Why I’m Not Buying EOS… Yet

EOS (EOS) is a highly scalable infrastructure for decentralized applications.

Block.one is the company behind the EOS software development.

One of the chief architects of EOS is Dan Larrimer, the same guy who built the Graphene platform which runs Bitshares and used to run Steem. Both of those projects have been a success from a crypto investing standpoint, so EOS deserves our attention on that fact alone.

EOS is being pitched as an Ethereum killer. It claims it can scale to millions of users using a system called Network Bandwidth Allocation. It already uses DPoS (delegated proof of stake). You can get all the details in the White Paper.

The token situation is a strange one. It’s distributing an EOS token on the Ethereum blockchain. It’s an ERC20 compatible token. Now these are different from the tokens mentioned in the white paper. In the white paper it says tokens will be used on a launched blockchain that adopts the EOS software.

The token sale itself is strange. You can find the details here. The strange part is 70% of the tokens are being distributed evenly into 350 consecutive 23 hour periods. This is supposed to combat the uneven distributions of past token sales.

As of July 3 they’ve already raised $185 million.

The EOS token is already trading on Bitfinex, Kraken, and Liqui and trades at $1.35 right now.

Another strange fact is that the EOS token explicitly has no purpose. It’s stated right in the Token Purchase Agreement.

It’s speculated that it will fuel the applications that will one day run on the EOS network.

So it’s no surprise that even with the hype there are a few out there calling it no more than a Ponzi.

I wouldn't go that far, but I’m passing on EOS for now. I think we’ll see lower prices in the future.

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