Is EOS a Scam or a Fraud? 5 Points of Contention


EOS is an desirous blockchain plan described as an Ethereum killer. EOS describes itself as a height for decentralized applications and intelligent contracts. It is clear from the white paper EOS is going after Ethereum’s marketplace share. With a million sell per second, 0 fees for sell and a substituted explanation of interest governance model, EOS is a genuine hazard to Ethereum.

But skeptics and vicious observers have lifted current concerns about the plan from an investment perspective. EOS’ atypical proceed to the ongoing ICO token sale has investors worried. Some have outrightly combined it off as a scam.

These critical allegations stirred us to take a closer at because EOS’ excellent imitation is lifting alarms. We found 5 points of contention.

The Token supply is too much

EOS is distributing 1 billion tokens into the market, distant more than most blockchain projects. Ethereum, for example, has 93 million, Bitcoin has 21 million and Filecoin 200 million tokens.

Investors are dissapoint this outrageous supply will conceal the cost of each token in the long term. They would rather see a reduce supply of tokens. If there are too many tokens in circulation, the upside intensity is limited.

No financier wants a cost roof on their intensity returns.

EOS’ placement indication is a year-long token supply

EOS’ token sale was intentionally scheduled for a whole year from Jun 26, 2017, to Jun 18, 2018. Every day, 2 million EOS tokens strike the marketplace and enter circulation. This uninformed supply comes in daily and adds to the volume already in circulation. A sum of 700,000,000 is available for distribution. This drawn-out token sale has drawn annoy from some early investors.

Investors feel this dampens the sell price. The ongoing upsurge of new tokens suppresses the cost of EOS on exchanges. This token indication is off-putting for intensity investors who are now heedful of shopping EOS at this early stage.  14 million tokens per week is a lot to catch generally when there is not enough direct to catch supply.

It is, therefore, no warn that the cost of EOS has been in decrease since the launch of the token sale. Price has forsaken from a high of $6 to a low $0.6. Potential investors are on the sidelines available the last stages of the token distribution.

EOS tokens have no application and offer no purpose

The group subsidy has specifically settled the EOS tokens are invalid and have no utility. The FAQ page warns investors not to design any earnings or value from EOS tokens. There is little left for investors to hang on to when the terms are spelled out.

“The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, demonstrate or implied, including, but limitation, any uses, purpose, attributes, functionalities or facilities on the EOS Platform.”

This open acknowledgment is puzzling, heading many to counsel on the implications opposite threads, forums and criticism sections. How does EOS design to attract collateral if the guarantee is a invalid token?

At slightest with most ICOs, they tell you the purpose of the token on the platform. The proceed by EOS is a whole new turn of trolling!

All Proceeds from EOS are income for a private company

The EOS FAQ page blatantly states

“Proceeds from the EOS Token placement will be the income of is a private association purebred in the Cayman islands. It is also the association obliged for building the EOS software. has solitary option on how to spend the proceeds. As a private company, it is not theme to any inspection on how the income lifted will be used.

Already, the association has lifted tighten to $300 million in income even before the ICO is over. In further to deduction from the token sale, is entitled to 100 million tokens or 10% of the sum token supply. So not only does the association bag the deduction of the ICO, but they also get to keep a poignant interest of the sum tokens.

You can see because investors are doubtful of EOS when they can’t even be worried to cover up their dodginess. 

Suspicious Price inconsistency between ICO tokens and sell prices

The placement indication selected for EOS tokens has led to cost inconsistency between the tokens available from the ICO and those trade on exchanges. Unlike most other ICOs, EOS tokens were made available for trade on exchanges from day 1. Typically, ICOs hibernate as shortly as the token sale is over and only list tokens weeks later.

Listing EOS on exchanges such as Kraken, Bitfinex, and Chinese exchanges, has combined arbitrage opportunities. Unknown buyers collect up inexpensive coins from the ICO and sell them on exchanges at aloft prices. Consequently, this continued transfer activity suppresses prices on exchanges.

Rumours have flush suggesting retard one or one of the high-profile investors are obliged for the large sells offs exchanges. Investors aren’t too pleased.

Planned Audit to Reassure Investors

While it is hard to determine the law to these claims, it tarnishes the repute of the altogether project. Block one has not come out strictly denied or reliable the claims.

According to Brendan Blumer, CEO, an central review will take place at the end of the token sale  to assure token holders the EOS placement proviso was transparent. Brendan Blumer has said 

“We are operative as fast as we can to finalise things with an auditing organisation that is in line with scale of this project; we are in modernized contention with mixed firms. This is an beginning we am overseeing daily along with our CFO.”

Is EOS is a scam?

These ban points brought up by investors, critics and skeptics are creation rounds online. They paint a bad design of the altogether project. However, only time will tell. EOS needs to broach a product to lessen financier fears and win the public’s confidence. But until the token sale ends, and the EOS blockchain is live, these doubts will continue to dawdle in the minds of investors.

Article source: