Bitcoin Global News (BGN)
June 04, 2018 -- ADVFN Crypto NewsWire -- With the EOS main
net launching at the time that this is being written,
it seemed important to examine what’s behind EOS’s rapidly rising
value. The urgency of such an analysis becomes even more apparent
when the fact is taken into account that reports have consistently
come out questioning EOS’s value, over the course of its long
ICO.
If you take a look at EOS on
Coinmarketcap, as of now on Sunday at 10 a.m. EST, it is clear that
confidence in it is rising due to the imminent launch of its first
product. Following this, it can also be argued that this rise in
confidence gives all the more reason for reasonable skepticism
related to the reasons behind it.
It should be made clear that this
is not a criticism of EOS alone, but more of a call for reasonable
doubt with regards to any project that undergoes a steep climb in
its value, with no indication of any utility.
Even so, with specific regard to
EOS, its current gains have been explained as speculation due to its main
net launch put together with the freezing of EOS tokens during the
same launch. As a consequence, now that the tokens have been
frozen, this appears to mean that they can’t be used anywhere else
other than on the EOS ecosystem.
When this is considered, then it
can be said that some evidence exists for the argument that EOS’s
present value is largely artificial. There’s no full product yet.
The main net just launched and with any scarce asset, a
natural jump in value occurs, at least in the
short-term.
If one chooses to believe this,
however, then it’s hard not to look at hundreds of other projects
in the Crypto industry in the same way. Even after a main net is
launched, in fact, a Blockchain project’s value still largely
depends on network effects because most of the projects in the
space are platforms.
If you’re not quite clear on this
particular conception of a platform, think Ebay, except
decentralized and fitted with largely indisputable proof of
ownership. Except for these differences, in the Blockchain
world, a platform is still a place where different groups of users
exchange services to keep the entire network running as well as
consistently generating a profit.
EOS is trying to be this. In fact,
it could be said that they’re trying to be a bigger and better
version of Ethereum, with more scaling ability. To scale
successfully, their algorithms will have to hold up in the face of
security-related as well as growth-related pressure and above all,
they will have to attract excellent partners.
Some industry insiders have pointed
out that even with the accusations of a jump in value due to
speculation and scarcity, it could also be said that this could be
due to its recently announced partnership with a financial
technology firm called FinLab AG, to the tune of $100 million,
which will be used for development on the EOS chain.
Whatever the case, in the end, EOS
is currently only a foundation that could one day be something
great. Whether or not it will become anything that will have a long
lasting impact on the global market will depend on how and when
applications are built on top of it by its partners. If these
applications attract enough users for the network to reach whatever
critical mass that it desires, then we will be able to consider EOS
as a project with true, real world utility.
By: BGN Editorial Staff
News:
EOS (EOS)
Cryptocurrency
Blockchain
Ethereum
(ETH)