EOS Slump Continues despite Founder’s Reassurance
The project, once seen as a replacement for older-generation networks, looks set for rough times ahead.
EOS, the once-lauded network for free and fast transactions, is worrying investors and traders, as the asset sees a more rapid capitulation compared to other projects. Following the price drop, founder Dan Larimer moved to reassure the community that he is not abandoning EOS but still indicated that he is working on a new project.
“Despite occasional criticism for being involved with several projects since the advent of Blockchain technology, it is this experience that has led to delivering the most performant, and now most adopted blockchain software: EOSIO. Unlike the previous application specific blockchains of my past, EOSIO is a foundational platform for my future endeavors,” Larimer wrote in a recent blog post.
The EOS price lost another 13% overnight, dropping to $2.45 as of 7:00 UTC on Tuesday, but expectations abound that the downward trend is not over.
https://twitter.com/TheCryptoDog/status/1069794232087437312
EOS managed to stay within a very stable range of around $5.50 while other altcoins were sliding and Bitcoin (BTC) lost positions. The price behavior of EOS has led to suggestions of outright manipulation in the past, including during the times when EOS still held daily auctions.
https://twitter.com/SilmarillionFX/status/1069804811577634817
EOS trading has a large component of the ETH/EOS pair, potentially allowing Ethereum whales to boost the price. However, the Tether (USDT) and BTC markets do not help the position of EOS.
Others believe EOS may be pressured by too many negative comments, and its value may end up bouncing. Despite the price drop, the network seems to be running near-record numbers of transactions - up to 45 million in 24 hours - but there is no clarity on the source of those transactions.
The relative stability of the network and the potential for free transactions has given hope that EOS may be one of the surviving blockchains despite price fluctuations. Still, there are expectations of EOS falling as low as its pre-boom levels of $0.50 in the months ahead.
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