Published February 26, 2019
When a Cayman Islands-registered startup raised $4 billion without a live product to show, critics, attributed their success to pure marketing hype. It was the largest ICO of its kind ever witnessed. Some also called it a sign that the young will throw money at any grand idea, so long as it is revolutionary.
The rise of the EOS token
EOS is controversial and has attained a celebrity kind of status in the cryptosphere and its not just pure hype. The price of the EOS token has been on a healthy rise, especially since its main net was released to the market.
EOS is both a platform for decentralized apps and a blockchain network. It is said that it was built on Ethereum, but it is many times more potent regarding capacity. EOS’s design lacks the scalability shortcomings Ethereum has been plagued with. It makes the dApp community dream an achievable reality.
At the top of the crypto charts
Its cryptocurrency has had a great reception globally. By capitalization, its cryptocurrency is the 3rd leading in the world. It moves a volume of $542 million daily and has a market capitalization of over $2.1 billion. And while its healthy price growth and market share are part of the overall crypto recovery, EOS has a very robust fundamental backing its interim bullish sentiment.
The world’s third largest exchange for cryptocurrencies, Huobi is creating a derivative platform based on EOS, that will help traders take long or short positions using EOS tokens. The platform would enable EOS tokens to be used to speculate and hedge and for arbitrage as well. Such measures will push the demand for EOS tokens higher.
EOS blockchain platform is based on a proof-of-stake distribution protocol with block producers in place of miners. EOS platform users are allowed to vote for their preferred candidates for these positions by staking their tokens.
The 21 most massive stakes then become the platform’s active block producers. These candidates will produce blocks in turns, confirming transaction faster than your usual proof-of-work protocol. There is an EOS constitution in place that bars winners from rewarding voters.
Ethereum’s founder, Vitalik Buterin and many other in the cryptosphere are very wary of EOS’s plutocratic governance, which many feel is too centralized lacking the autonomy blockchain promises.
What are EOS’s benefits?
- It system handles scalability better than Ethereum or Bitcoin can, which helps it in the hosting of applications and the implementation of smart contracts better.
- Its platform eliminates transactions fees
- Its native token gives the owner both bandwidth and storage on the blockchain, proportionate to their stake.
- It has 21 block producers that will make the validation and generation of blocks faster than those of older cryptocurrencies.
How can you buy EOS?
EOS is listed on different trading exchanges globally paired alongside other cryptocurrencies like ETH, BTC, KRW, BNB or USDT. This means that you can obtain the EOS token by using these other tokens.
EOS is traded in major global exchanges like KuCoin, Huobi, Bitfinex, and Binance and has at least 120 pairings available. EOS tokens can be stored on EOSIO, which is ESO’s software and the Infinito wallet.
EOS blocks are moving at a fast rate, but the controversy over its levels of centralization is not going away anytime soon. For EOS and its many fans, the benefits of levels of centralization though seem to outweigh the risks. Are they right? Only time will tell.