Is EOS Just a Platform for Scams?

The Block is reporting that yet another EOS scam has come to light here in China. This team walked away with a much bigger haul than the DeFi hack earlier this week of Dforce Network's curiously named Lendf.me 😣.

Users woke up on Monday not being able to access the EOS Ecosystem wallet. Apparently, the team had walked away with over $52 million worth of funds. As is typical with Ponzi scams, they had lured people into storing their EOS tokens with the promise of quick and easy higher-than-normal returns. What it turned out to be, most likely, was that they were robbing Peter to pay Paul. Eventually, that kind of merry-go-round has to come to a stop. And it did on Monday.

What's more is this isn't even the first scam to be exposed on EOS. EOSCUBE, EOSFIN, and EOS Vote... all scams! Why would you even mess with this blockchain? I tried to install Scatter back in the day, which is the EOS version of Metamask pretty much. It was confusing, I just gave up!

Lucky for me, I gave up that night. Sold all my EOS and never looked back.

Even the block producer teams say it's all a joke. Everyone colludes with each other. No one is really investing in their projects. Earned EOS tokens are immediately sold into other crypto. They don't even take the project seriously... and they are put into the Top 21 that are supposed to provide critical on-chain governance for the whole of EOS!

But I'm not the only who has said or heard about EOS being basically a scam. Whiteblock released a report a couple years ago calling EOS "not a blockchain" and instead it is a "cloud computing service which is built on a centralized premise." Coindesk did a rather lengthy expose in September of last year.

It's a joke. But I've come to expect no better from the 2017-18 cohort of crypto ICO's. For those coins that are still around, they really don't have to do much except keep the torch alive long enough to justify paying their salaries and wasting everybody's time. For the most part, their job is done. They raised a bunch of ETH, hopefully sold it when it was around $1000, and now they have enough runway to sit around and pretend to do some stuff for pretty much as long as they want. In some ways, they are right. They have deep liquidity for their tokens, allowing them to slowly sell off their treasury to finance their salaries and conference goings on. Most of the work in crypto from that era went to market makers and marketers. Very little went into actual development. In that regard, EOS is no different. There's just no incentive to work hard when you've got millions in the bank.

So it honestly didn't surprise me one bit to hear that $52 million of EOS funds had been embezzled. At this point, it's come to be expected of that chain.

The only thing left to do now is wait and see if that money gets returned to its rightful owners like what happened recently with our Lendf.me hacker. S/he returned the funds!

Don't hold your breath for these EOS guys, though.