An Update from Block.one CEO, Brendan Blumer
Hello everyone, I've just stumbled upon this video on youtube and was wondering what your thoughts are?
Hey Everyone, (writes Brendan Blumer),
I just watched this video; I wanted to get to it earlier but I haven't had time in the last few days.
A couple things:
The existing EOS ERC-20 token creates a distribution list that the public can use to launch and distribute an EOS.IO-based blockchain and community; it does not warrant or promise anything. It shows provable contribution for each token.
The product is the broad, provable, equitable distribution. Anyone can replicate any public blockchain in a few hours. The quality of the community and companies that adopt the chain is what determines network value.
At the end of the distribution, the first live version of the software will be published with an open source license. At the moment there is hundreds of millions-worth of vested interest in this distribution list, and it continues to grow daily, we expect the public to do great things with it.
ETH and BTC are collectively by far the majority of resources today; they are in fact the largest continuous "ICO". They use the 4-5 billion they collect annually to burn more electricity than small countries; this is used to process less than 25 transactions per second in aggregate. This is costing token holders more than 6 USD per transaction before additional fees. We firmly believe that the industry cannot continue to grow if the resources given to us continue to be nearly completely wasted; block.one and EOS.IO software is changing this.
The EOS virtual mining token sale recaptures value where others have burnt it, while preserving the proven effective distribution economics of PoW. In EOS the 4-5 billion of burnt capital would be budgeted by token holders in any way they felt created the most network value.
Block.one will be announcing some of its first investments into the EOS ecosystem very soon and we will begin to feel the first effects of more efficient capital deployment. We're working 24/7 and delivering information as fast possible.
Block.one is finalizing an engagement with a third party auditor to release a public audit designed to provide comfort that block.one has not participated in the EOS tokens sale in anyway, with any funds.
Block.one has already sold the majority of the ETH taken in from the ERC-20 token sale and will not be stockpiling the ETH it is raising from the sale. It's important to remember that order books are a zero sum game and for all the sell demand created when block.one sells ETH, equivalent ETH buy demand was created through our token sale. Therefore, the general decline of the ETH network isn't related to our token sale.
EOS is a true Decentralized Network that has 100% alignment of interests between beneficiaries and decisions makers; once the blockchain is launched, it has no dependency on any one company, foundation, or individual.
We understand the block.one token sale is a new structure; our internal and external counsel worked hard on structuring it in a way that made the network truly independent and and compliant on all fronts. Our lawyers were in communication with the SEC prior to issuing formal opinions. We chose to exclude the USA only because of local regulation that exists in places like NYC and Washington, not because of any concerns over the security status of the EOS ERC-20 token.
We appreciate the healthy skepticism and will always do our best to clarify misunderstandings. EOS is comprised of a robust community and backed by many of the the biggest influencers in the space - this is something we don't take for granted and would never compromise!
Brendan Blumer, CEO block.one
Genius is always at first confusing, until enough people grasp the concept...
And I hope EOS will offer support to investors, but ZERO as of this time.
I accidentally sent all my EOS to their EOSCrowdsale address instead of ether. I tried to contact anyone I can but no reply.
I tried to contact them but no luck, block.one contact form and twitter. This is a 1.86Billion estimated market cap but zero support to investors.
https://steemit.com/eos/@yehey/eos-1-86-billion-estimated-market-cap-but-don-t-offer-any-support
They love to accept our investment but no support to assist. This is bad business.
I also published this to our blog to get the attention of EOS Management. I hope someone will step up and address this concern.
https://que.com/i-lost-my-569-399-eos-investment/
@YEHEY
Sucks I hope they make it right. that's one of the pitfalls of the crypto world if you make a mistake there's usually no recourse. They're not obligated to help you and a lot of times there's no way to fix a bad transaction. In this case they could send the tokens back but I doubt they will for multiple different reasons.
Thanks for this post, I watched that video the other day and had some concerns over the points raised in it
Thank you for the update. Could you please also comment on the concerns raised in this post on Reddit?
I believe Block.one has already stated that the account does not belong to Block.one. Do you know who it does belong to? $114 million is a huge stockpile. For the sake of transparency, it should be known who owns +- 25% of the market cap of EOS.
I'd feel better if I knew if it's a group of people interested in using its stake for building applications on EOS or even investing long term. But at the moment, I can't shake the feeling that it's a group of people who are manipulating the price of EOS.
They can't manipulate the price until next year can they?
Please read the comments of the Reddit post. Someone/A group of people, is waiting until the last minute of each ICO window. Then, they pump a large amount of Ether in the ICO, which pumps the price of EOS to above the current market price.
The more ether that makes it into each ICO window only serves to drive up the price paid for each EOS token in that window. How would it make economic sense to try to get the price of EOS up on exchanges by paying a higher price than necessary for EOS tokens through the ICO?
Because if the group holds a large amount of EOS tokens so they wanted to put more ETH into the distribution to make the price high for their own benefit. Can't you get it !
Often times the ICO blocks come out 10% below exchange price too. The bulk of contributions rolling in at the last minute is the market working naturally. Have you ever participated in an Ebay auction? Everyone waits until the last microsecond and then the bids run up.
This is the nature of token sales. The crypto market caps are small enough that it just takes the few billionaires interested in these platforms to scoop up large portions of the market.
As this tech matures, i think that more fair token distributions models will appear. Someone could make an EOS clone with very specifically fair distribution models, but ultimately this will only be possible when more of the world is interested in crypto/blockchain.
As for your reddit link, it feels suspicious but really how does it amount to any thing else but arbitrage bots? The market is 24/7 and is what is driving the price at this point, not the crowd sale.
There is no reason to use a complicated website dealing with "scary" smart contracts when you can just buy it on a handful of exchanges (and as a US resident). So naturally the price before the last minute will be low, because there is no incentive to buy tokens that way (and bots will naturally compete until there is no profit).
Thanks for publishing this Brenden, it's just what the community needs.
The biggest concerns for me, and what have prevented me from participating so far, are the details around the "distribution list" and Block.One reinvesting funds in the "list".
I'm glad to hear that you are arranging an Audit, i think this is essential. I think all investors in this space need to demand this from anything they are investing in.
As far as the terms around the "distribution list", it really would be nice to have more assurance that shares on the list will be transfered to the launch of the main EOS chain.
...
I take this as Block.One will not be launching a chain with the distribution list, they will publish the open source network software, and will let the investors take it from there. So maybe at this point block.one will launch EOS but distribute tokens to their platform in a different way (or maybe focus on specific business blockchains).
At the very least it will be interesting to watch it all play out.
Thanks for the clarification Brendan. It's encouraging to see that even outlandish critiques addressed in this straight forward manner. EOS = the future!
Link to the video:
This guy is hosting one of the best channels around block-chain and cryptocurrencies that I came across up to now. Very much recommended. Previous to this video, he also uploaded another one about the benefits and concept of EOS. Check it out :)
yeah "you guys"
I'v seen the video, and to be honest I can't 100% follow all the technical sides. With that said, I still put some of my investments in EOS, because I believe it can truly change the future and is something I like to be a part of. Yes, we are still paying for an idea now, but we need to have some faith right ;) The ambition and vision surely seems to be there! Can't wait to see where this technology is gonna bring us a few years for now :D
It's more than an idea https://github.com/EOSIO/eos
https://github.com/EOSIO/eos/commits/master
Of course it's more than just an idea, but we aren't paying for anything solid right now that can be used as of yet.
The existing EOS ERC-20 token creates a distribution list that the public can use to launch and distribute an EOS.IO-based blockchain and community; it does not warrant or promise anything. It shows provable contribution for each token.That's still confusing to me. Let's assume that EOS one day will have its own blockchain. What will be a role of EOS tokens, if any in it?
The fud is real, but EOS will be a game changer, next level dapps and more. Thanks @eosio for the update.