Could EOS Become the Most Widely Distributed ICO Ever?
Last month I wrote about the Fear of Missing Out (FOMO) surrounding the EOS ICO.
I was wrong.
Well, at least I was wrong about my initial short term predictions. I figured, with a year long ICO, the price of EOS would surely drop below the initial 5-day ICO price. As eosscan.io clearly shows, the price went up almost 7 times higher by day 2. It has come down since then and is currently hovering just below $2, but still higher than I expected.
I thought the price would be much lower. I figured it would continue to decline as the months go by and people lose interest and move on to the next hot ICO. Maybe they will, and I won't be completely wrong. I've only bought a handful so far by placing some low buy orders on Bitfinex where I thought support might be.
I want to buy more. Part of me thinks I'm being penny wise and dollar foolish to wait. I do think this may be one of the best blockchain technologies we've yet seen. Dan has a proven track record for building high performance, useable technologies which meet very real needs (a distributed exchange and a decentralized, uncensorable social media platform). If EOS has a chance to be the Amazon Web Services of decentralized blockchain applications, any holders of EOS could become very well off indeed.
As I was thinking about things today, I was curious about how the distribution is going so far. I was really impressed to see this:
![](https://steemitimages.com/640x0/https://content.screencast.com/users/lukestokes/folders/Jing/media/6ccc0f9f-a447-4559-be4f-ca2047031e7a/00003617.png)
10% is locked up for later use by block.one.
65% is still to be distributed by the year-long ICO.
The two next largest wallets have only 1.45% and 1.42% and for all I know they could be exchanges. There are currently over 57,704 EOS holders and there are still 320 days left in the ICO period. If you haven't yet read this post, give it a read:
Logically Consistent Principles for Token Distributions
From my perspective, they were right. So far, the 6 principles they laid out are being met:
- Nobody should get something for nothing
- Everyone should receive a market determined price
- Everyone should have an equal opportunity to participate
- Developer incentives should be aligned
- Economic disincentives for buying more than 50 percent of a distribution
- Minimize transaction costs (mining, fees, etc.)
So far, the price has been surprisingly stable after the initial correction:
So we have a new token that (so far) is being widely distributed. Sure the whales will keep buying up a large share, but we haven't seen one wallet owning a huge amount like with many other ICOs. That, to me, is fantastic.
So am I buying? Well... not yet. I'll keep putting in lower orders for the price to bounce off of, but I also want to be patient and rational. For example, the last ICO window closed at $1.1886 but the market price is at $1.94. That's not very rational.
So what am I doing in the mean time? Well, I'm compiling EOS. :)
I'm using @clayop's docker guide and Google Compute Engine. I've never used Google Computer Engine before, and it's pretty neat. I've got a $300 credit good for 12 months, so I can play around with this for free (for now). I also joined the EOS Developers Telegram to start listening and learning.
In addition, I'm reading through EOS Development Sneak Peek for Very Early Developers by @dan. My hope is to get familiar with things early on and help the EOS community however I can. I'll be posting more in the future if I get it up and running and start playing with some of the example contracts. I intend to go through some tutorials on C++ as well. Though I've programmed in many languages, that's one I haven't messed with professionally.
Exciting times!
Created with ChainBB to help support that project.
Luke Stokes is a father, husband, business owner, programmer, and voluntaryist who wants to help create a world we all want to live in. Visit UnderstandingBlockchainFreedom.com
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Looking forward to getting my hands some closer to the $1 range.
Thanks for the ICO update.
I am optimistic that there will be a bump to > $5 this fall when the test eviro/chain is in the wild and people start working with EOS. Then >$50 next fall after the chain is live and DAPPs start being released. There is zero TA in those numbers, just gut feeling based on four or so years of crypto investing. Could also be much higher sooner if Bitcoin goes bananas this fall and there is a bunch of hot money looking for a place to land.
The bitcoin goes bananas scenario is starting to seem like more and more of a possibility. For the first time in many years, I'm actually considering dusting off some paper wallets and moving some things around. It's tempting to leave this BTC drama behind me and move on to better things.
Im sure you would be an asset to EOS in any capacity you decided to help it! There was lots of negative talk about the distribution model, but it seemed to stay consistent even with all the other coins shooting up and plunging. which is impressive, still a lot more coins to go so I can see why you aren't jumping in. I am also grabbing a bit here and a bit there, hoping its the best strategy. I look forward to seeing you talk about running the testnet, and what you learn from being in the channels and on the new chain! Thanks for all you do
Thanks! My first build attempt failed with this:
Still working through it.
EOS is headed to raising 60 million ether with no project to show yet. I am not a hater- I like EOS idea and I bought some tokens- but I see it as highly speculative.
It's dangerous to invest in promises. Promises of new tech, promises of revenues. (Anyone remember pets.com?)
Personally I have more confidence in projects that are live, even in a beta stage. Projects like Lbry and onG.Social.
In the case of onG they are live with more users than Steemit and have not yet had their ICO (its next week). Now all crypto investments have risk but that seems more solid to me.
Yeah, you are absolutely right !
Most ICOs are just potential no reall value yet.
Ongcoin is one of the few icos that have laready working product with lots of users which makes it a low
risk investment. But at the same time it has alot of potential. It has the potential to become the new FB.
Low risk + High potential = Good investment !
Now that I've studied a bit more I feel that there are lot of trust related problems regarding EOS. As EOS tokens are now based on eth blockchain and that they do not have any rights towards the actual EOS platform (check out the terms) I'm reclutant to invest in this coin. IMO onG seems more trustworthy project that EOS atm. About Lbry I don't know that much about.
Ong social is backed by IBM. Like u rightly said there are already users in ONG social. Makes a legit project for me
I hadn't heard of onG.Social before. Looks interesting. Nothing on their home page about the ICO. Also interesting.
I agree, solid investments are the way to go when you can get them, but I also think the huge returns come from larger risks which involve bets on paradigm shifting technologies. If onG is already up and running, do they really need a coin? Will it really be a paradigm shift? EOS, to me, could be. Banks, governments, corporations, non-profits, etc... they will all be impacted by smart contract technology on the blockchain. Entrepreneurs in the future will ask themselves questions like, "Do we want to spin up some servers on AWS to run this the old fashioned way or should we rent / buy some EOS and put it on the blockchain?"
That's a paradigm shift and, if it works, it could be huge
As to the pets.com comparison, Dan does have projects to show already. So the promise there isn't an empty one.
The ICO is called ongcoin
It is at the bottom of the page.
Good article but personally i think EOS is a bit over-hyped. Project is quite new. Also reading the agreement: https://eos.io/purchase_agreement
The terms are really really crappy. Just read it yourself.
I have read allot about Dan Larimer (the man behind EOS) and the projects he has been involved in like Bitshare and Steem. It does not sound encouraging when the lead architect jumps boat from project to project. Maybe in 6 month he finds an even better solution and starts over. I have worked as a developer many years and now i'm a project manager so i get a bad feeling when i see the major player has changed from project to project like that. This might be a great platform/tech and even surpass ETH and STEEM but personally i would wait to see some progress before jumping in. Just my 2 cent!
Dan leaves as soon as his projects are self-sustaining. Clock is ticking and he has a vision that is much, much bigger than any individual chain.
How would you like to see the terms be different? They are written how they need to be written to avoid legal issues with the SEC.
From my understanding of many interviews and reading Dan's own words for the last year, smart contracts for spreading freedom and liberty has always been a big goal of his. When a project is done and functional, he moved on because at that point the problems weren't technical but more about marketing, UI, front-end design, etc.
They were indeed technical from what i recall (as well as political). Cant remember exactly where i read that. In this article for ex he said: “New opportunities to pursue my vision of free market solutions to secure life liberty and property.” A bit vague...
http://www.razor-forex.com/2017/03/steemit-lead-developer-dan-larimer.html
Sure maybe the problem was political in nature but i get a feeling he gives up to easily on his projects.
https://steemit.com/danlarimer/@stellabelle/dan-larimer-visionary-programmer-of-bitshares-steem-and-eos
Also EOS its build on top of ETH (if i understand) which has scalability problem, why not use like Bitshare (maybe same problem there)?
Not sure about NEO/XEM (competitors that are much further in development?)
I was wrong before i meant the Purchase Agreement not the whitepapers! It is very much so in favor of EOS.
EX:
• EOS TOKENS HAVE NO RIGHTS, USES OR ATTRIBUTES
• NOT A PURCHASE OF EOS PLATFORM TOKENS
and many more strange things i dont understand to be honest. Its not even clear (to me at least what and how many tokens you get).
I'm not even sure what you get from the sale, this is an example from the document, very vague!
As an example:
Here is the full Purchase Agreement: (not sure how to attach in STEEM, had to save it on OneDrive and share)
https://1drv.ms/w/s!Ag9C_L5-r1Cxg7B9Qv2iDDVUUPBWrQ
And how is this different from just buying the token from en exchange? at 1.7 dollar you get much more compared to what they explain in the end of the document.
I have to read this a few more times i think.I'm far from a expert in this area to be frank so i might misunderstand several things. I am still reading and learning every day ....i must apologize if i assume and interpret in a wrong way.
I'm sorry, but that's just really ignorant. No, it's not built on top of ETH. The coin distribution uses ETH and that's it. EOS is graphene based technology like Steem and BitShares.
The ICO is written, as I said, to avoid legal issues. Yes, it's in EOS's favor as it needs to be to be legal. They haven't taken advantage of anyone yet and it's all open on the ETH blockchain.
Maybe read a bit more from Dan himself or watch interviews of his own words. He recently explained on Anarchast exactly why he left Steemit and that it was the plan all along.
That is what i am doing and learning. I did say i might be wrong about some of my assumptions. There are actually videos saying that it is build on top of ETH. There are lots of misinformation in this space.
Calling someone that is learning ignorant and asking for information is really just sad.
Legal issues: I dont think people should sign papers blindly without understanding what they are getting in return. And for me the terms are just to vague and give the buyer pretty much nothing in term of safety.
In regard to Dan, i been reading allot and he feels like someone who needs to be in charge 100% or he gets mad and leave (again i might be wrong but this is the impression i get reading and watching videos). In a big organization you need to adapt, get along with people, compromise and handle the politic. At least in this area i'm much better (being a project manager). He seem to be a great asset with lots of experience and knowledge but i dont think i trust his corporate drive. Just my personal opinion.
I will monitor EOS and read more about it during meantime....
I welcome constructive discussion and if you can provide good links i will for sure read and learn more.
My intention was not to offend, but to make a factual statement. By ignorant, I meant this:
I'm all for learning! But stating something false as true should be called out.
Those videos are also ignorant. That's just a fact. They don't know what they are talking about on this particular topic. Stating so is how we decrease the "misinformation in this space".
My suggestion is to focus on first principles. Go to the source. If you're learning, that's fantastic! But be careful who you learn from because you may be learning things which are factually incorrect.
Read Dan's blog, watch interviews he's given. That would be the source for describing what EOS is (along with the actual code itself and graphene technology in general). Then, read criticisms and check them against known logical fallacies to see if they are factually correct. From what I've seen so far, the criticisms are quite weak and Dan's responses (like this one today) seem quite solid to me.
Fair points. I will read the link but just watched a great video by a developer that i subscribe to. I dont listen to speculation to be honest. I listen and read people who seem to know the technical aspect of things.
Any way this is the video:
Ivan is very technical and explains some of my cencerns much much better then i ever could:
==> EOS is distributing tokens on ETH blockchain (this is what confused and why i wrote my previous comment)
As the video points out these tokens will not be usuable on EOS blockchain! very strange i think. So what is the point
when EOS dont even uses its own blockchain?
Also note the other redflags Ivan mentions (ex Ether locked up under 1 company). Also he highlight some of the terms i pointed out. He is much more knowledgable then me so i dont think i was very far off to be honest.
Basically EOS is not obliged to give you anything if they choose to. And the tokens you get might not even be worth anything as its not based on their own blockchain.
And as Ivan says in the end of his video: would any smart investor give away their money without any proof of concept and these terms? The answer is of course NO.
This is just my 2 cent. People can invest in whatever they like. I'm just highlighting some concernts as an investor.
ps. i will continue to read and learn more of course on EOS and other blockchains. I think blockchain is the future and will pretty much be as big as internet was back in the days when it went mainstream.
Just watched the video. I think you're misrepresenting the author of the video. Most of it was them reading something from someone else, not their personal opinion. This person is up front about how they don't like ICOs in general and said the same thing I did, meaning there are no guarantees when it comes to ICOs (not just this ICO).
But yes, there is no proof of concept (yet). To me, that's okay because I've been using Steemit for over a year and BitShares for almost as long. That's my proof of concept. I also build the EOS code this weekend, so it's not vaporware. The video says to know the people you're giving money to. That's great advice and I know the authors of EOS based on what they've already accomplished in this space.
The EOS blockchain doesn't even exist yet. How can they sell a token to be used on a chain that doesn't exist? They will be redeemed for EOS tokens. Read actual publications by EOS to understand these things. Go to the source.
I'll watch this video, but the way you describe it, it sounds like FUD. Almost every ICO terms of service I've seen has similar language basically saying you're donating to them and you get nothing in return which keeps them out of trouble from the government. It's all about trust. If you trust a project team and their vision, you invest, otherwise you don't. For those unwilling to do that, they should wait until the project is fully functional and launches and buy the tokens on the open market.
Step 1: Stop assuming.
Step 2: Don't believe everything you read.
you are purely speaking from a humanly common sense, and I'm kinda agreed with you.
Cheers!
This is great to hear that you're doing your due diligence now in anticipation of EOS launching. The key for EOS mass adoption will be attracting development talent to develop dApps for EOS.
Personally, I think capital will eventually begin to run dry as the ICO goes along and maybe past day 100+ we will start to see EOS below $1 on the token distribution (the exchanges are a different story). Curious for your opinion on the matter, though.
Yeah, 100+ days in will be really interesting. Will some people still be buying consistently? Some might. Big whales in particular. But yeah, for it to continue as it has would mean quite a big marketcap right out of the bat. Anything is possible, I guess. A year from now the whole crypto market could be way higher... or, of course, much lower. :)
I'm thinking higher makes more sense.
Thx for sharing
Awesome post. I found this very informative and valuable. May feature it in an Episode of my ~(~Q2C2~)~
Thanks for sharing. Keep up the great work.
I'm in the same boat, lol. I bought a little b/c the FOMO was just too strong but have been patiently waiting for the pullback and it hasn't happened yet, but I believe it will.
Dan has a very clear vision for what he wants EOS to be able to do and his track record speaks for it's self. I feel EOS will not only make good on Ether's promises, but revolutionize the space. I feel EOS will be the coin to overtake BTC in market share.
That's great you're getting involved so early and will look forward to your posts regarding EOS. I would Re-Steem this but we need to keep the EOS chatter to a minimum to get the price down. JK, :)Re-Steemed Great post brother!!
Thanks! I hope there will be a pullback as well... maybe many months from now. At the same time, it wouldn't be crazy to think some people will buy no matter what the price is because they are pricing in the future value in 5+ years. That's when my FOMO gets going again, and I feel I should be buying. I just have to keep telling myself, "Steady... steady..."
I'm going to Load up anywhere at that $1 price 🤑
Sounds like a pretty good plan. I'm really, really curious to know what the price will be in 6 months. When I first got into Steem it was as high as $4 and watched it go down to $0.15.
That true, only time will tell but EOS can be huge. 10X bagger :)
o damn thats high but in 3 years when hopefully its 100 you think back and say damn why didnt i get more :D
I got ETH at 10 dollar but only like 25 so i hate myself now hehe