Here's what caused the EOS crash last night
Some of you may have noticed that the EOS price dropped a fair bit yesterday and then remained mostly flat.
You're probably wondering if this is a problem? Have people already given up on EOS?
No.
Despite what some people are saying the hype around EOS is still very much alive, especially in China.
There are two main reasons EOS had a bad night:
1. Yunbi Crash:
Right now 85% of EOS is traded at one exchange in China. Last night that exchange crashed for multiple hours and so there was no trading there:
Since these users couldn't buy, sell or even access their EOS the price dramatically dropped on other exchanges. Then when Chinese users were able to get back in to the exchange they were in a panic because they saw the western markets crashing and they began to sell off their EOS.
2. MetaMask Problems
Unlike other ICOs, the EOS ICO is configured as a DAPP that requires a system like MIST or MetaMask in order to access it. While you can buy tokens through a classic ERC-20 compatible wallet those instructions aren't readily provided and can be confusing for most users, so the EOS.io site encourages you to use MetaMask.
The issue is that if you used MetaMask yesterday you likely saw this:
MetaMask relies on a limited number of connections to the blockchain in order to access DAPPS via the Chrome browser without running a full node on your system. Yesterday (and still today) they were hit with so much traffic that most users couldn't connect to DAPPs through MetaMask.
This meant that very few people were able to contribute to yesterday's stage of the ICO. While Sunday's stage had over 44,274 ETH contributed resulting in a price of roughly $6.17, yesterday only 26,000 ETH was able to get through resulting in 2M EOS being distributed at a price of $3.63 each and driving back down the price.
What's Next?
With Yunbi trading again we're going to see a lot more volume there and so they will continue to dictate the price of EOS on other markets for now. But, until problems with MetaMask are fixed or it is easier to contribute to the ICO without MetaMask we're going to see the price stay fairly level.
That's what happens when you place and investment vehicle into a gambling den. Them Chinese will chew it dry and spit it out.
It's primarily an issue of consolidation right now.
Given so many users in China are arbitraging other markets if 95% of their holdings are in Yunbi and 5% are in another market, if Yunbi crashes they can safely sell off 5% below market value to protect their over all investment. This just leads to cascading crashes.
Basically speculative trading with assets that they do not own or have...aka gambling.
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STOPI plan to participate using my ETH wallet on ledger nano s. I have not been able to confirm compatibility. is anyone aware of any issues with this? any special instructions avaialable? thanks in advance!
If you have the Ethereum app on the Ledger nano S:
You need to register your Ether address in order to get a EOS public and private key before June 2018.
Great post ... much needed info .... I bought in at €5 and have seen a 50% loss so far ...and it's still going down ... I've just accepted that this was a long term play and if the technology lives up to it's promise my investment will com good ... once again thanks !
Absolutely - I think the long ICO will cause some investment fatigue, but if they deliver the product and get the full EOS blockchain operational it will be a major win.
what price do you see EOS going ? While people made money on EOS like 300 %, I think I have lost money by my dumb trading skills...
What do you think in next 1 week to 1 month to 1 year with EOS ? I have bought back 2000 coins, and am ignorning every other currency.
I'm not sure - it depends on the platform. I think ICO mania has caused some people to over invest so I see the value likely getting a lot lower before it rises again now that we are a few days in. Long term do I think it could have the same market cap as Ether? Sure. That would put it at $25 - $35 per token.
But, that's only if the EOS platform is launched and the blockchain is formed successfully.
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STOPThank you @adamscochran for joining the Steemit community. You're input is truly invaluable.
This crowdsale model is so crazy with exchanges being out there. I'm tempted to get more in the crowdsale periods just to sell on the exchange. I'd keep my holdings from the first period long term. What has your strategy been, @adamscochran?
The only reason one would buy at the crowdsale is if it's cheaper than on the exchange and that is a rare occasion. The crowdasale is more than ofter, more expensive.
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STOP