mark.
The price of EOS dropped to 60 cents in September, when most other cryptocurrencies grew. Experts attribute the sharp depreciation to the active growth of EOS’s closest competitors (primarily Ethereum and NEM) and the growing distrust of the developers.
Experts noticed that all the prospects of EOS exist only in text form – the developers praise them on the pages of their own website. Moreover, it is indicated in the description of the ICO that EOS are only internal tokens of the future platform and have no particular value. That is, in case of failure, depositors will remain with a mountain of useless coins.
Nevertheless, the developers managed to further stimulate interest in their project. Larimer assured that in a short time all large business networks (including banking and social ones) will switch to blockchain. However, it is not able to handle a huge stream of transactions in its current form.
However, EOS with its excellent scalability can easily handle several million transactions per second. Moreover, the network bandwidth will directly depend on the number of coins concentrated at the holder. The more tokens the investor has acquired, the more opportunities he will get to launch his application.
The price of the coin began to rise, and at the time of this writing, it was already $ 14. The market capitalization of EOS approached $ 9 billion, which put cryptocurrency in eighth place in the world ranking.
The most important thing is that developers are not responsible for the promises made to investors. This is directly stated on the ICO website. That is why many experts call EOS a huge bubble created for making money on depositors.
So is it worth investing in EOS?
They can be profitably sold on a cryptocurrency exchange by purchasing tokens through ICO. For example, if you catch a low period, buy EOS for 9 dollars and sell on the exchange for 14 dollars, you can earn 5 dollars with just one coin.
However, analysts predict that in the first half of 2018, the price of EOS will rise to $ 20-30. Therefore, now it makes sense to wait for a corrective fall in the exchange rate, to buy coins at a favorable price and sell them when the exchange rate reaches a peak.
Experts say that if the EOS platform works in full, the cost of tokens will increase dramatically. It is worth holding the coins for at least two years in this case, until the excitement around the project dies down.
The problem is that no one except the developers knows when the full platform will work and whether it will work at all. This will be known only in June, when the ICO ends.
However, experts say that until this time, the popularity of EOS will grow, and 4 months before the completion of ICO, you can make good money on the course races.
If you decide to keep the coins until the end of the ICO, you should be ready to merge the assets at the first suspicion of the failure of the project. Otherwise, you risk to loose your investment.