EOS MOVES MAJOR AMOUNTS OF ETHER TO BITFINEX, SPARKING MARKET CONCERNS

BIG MONEY MOVEMENT
EOS — a blockchain-powered infrastructure for decentralized applications (DApps) — has gained substantial traction over the last year, while managing to raise a staggering $4 billion by the conclusion of its initial coin offering (ICO).

The project’s crowdsale address is publically available and illustrates how of EOS’ ether goes to an address which is tagged EOS-Owner.

At the time of this writing, EOS’ main ether account is currently holding an estimated 737,000 ETH — down roughly 400,000 ETH from its previous balance. As tracked by Trustnodes, a serious movement of roughly 200,000 ETH was sent to Bitfinex on June 1. Said movement currently equates to a little over $115 million.

The entire transfer was apparently carried out by moving the funds from the main EOS-Owner account through two intermediaries, before moving directly to an account tagged as Bitfinex_Wallet4.

BIG WORRIES
While EOS’ ICO managed to prove that the new (and sometimes controversial) fundraising model may prove a more effective alternative to traditional venture capitalism, it did put quite a lot of power into the hands of a single entity – namely, the company behind EOS: Block.one.

If history is any indicator, this concentration of ETH might not be the healthiest development.

On May 28, Bitfinex saw a massive exchange of some 200,000 ETH on its platform — most of which was selling. Reports claim that it was EOS who moved the substantial amount, which likely contributed to a decline of almost 9 percent for the day.

Now, another 200,000 ETH (worth $120 million) has been deposited into the same Bitfinex wallet.

According to SANbase, EOS has spent over $2.5 million in ETH in the last month, alone. More than $300,000 of that sum was sold in the last 24 hours — suggesting that more selling may soon follow.