A year in the life of EOS cryptocurrency

June 01, 2018
Chris Wheal

The dual ambitions of EOS – to be both a cryptocurrency token and a fee-free decentralised smart contract platform driven by blockchain – has excited many investors since the EOS cryptocurrency launched in July 2017.

From the outset, publicity was favourable. “EOS has a bright future and we should see it become a very prosperous token once the blockchain is launched,” wrote one commentator shortly after the launch. “By next week I would expect the price to be around the $2.00 mark again.”

However, at the end of July EOS was barely above the $1 level and the following month saw little movement. Early investors had their nerves tested, when it fell back in September to $0.85 and lost further ground in October to hit an all-time low of $0.49.

For those that persevered, their faith was rewarded when EOS climbed back to $1.05 in early November and then almost doubled over the month to end it at $2.05. From there it ascended rapidly to reach $12.38 in the final month of 2017.

The first five months of 2018 have proved even more volatile. By January 12, the price had reached $13.75 and jumped to $16.23 just one day later. However, it then demonstrated that it could retreat just as sharply and by March was fluctuating in a band between $4 and $7, to end the month at $6.50.

The price of the EON cryptocurrency has risen since its July 2017 despite periods of volatility: Shutterstock

Oliver opens fire

The temporary speed bump that EOS hit was partly due to TV commentator John Oliver, host of the show Last Week Tonight. The episode of March 11 was devoted to cryptocurrencies which, according to Oliver combine “everything you don’t understand about money with everything you don’t understand about computers.”

Turning his focus to EOS, Oliver commented: “Who knows? Maybe EOS is going to be the new Google. I don’t think it is and I certainly don’t think it can be worth over a billion dollars at this point, but I could be wrong. I’m absolutely not, but I could be.”

Oliver also had some withering remarks to make about former child star turned cryptocurrency celebrity Brock Pierce, who had been involved with several digital start-ups, including development of the EOS.IO platform. He also was named in several high-profile corporate scandals, which saw colleagues sent to jail.

EOS’s parent company, Block.one handled Oliver’s criticisms fairly deftly and pointed out that they had parted company with Pierce a week before the programme was broadcast.

This proved to be the prelude to the currency’s strongest month so far. During April frenzied trading drove EOS steadily higher and towards the end of the month its price briefly went above the $20 level to touch $22.71. Only Bitcoin and Tether were in greater demand.

“Over the past year, one of the underdogs turned major contender has been EOS, which has accumulated value of over $6 billion, thanks to its year-long token crowd sale (which raised $4 billion) and a $1 billion war chest for taking on its rivals,” reports BitcoinExchangeGuide.

Since last summer – particularly in late 2017 – fear of missing out, aka FOMO, appeared to be the main factor as investors assumed that the price of EOS and other cryptocurrencies was on a one-way upward curve. There was a brief recurrence of FOMO in April, when EOS gained more than 16% in one single trading session.

A yo-yo month

May  has been “an exceptionally yo-yo-ing month” for the currency, which began it promising to break $20 before a steady decline saw it shed more than 40% over the month and end at below $12. As an example, on Tuesday May 11 EOS began the day above $17, fell sharply to $13.54 before rallying to end the day’s session at $15.20 for a one-day decline of 14%.

EOS has become one of the most-traded cryptocurrencies in less than a year: Shutterstock

Despite this, the token was the fourth most-traded currency on the market, registering a 30-day market trading volume during May of over $47.5 billion. EOS accounted for 8.5% of trading, after Bitcoin (30%), Tether (15.5%) and Ethereum (13%).

BitcoinExchangeGuide also reported that on major cryptocurrency exchanges such as Binance and Okex, EOS was the second and sixth most-traded token by volume, while also performing strongly on other exchanges including Huobi, Upbit and Bithumb.

Despite a rough ride in the past month, the current market capitalisation of EOS still keeps it in position as the fifth-biggest cryptocurrency:

Market cap

  • Bitcoin                            $125.20 bn
  • Ethereum                      $   58.98 bn
  • Ripple                            $   23.20 bn
  • Bitcoin Cash                  $   16.48  bn
  • EOS                                $   10.59 bn

EOS remains comfortably above sixth-placed Litecoin ($6.64bn)

EOS now ranks as one of the top five cryptocurrenices by market cap: Shutterstock

Sky’s the limit?

Recent price vulnerability has been partly driven by reports that the EOS development team might have to delay the launch of the EOS mainnet, scheduled for June 2 after Chinese internet security firm Qihoo 360 claimed that it had detected some major security flaws in the platform.

“Media has incorrectly reported a potential delay in the release of EOSIO V1 due to software vulnerabilities,” EOS’ developers wrote on Twitter. “Our team has already fixed most and is hard at work on the remaining ones.”

Andreas Kaplan, commentator for the blockchain technologies and cryptocurrencies website is among those still confident that the potential of EOS’ platform is massive and could propel the price of EOS to $37 by the end of 2018 and $143 over the next five years.

“As more and more companies start using this platform for decentralised applications, its valuation will increase significantly,” Kaplan writes. “This is the reason why it might be a good option for the investors to invest in.”

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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