CONSPIRACY THEORY/FACT?: Is the EOS Team Recycling Profits???
By no means am I saying this is happening, and I am not trying to spread FUD, rumors are circulating. You be the Judge!
It's been rumored and circulating around the net that EOS is possibily funneling some of the profits from the Initial Coin Offering to prop-up the price of the token
This piece of code below was the first tell-tell sign:
So in theory EOS could push the price as high as they like, by simply funneling back ETH to buy EOS on exchanges. This in turn ensures that people can comfortably jump in on current funding periods at higher prices. If they use ETH to provide buy support for EOS, and someone dumps into it, then they will be indirectly recycling ETH back into the crowdsale contract.
Thoughts/Feedback
- Do you think they are doing this?
- If so, how long can they sustain? (They only have a year to go - lol)
- Is there anything unethical about this practice to you?
I believe this was brought up in the Telegram channel a couple of times. Founders / block.one have promised not to buy EOS tokens during the ICO. However, they are free to take ETH and do with them what they want (other than buying EOS tokens).
See relevant parts of the EOS FAQ:
"The EOS Token distribution smart contract does not permit block.one to trade or transfer the Founders Tokens during the EOS Token distribution period."
"As a private company, proceeds of the EOS Token distribution will be utilized by block.one in its sole discretion"
"26. Will block.one be contributing to the EOS Token distribution?
No, during the entire EOS Token distribution period, block.one will not do any of the following:
block.one will not purchase EOS Tokens by any means;
block.one will not pay any dividends to its shareholders; and
block.one will not perform any share buybacks.
block.one intends to engage an independent third party auditor who will release an independent audit report providing further assurances that block.one has not purchased EOS Tokens during the EOS Token distribution period or traded EOS Tokens (including using proceeds from the EOS Token distribution for these purposes). This report will be made available to the public on the eos.io website"
I do not worry about this. For those that worry, why run the risk of ruining reputation right now if the mother load was already received by block.one in round 0?
Good point!
Could it not be possible to analyze Ethereum blockchain transactions from the funding addresss an beyond in order to prove EOS team is honest with investors?
Yeah and what is being mentioned around the net is that they are consistently moving ETH funds over to Bitfinex. Though I do have to caution that I havent looked myself.
I thought this was something that could happen. That could explain why there was about 500 eth difference between ethscan and eosscan in period #1.
yeah there definitely are some signs that could make it somewhat true, but the team evidently has stated that they will not & cannot buy back wtih founder's tokens.
yeah, every post where people discuss something bad about eos gets downvoted to low ratings xD I had to follow up on this post to see if u had responded, this is actually very bad for steemit.. :/
Yes very sad.. this has negatively impacted me greatly as I was new to the platform and my reputation was already low. Very very sad..
Now I'm starting to think otherwise about this post, since a member of the EOS team has downvoted me, leaning towards the side of Fact...ridiculous!
This is interesting information!
Thanks!
Now I'm starting to think otherwise about this post, since a member of the EOS team has downvoted me, leaning towards the side of Fact...lol
Wow they blocked my post that talk bad about EOS to. Talk about censorship.
Smh are you serious?!? Man I thought this platform was suppose to allow these types of freedoms of expression?? WTF!
All within reason I guess. You cant talk bad about the creator.