Today, in the top five cryptocurrencies by capitalization, EOS is firmly entrenched. The project immediately became known as the main competitor to ETH. Block.one, which became the founder of the new cryptocurrency, pursued the goal of creating a decentralized platform with low fees and smart contracts. Much of this was a desire for a better version of Ethereum. Up-to-date information about the currency’s exchange rate is available at: https://alligat0r.com/coin-pairs/eos/usdt/info.
The company decided to raise funds for the launch and development of the project with the help of an ICO. It was planned to distribute almost a billion tokens among investors. To be precise, 200 million were put up in the first five days as a single package. Another 700 million was distributed over the entire fundraising period. 100 million tokens were frozen in the account of the company’s developers.
Basic operating principles
The platform worked in test mode for almost a year. During this period, the ICO was held, and the developers allowed investors to evaluate the opportunities, advantages, and disadvantages of the project. The company received a record $4 billion from investors and launched the project with a slight delay of a few days.
EOS is an operating system that gives participants the ability to create applications. Unlike its competitors, EOS can handle hundreds of thousands of transactions per second. ETH processes just thirty at the same time.
Also, the project has a bug fixing feature for poorly working applications and helps with legal issues between participants.
Changes in the value of coins
At the time the cryptocurrency appeared on exchanges, the value of one token was one cent. One month later, the value rose to $1, and two months later, the token was worth $5. EOS entered the list of the twenty largest cryptocurrencies, reaching a market capitalization of $200 million.
In September 2017, the price of one EOS coin dropped to 60 cents. At the same time, other cryptocurrencies rose in price. Experts believe that the reasons for this were the growth of competing coins and a decrease in confidence in the developers of EOS.
There were several reasons for distrust of the project. Under the terms of the ICO, EOS coins were only internal tokens of the platform working in test mode. That is, in the event of the project’s failure, investors would be left with nothing.
Also, the testing period did not allow us to fully evaluate the system’s possibilities, and all prospects existed only “on paper” – the platform was praised on the EOS website.
However, the developers managed to cope with the wave of negativity, by processing it intelligently. Arguments about the impending transition of business networks to blockchain, about the scalability of the project, and the capacity of the network did their job. Investors were given to understand that the number of opportunities to create their own application directly depends on the amount of investment.
Is it worth investing in EOS?
One of the main risks for EOS investors is the large number of competitors looking to enter the big market. The success of each such project reduces the chances of EOS success. Many such projects are available on the aggregator – Alligat0r.
The second risk is the distribution of funds received during the ICO. It will be up to the developers to decide how to spend them. This means that the money is not guaranteed to be spent on project development. The developers do not guarantee anything and are not responsible for the promises and money invested. Therefore, an ICO always entails great risks for investors.