EOS' 200% Price Pump Catches Traders Off Guard
Since its ICO kicked off in July, EOS has been on a slow decline from $6 to $0.47 over six months. All that changed on Monday when price took a turn to the upside raking in 180% in returns for anyone who had bought within the last seven days.
Few expected the market to turn this quick. With 456 million tokens still left for distribution at a rate of 2 million per until July 2018, some investors were holding out for lower prices. Soldiero55 on r/EOS said:
"Damn...I was looking at making a huge play on EOS at around 0.50 and HODLing. If it ever goes back to that price it's a steal, I can tell you."
Plenty of cries of a ‘pump and dump' followed on the project's community channels. However, looking at the charts, momentum was supported by tens times as much volumes as on typical days. An observer on Reddit noted:
"The volume from the initial run-up perpetuated tons of FOMO buying. Note: regular volume for EOS is ~$8-$12m daily. 7 hours ago volume hit $25m. Right now, 24-hour volume is $75m. Nuts."
The steep rise only cooled off briefly yesterday by sharply selling off to find support at $0.91. It has since quickly bounced back up to $1.13 and seems to be making another attempt at breaking the peak price.
Triggers for the unexpected run included an announcement by co-founder Brock Pierce about a billion dollar war chest backed by VCs to support dapp development on EOS. Soon after, 3 international exchanges hauled in a new set of buyers after listing EOS followed by a revelation by the development team they were four weeks ahead of schedule.
EOS is not due until mid next year when the main blockchain will be deployed.
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