EOS below hearth in excess of promises its ICO was a shady “pump plan”

During a 12 months-extensive initial coin presenting (ICO) that finished in 2018, EOS lifted a record $4.2 billion, earning it the largest ICO in historical past. Put together with its Delegated Evidence-of-Stake (DPoS) consensus mechanism, which has throughput hundreds of instances larger than Ethereum’s, anticipations were being substantial.

But these expectations carry on to go unfulfilled. A look at EOS’s stagnant dapp development, and slide in the CoinMarketCap rankings, displays a venture that has fallen by the wayside.

In December 2020, the CTO at the improvement firm behind EOS, Dan Larimer, resigned, adding to the project’s unsure long term.

But new investigation from forensic fiscal examination company Integra FEC throws new question on the project’s viability.

What took place to EOS?

The explanations for EOS slipping by the wayside are numerous. To start with, there were being claims that EOS’s construction is extra akin to a dispersed database rather than a cryptographic protocol. Meaning the community isn’t as decentralized as claimed.

“the EOS network is not necessarily a blockchain based mostly cryptocurrency network, but somewhat a homogenous distributed databases community that allows unique consumer accounts to connect and interact by way of the distributed community database.”

Then in late 2019, EOS endured congestion difficulties ensuing in gradual transaction instances and high service fees. As a result, some accused it of staying unfit for function.

At around the identical time, on charges it had conducted an unregistered ICO, the SEC introduced settling with EOS for $24 million.

In quick, EOS

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Amazon’s Cryptocurrency Plan Could Be a Game Changer

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Bitcoin and other cryptocurrencies have fallen on hard times recently, but the sector may have found its hero in the form of


The company’s job vacancy advertising for a “digital currency and blockchain product lead” has sparked rampant speculation over what the tech giant might have planned. The new position will be part of the team responsible for how Amazon’s customers pay on its platforms.

The possibility of Amazon accepting cryptocurrency payments—by the end of the year, according to some reports—saw Bitcoin surge to six-week highs just below $40,000. There’s even the suggestion the internet behemoth could be developing its own coin and may also accept alternatives such as Ethereum.

Cryptocurrencies face a fight over their role in society, their use, and ultimately their value. Acceptance by a company as big as Amazon will only help their case. It’s a bold move from Amazon, and how the company deals with the famed volatility of cryptocurrencies will be fascinating to see.

Investors may not need to wait long for answers. Amazon reports earnings on Thursday and executives will surely face a volley of questions on the matter.

Callum Keown

***On this week’s Barron’s Streetwise podcast, columnist Jack Hough discusses the future of power distribution and why breaking up is a bad idea with Duke Energy

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