Michael Alexander, until recently CEO of Jefferies Group has joined the team of Block.One, the company behind the EOS blockchain. Thus, a high-level expertise from the financial sector may affect one of the most scrutinized and promising blockchain projects.
Alexander is yet another representative of traditional financial industry entering the crypto space after billionaire Mike Novogratz has also announced a partnership with Block.One. Alexander will serve EOS from Hong Kong as member of the company’s executive committee.
The relationship between Block.One and EOS is getting complicated - initially, Block.One only has said it would invest a part of its funds to develop the dApp, setting aside about $1 billion. However, subsequently Block.One announced it would participate in votes, effectively being able to push the selection of block producers.
The main critics against Block.One were that the company released a faulty software after raising $4 billion in Ethereum over more than a year. Additionally, EOS still has no reliable wallet and voting procedure is difficult. Other problems included the issues with the EOS Constitution, as well as criticism on the influence of block producers.
EOS trading prepares for growth?
EOS trading, however, is seeing an extraordinary picture - more than 61% of volumes traded against Tether (USDT), pushing the price to $8.97, up more than 14% in the past week. Binance has seen increased activity, after opening deposits and withdrawals a few days ago. Along with OKEx, the two exchanges are boosting the additional USDT liquidity. Usually EOS is being boosted by Ethereum trades, but lately, the share of USDT has widened from about 20% to the record-high 62.5%.
This also means that EOS trading is, in fact, not boosted by real fiat, but by Tether assets moving away from Bitcoin and into altcoins. EOS is, for now, keeping relatively stable price levels, and has not seen dramatic pumps, but the accumulation of USDT and the equivalent of $1 billion in daily volumes may boost the positions of EOS soon.
EOS market prices for the RAM resource have stabilized at around 0.6 EOS per Kb, which still makes the creation of a new EOS account a non-trivial sum. Dan Larimer, the creator of the EOS code, has commented the issue of inflated RAM prices.
“Due to an unintentional configuration of the Bancor Relay weights on the EOS blockchain, this parameter is set at .05% rather than 50%. This introduces some heavy slippage for buying and selling large quantities and causes more volatility than desired,” wrote Larimer in a recent blog.
The rapid price spikes, with RAM prices doubling overnight and growing up to 20 times in a few days, may have been due to a faulty price setting algorithm. However, Larimer points out that trading RAM will always be based on free market principles.