EOS and its critics
EOS has been the coin to watch. It has hit the headlines about being a system which can support more efficient operations for “decentralized applications” than existing platforms such as ethereum. However, there are serious critics about EOS, especially from John Oliver talkshow and its really hilarious. But he does point out some truth to it. He rightly point out that EOS as a blockchain platform raised over a billion dollars even though it hasn’t proven any use yet.
” It took facebook 7 years to raise a billion dollars. It took uber 5 years and EOS surpass that in under 9 months.”
He further comment about Brock pierce and his alleged scandals sexual abuse of minors. Shortly after block.one part ways with pierce. Notwithstanding the John Oliver episode is hilarious and has left EOS with a dented reputation. This is the link to it if you have not had the chance to watch.
EOS raised USD4bn but its mainnet launch was delayed and frozen due to system bug.
Investors used 7.12 million ether to buy EOS and this amount to ~USD4bn making it the largest ICO to date. Block.one managed to achieve this fundraising without a live product , meaning it raised this capital on investor confidence alone. With investors putting so much faith in the startup, it is under serious pressure to deliver the technology and returns its backers are looking for. In reality they only have a year to do up the platform and it is still filled with many bugs. Post closure of ICO and its mainnet launch was delayed and was frozen due to system bug.
Promises vs Reality
There are also valid questions about whether is EOS sufficiently decentralized and crosschain compatible as it promise itself to be.
A) Block.one perfected the 4ps of marketing
More than anything else, I think block.one perfected the 4Ps of marketing EOS .
– Promotion – The community development has been really strong. Groups like EOS gravity and aspiring block producers help block.one in its advertising and community development.
-Product: EOS perceived designed product comes at the weakness of its competitor Ethereum as it seeks to address scaleability and cross chain issues. But results are yet to be seen. Dan Larimer’s track record in completing Steemit and Bitshare are always mentioned as the key selling point of EOS product.
-Place: EOS is a the right place at the right time. They raise ICO over the period whereby the crypto market rose almost 5 times at its peak.
-Price: If someone tells u there is a rising star that can possibly overtake ethereum marketcap. Would you purchase this token?. This has been a dream that the aspiring block producers and block.one public relations has been selling to the investor community from day one and the price is only going towards one direction.
B) Investors need to be concerned.
I think there are valid concerns that investors need to be aware
- It’s not sufficiently decentralized as it claims to be. If so it may lead to SEC scrutiny.
- Incentives and rewards are high for block producers and they may possibly collude. There are already floating accusations on collusion.
- High funding raised has lead to the team rushing deadlines which resulted in buggy source code.
- Despite promises, there are no use cases and functioning Dapps working on EOS platforms.
- DPOS System architecture flaw: Putting it clearly, if 11 of these delegated nodes were attacked, EOS network would be maimed
I am not discrediting Dan Larimer and its team but I can conclude Block.one is really good at selling dreams. Until results speak for itself, EOS will always remain as one of the most overhyped and overvalued coin on coinmarketcap.