EOS - An Opportunity or a Trap??
What is EOS?
EOS is an open source smart contract platform. Basically, a blockchain based platform for decentralized applications but with scalability far beyond that of Ethereum. Designed to be a decentralized operating system (unlike ethereum designed as a supercomputer) providing users the ability to transact without fees or wait times, communicate, and operate applications instantly on the blockchain. You can read the technical white paper here.
Who is building EOS.IO?
The software is being built by BlockOne, a Cayman Islands exempted company. In case you don't know, the Cayman Islands, a British Oversees Territories consisting of 3 islands, are known as a financial hub and does not have income tax, capital gains tax, or any wealth tax which makes it a great tax heaven. It has flexible company law allowing individuals to form an exempted company where the operations are outside the Cayman Islands (Source).
Then what are EOS Tokens??
EOS tokens are ERC-20 being distributed on the Ethereum blockchain pursuant to the ERC-20 contract. These tokens are pretty much useless unless you are going to use a DAPP on the Ethereum blockchain that requires said tokens. Right now, you can't use them and the only thing you can do is trade them on Kraken or Bitfinex. Many have joined the hype to by and hold EOS tokens in the hopes that their value would rise. While this may be true, it is important to note that EOS is a platform and the tokens are not a cryptocurrency. The ICO was introduced issuing tokens to raise cash for the development of the platform. There will be 1 Billion tokens (900 Million distributed and 100 Million in Block.one's wallet until a later date when the genesis block is initialized) and a possible 5% inflation once the 1 Billionth token is issued. There is no finished product!
Also block.one has mentioned that the tokens are not financial assets (ex. commodities, swaps, or securities), they are not designed for investments or speculative purposes and should not be considered as a type of investment(Source, # 17).
On June 1st 2018, the tokens become NON-TRANSFERABLE untill the EOS platform is launched and 15% of all holders decide to adopt one or more blockchains in order for tokens on selected blockchains to become transferable... This is confusing!
What is the point of EOS.IO??
Block.one is developing this platform and will be available for free for any 3rd party to adopt, modify, and implement. They will not look after it, they will not buy tokens, or come near it. It's simply --> Develop --> Drop --> Walk Away with cash.
Should I purchase the Tokens?
This is up to you. Purchasing the tokens should be mainly to gain access to DAPPs on the EOS.IO platform when it is deployed. If you are a speculator, there is a good chance to make money here! The tokens are being traded and with a rising price due to high demand and "regulated" distribution of tokens, you can make money while Block.one raises millions as revenues during distribution. However, the risk is that the value can drop to $0 and you lose your investment if the project is scrapped. (It could happen, but will it??)
The advantage of carrying EOS tokens is in the future when the platform is deployed by businesses and applications are launched. As a user and a token holder, you can have access to application for free than having to buy them using BTC or ETH which may be much more expensive later on as their prices rise.
What is the current market cap for EOS tokens?
Right now, it's just over $433 Million at a price of $1.83 USD/token. (Source).
Is EOS an Ethereum Killer??
It is very possible but we won't know until it is complete and deployed. Right now, this is just hype. If block.one does complete the project and if someone deploys it we will have to see what sort of DAPPS are developed and deployed on the EOS platform before it can become any sort of threat to Ethereum. Its competitive advantage over Ethereum is that it can be scaled vertically and horizontally and transactions can be confirmed within 1.5 seconds.
It's a tarp.
I am really excited to see what happens to EOS in a year.
It is interesting and I'm keeping an eye on it. Please upvote if you like my content =)
I have upvoted. Please check out my posts also haha.
Done =), Also followed
Followed back
We might see eos take of
And be $400 soon
Who knows?
Yes it is very possible. But if you noticed I mention in the article that the purpose of the tokens is to get acccess to and invest in DAPPs. This wont be possible until the platform is deployed by someone other than block.one and DAPPS deployed. Until then, it's useless and you only have 1 yr of speculation.
Thanks for the info