• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Crypto Exchange Binance To Launch Prepaid Card In This South American Country
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Crypto Exchange Binance To Launch Prepaid Card In This South American Country
EOS, EOSUSD, EOSBTC, cryptocurrency, class action lawsuit
Advertisement

Why EOS is Underperforming Amid Lawsuit Scare And Weakening Fundamentals

Yashu Gola by Yashu Gola
3 years ago
in EOS
0
Advertisement
  • EOS has returned limited year-to-date profits in 2020 compared to its top cryptocurrency rivals.
  • At 1.80 percent, it by far is the worst-performing crypto-asset among the top ten.
  • The ninth-largest blockchain asset stares at potential losses amid a class-action lawsuit scare.

A dollar invested in EOS at the start of this year has returned $1.018 as on Wednesday.

The 1.8 percent year-to-date profit is attractive for investors accustomed to organically-pumped traditionally markets. But given the highly risky nature of cryptocurrency investments, the reward offered by the EOS market is very little compared to its top crypto rivals.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.
EOS, EOSUSD, EOSBTC, cryptocurrency, class action lawsuit
EOSUSD performance over the last three months | Source: Messari

The second-largest blockchain asset, Ethereum, for instance, is up circa 63 percent YTD. Tezos, another rival, has returned 107 percent gains in the same period.

Even a very controversial Bitcoin SV is sitting atop 106 percent YTD profits. Other tokens, including the benchmark Bitcoin, as well as Cardano and Bitcoin Cash, have beaten EOS in terms of profitability.

Weakening EOS Fundamentals

EOS’s poor returns follow a string of disappointing market updates. The cryptocurrency initially fell from $5.53 in February to as low as $1.27 by mid-March in a broader market sell-off – a 77 percent decline. It later recovered by more than 100 percent as a followup to a market-wide rebound.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Nevertheless, the recovery action accompanied weak trade metrics, primarily declining trade volumes that hinted at the involvement of fewer traders in the EOS market. In comparison, trading activity in the Bitcoin market grew stronger after March sell-off.

EOS, EOSUSD, EOSBTC, cryptocurrency, class action lawsuit
EOS trade volumes declining since March sell-off | Source: TradingView.com, Binance

EOS investors faced trust issues. Last year, skeptics accused its blockchain of promoting centralization under the garb of a decentralized project. Meanwhile, the U.S. Securities and Exchange Commission (SEC) slapped a $24 million penalty on EOS’s parent company, Block.one, for conducting an unregistered initial coin offering.

The setbacks led EOS into a further disappointing 2020. Weiss Ratings downgraded its blockchain’s rating to C-, criticizing the project for its growing centralization. Meanwhile, Block.one’s decision to not launch its much-publicized social media platform, Voice, atop EOS blockchain further shed doubts over the project’s long-term viability.

In May 2020, researchers at Cornell University found that people didn’t use EOS for value-transfer purposes but for placing small bets on its on-chain gambling apps. The chain’s zero-fee model – allegedly – allowed wash trading on decentralized exchanges (DEX),  making EOS transactions resemble the features of “DDoS attacks.”

The issue was full-on display when the EOS hosted the EIDOS token launch on its blockchain in early November. The “valueless” crypto ended up covering 95 percent of the network activity until the end of 2019.

New Lawsuit

The bullish prospect for the EOS market has gone further down as Block.one lands itself amid a class-action lawsuit.

Last month, the Crypto Assets Opportunity Fund (CAOF), along with investor Johnny Hong, accused Block.one of falsely inflating the price of EOS during their ICO that raised $4.1 billion between June 2017 and June 2018. The lawsuit also mentioned Block.one’s CEO Brendan Blumer, CTO Dan Larimer, ex-Chief Strategy Officer Brock Pierce and former partner Ian Grigg.

EOS, EOSUSD, EOSBTC, cryptocurrency, class action lawsuit
Source: Twitter

The fundamentals overall put EOS under severe downside risks – a pattern earlier noticed in another lawsuit hit cryptocurrency, XRP.

Feature Image by Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Puerto Rico flag and a beach

Crypto Influencers Are Moving To Puerto Rico Because Of The Tax Laws. Positive?

9 months ago
Brock Pierce, Honduras flag

Brock Pierce ’s Delegation Discusses Cryptocurrencies With Honduras’ President

1 year ago
Brock Pierce in El Salvador

Why Is Brock Pierce Leading An “Official Delegation of Bitcoin” In El Salvador?

2 years ago
EOS Cryptocurrency YTD Returns Turn Negative amid Macro Correction

EOS Cryptocurrency YTD Returns Turn Negative amid Macro Correction

3 years ago
EOS coin burn

EOS Burns $132M Worth of Tokens to Curb Inflation

3 years ago
EOS Suffered a Huge dApp User Drop Out, Latest Report Finds

EOS Suffered a Huge dApp User Drop Out, Latest Report Finds

3 years ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • California DMV Puts Car Titles On Tezos (XTZ) Blockchain...

    2 hours ago
  • Bitcoin Cash (BCH) Associates With TREZOR Wallet, Litecoin...

    2 hours ago
  • Avalanche (AVAX) price rally stalls, Polkadot (DOT) was #1...

    2 hours ago
  • Orbeon Protocol And VeChain Seek To Impact The Real World...

    3 hours ago
  • Meta Masters Guild Presale Raises Over $2m Ahead of Stage 5...

    5 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.