DAILY CRYPTO DOSE :- Is EOS a scam are the conspiracy theories true? , EOS coin Explained.
Hello, steemers today I am taking a peek on EOS. With the successful ICO 400 million dollar market cap and very confusing term and conditions. This new blockchain technology has been getting a bunch of attention, I want to find out why and if there is any truth behind some of the conspiracy theories circling out there.
EOS is being called by some an Ethereum killer which is a huge claim to make considering Ethereum is the worlds second largest cryptocurrency and one of the first to implement smart contracts. One of the many things that make EOS unique is the way it's raising money, Traditionally when a company had an idea or a person had an idea, they needed to do a series round of investment. Which meant that some rich accredited investors got together to put in some money then the team work and develop their product when the product was launched it become a company and it issued shares, which the public could buy.
Instead of doing this EOS has gone directly to the public with their offering and the way that they are doing this, is they're offering people an Ethereuim token, an ERC20 token. If you'd like to be part of the EOS project right now you need to buy this EOS token which is actually part of the Ethereum network. This is causing a lot of confusion for some people because the token that you buy on Ethereum network is not the token that you will be using later on, on the EOS network once it's launched, EOS is going to have its own blockchain and is actually going to compete with Ethereum.
One of the things that make EOS so different from Ethereum is the language in which the smart contracts are written.Ethereum uses its own language which requires a steep learning curve for most people to adapt whereas the idea behind EOS is that, it will be able to accept the common programming languages. So when companies are interested in building decentralized applications or using the blockchain technology, they'll be to write their smart contracts in a language that they feel comfortable with, then use the smart contract on the EOS network to enforce it.
EOS has a lot of credibilities because one of the founders is Dan Larimer (@dan) and he was the same person that created Bitshares and this great platform Steemit. Both of these ideas have been revolutionary blockchain technologies.Steemit is a social network very similar to Facebook only instead of the whole company and the whole idea being based on an advertising model like Facebook and ads.
In Steemit business module it's the content creators that get paid, so because it's a distributed network and it's decentralized it doesn't cost anything to use. If you a content creator or curator you are given a percentage of the network's value. The good thing about this project is if you use it you don't know you are on the blockchain, but whats actually going on behind the scenes is that there is a decentralized blockchain that's keeping everything running and that makes it unique.
Bitshares is slightly different in that it's a real time gross trading platform, it's made to be very fast, efficient transactions and smart contracts and why this is such a big deal is that when it was released, it was competing with Bitcoin. Bitcoin couldn't even come close to matching its speed or scalability and as Bitcoin is really struggling with the scaling, the whole idea behind bitshares is that they're able to infinitely scale.
EOS is supposed to be a mix of these two existing technologies plus an addition of some extra smart contract stuff which has made it really appealing. I think that's a reason that a lot of people have gotten involved with it. When you start reading the terms and conditions, that's where things start to get a little confusing. I have some serious red flags here because some of these steps might have been done innocently to protect the founders and the company, all this could be a giant mishap which is made to undermine Ethereum(my own thoughts).
NB~So I want to present the facts as they're given to me and I want you to make your own decision . The first thing that we need to understand with the EOS platform is, it hasn't been developed yet .The people that are buying tokens are for EOS there are actually buying Ethereum tokens and i think right now there is about a million Ethereum tokens locked away for this project .If you read the terms and conditions you will realize that by owning this token you actually have no right to the blockchain that they're creating. Below are some of their terms and conditions directly from website it says:-
EOS TOKENS HAVE NO RIGHTS, USES OR ATTRIBUTES.The EOS tokens do not have any right, use, purposes, attributes ,functionlities or features, express of implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS platform. Company does not guarantee and is not representing in any way to Buyer that the EOS Tokens have any rights, uses, purpose, attribution, functionalities of features.
source
So right there that should give an indication that there are definitely covering their own asses and they have registered the company in the Cayman Islands which he might have been done to minimize their tax liabilities but it also really limits the recourse that people could potentially have if it goes the other way. The terms and conditions continues:-
NOT A PURCHASE OF EOS PLATFORM TOKENS. EOS Tokens purchased under this Agreement are not tokens on the EOS Platform. Buyer acknowledges, understands and agrees that a buyer should not expect and there is no guarantee or representation made by Company that Buyer will receive any other product, service, rights, attributes, functionalities, features, or assets of any kind whatsoever, including, without limitation any cryptographic tokens digital assets now or in future whether through receipt exchange, conversion, redemption or otherwise.
source
Well if you have those tokens you have basically nothing except the hope and the prayer that one day the EOS organisation or EOS Blockchain is going to treat you right. If it does it could work out, I don't have enough reasons to say this is definitely a scam but*** I do see the potential of this technology as being a way to rapidly develop decentralized applications and finally having a very scalable blockchain solution***. I see the potential and also that Dan @dan Larimer also had success in other projects. I can believe in EOS in that regards.
But then if I look at the way that they've written their terms and conditions, which everybody has to agree on I get worried. Then if you look at the fact that there is no cap on the ICO and the ICO is lasting 12 months, there are basically selling for 12 months all these tokens and not promising anything. So now I think there is close to 250million dollars locked away in this project and some of the crazy conspiracy people out there have even accused EOS of doing this ICO in a way to sort of destabilize Ethereum.
Because in a year when EOS is ready to launch, they're a competing platform. If they are to emmediately dump all of their EOS tokens on the network they could substantially devalue the currency we could see like a flash crash that happened last month where Ethereum went down to $10. By having that many tokens and not really having clear intention of what there are doing with them that really poses a direct threat to Ethereum and Ethereum is actually helping them out right now by doing this ICO.
Another concern is that because there is no cap, and the ICO has been generating so much money, there is nothing to stop the people over at EOS from just buying back of their own tokens to prop up the price and to prop up the interest. Since there is no limit, this could go on for a year, they could get some of the Ethereum tokens that are locked away for this project they could go and put some of their money in behind it to pop up the price and there will be able to successfully manipulate the market over the next year so they could make as much money off this potential ICO before they even launched their product.
Since they have all these tokens tied up in this project and there have been some security issues with Ethereum and the way the smart contracts are written. People are saying whats going to stop this ICO from being robbed like some of the others or what happens if something goes wrong and i haven't got a sufficient answer to that question either other than you just hope nothing does go wrong.
If you are a potential investor and even if you really believe in this technology you have to seriously look at it and try to figure out what you're buying and figure out what is better to invest later on after they have a working product.If am I am not going to be guaranteed any tokens and I am not really going to be given any direct value or promise of any value these Ethereum ICOs tokens or the ERC20 tokens that i am getting right now.
In summary, EOS has the potential to be great , it has a good team of experienced people together they have the right expertise and if EOS can do all the things that its promised to do this could be a revolutionary blockchain technology.
CONS
- it is a new technology its ICO its unusual and its never been done before and there are potential for major downsize to any investor.
- There are concerns about the conspiracy thoeries that are floating around.
For me personally besides all the conspiracy i will tryout this coin and see where it takes me ,and guys as always never invest money you cant afford to lose .I hope you have enjoyed reading this article and i want to hear what you think.
Donations
BTC - 1CeT8H4TbrZAEwr9tJSK222r3agE4SfE8Q
ETH - 0xdCc6409fB1De028bdfA942e76c5C0121A550F4c7
LTC - LgTVniBDfgzeYjBVr6UpNrDxJzrkXH2Brv
Great article Tinashe. You did a really thorough job highlighting all the main points. I hadn't even really considered the possibility of funneling the ICO proceeds back into the ICO.
I read a post awhile back, probably by @dan or @eos or someone involved, that laid out the game-theory reasons for doing the ICO over a year. They were actually very good. The idea was that everyone would get a fair shot at investing in the ICO, and the lengthy time would provide a more stable, average, and fair price for everyone. On top of that, since the project wasn't running yet, having all the funding at once was unnecessary (no liquidity problems), therefore extending the sale further to get the maximum dispersal was best.
It was a really good post, it used the analogy of someone finding an asteroid made of gold and minting his own new gold coin (or something close to that), and what would be the best way to distribute the new coin the widest, and fairest, while still getting fair value for the creator?
Anyway, I was convinced that their ICO structure was an experiment in free-market "fairness". I'm not able to participate though.
I would say the most concerning item above would normally be that the token comes with no guarantee of anything. You've got to trust the team in this case, but perhaps that's true of most alt-coins now.
Please note that this article is an almost verbatim transcript of someone else's video:
So basically this person "Tinashe" just stole someone else's work.
Nice explanation
Great post! Thank you for sharing. As a newb to Crypto, I had no clue who Dan was until now. Thank you!
Haha same! I didn't know who he was until I saw this post too!
This article is a verbatim transcription of someone else's video :
Please flag this person for information theft
thank you for this good summary. I have the exact same reservations as you do - you get a worthless token with no legal recourse, and you just have to "hope" that you are getting an actual EOS token in the end.
So for me, probably a "invest, yes - but only a bit of money you are willing to lose completely, like a few hundred bucks"
Please note that this article is an almost verbatim transcript of someone else's video:
So basically this person "Tinashe" just stole someone else's work.
This post has received a 1.04 % upvote from @drotto thanks to: @banjo.
I'm still new to all of this but your post helped me learn so much! Thanks for sharing @tinashe! :)
you are welcome
I suggest visiting the youtube channel of the person who "Tinashe" stole from:
If you watch the video you'll see that this article is a direct transcription of the video, with only a few changes.
AND NOT A SINGLE CREDIT TO THE ORIGINAL CREATOR, PLEASE FLAG THIS CONTENT THIEF
Exactly what I noticed. I thought perhaps it was that person, but this seems very unlikely.
THIS ARTICLE IS A TOTAL RIP-OFF OF SOMEONE ELSE'S WORK:
Down to the every word, this person "Tinashe" just took someone else's work and credited himself.
Please flag this article to keep the Steem platform safe from abusers
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by Tinashe from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.
This article is a transcript from video:
the author of the article "Tinashe" did not credited the original author of the video, so he basically stole all his work.
I have som questions regarding EOS and I hope it's okay to post them here.
I just bought some EOS on Kraken without really knowing what I was buying into and I was hoping maybe someone could explain a few things to me. I know it's stupid to invest in something I don't understand but after selling my Bitcoin Cash that I got after the fork I felt a bit adventurous =) I'm new to cryptocurrencies and blockchain technology so please excuse my lack of knowledge.
What I don't understand is, what will happen to the EOS I bought after June 2018? Should I get a real Ethereum wallet instead of keeping them in my Kraken Exchange account before June 2018? Can I still trade my EOS after this date or what will happen?
/Kcfrau
lets talk on steemitchat @tinashe
Good discussion point. I fully understand what you're talking about. The amount of scammy coins out there that get blind 10m+ usd investments are facinating to me. Does anyone know about: https://www.coincheckup.com They seem to give this complete indepth analysis of all cryptocoins. Check: https://www.coincheckup.com/coins/Eos#analysis For the Eos Investment research report.
Please note that "Tinashe" just stole all the information VERBATIM, down to the word, from another person's video:
Don't support people who steal someone else's work without even a credit