Things to beAware of About the EOS Crowdsale Going on Now!!!
With all due respect to Dan Larimer, I'm not saying don't do it, but I am saying, be aware of the these issues. I will not be buying.
EOS token are not tokens on the EOS platoform. They are ERC20 tokens on the Ethereum blockchain. Meaning these are contracts programmed on the Ethereum blockchain (ledger) and are not related to the EOS blockchain. Why not on their blockchain? Do they not trust their own blockchain? Read their FAQ.
A lot of Ether is going to be locked up for a whole year, and in the hands of a single company, allowing them to at any point crash the price of Ether, or perhaps use Ether to keep up the price of their token - thus rigging the market.
The terms and conditions on their FAQ state the tokens you are buying are not connected to the EOS platform, and do not guarantee you anything on their platform.
"The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform."
EOS is not a mined coin, and they reserve the right to inflate their tokens at will. And, t hey are going to be "disributing" 1 billion tokens. That's a lot of tokens. Given previous concerns, definitely a red flag for me.
You don't know how much you're paying for EOS tokens ahead of time: "No, it is not possible to know the price of a specific period until all ETH is received for that period ..."
It sounds like after a certain date, you won't be able to transfer (sell?) your tokens: "EOS Tokens will become fixed (non-transferable) on the Ethereum blockchain within 23 hours after the end of the final EOS Token distribution period which will occur on June 1, 2018 at 22:59:59 UTC." Maybe I'm misunderstanding what they mean, but that doesn't sound good to me.
Any potential value of your tokens depends on people developing software on the EOS blockchain... eventually. It sounds like they're trying to compete with Ethereum, while riding the Ethereum blockchain.
This isn't to say the EOS project will fail, but it sounds very risky. And it's too much risk for me.
Yeah, it won't be a scam as Dan is behind it but other than that it looks like. They can dump ETH anytime later once the product is ready. That's the reason it's ETH killer. I still wonder what is the use of EOS tokens, may be just to make the company rich.
To me, the fact that you're buying ERC20 tokens and they do not relate to the EOS platform is the biggest red flag. Do you know if Dan is employed by or owns Block One company?
There is no information about that but behind the scene I am sure he would receive a big cut. He is promoting it as if the product is ready to go. Also why did they go for ERC20 tokens when they could have created their own coin. Even ethically that's not right because they would have million(s) of ETH in balance to manipulate the market.
Also I saw Vitalik's video answering counter questions on EOS; he was pretty professional and answered to the point without demeaning anyone including Dan. But I didn't like Dan's response to it where he was just trying to demean ETH by showing the cons. Also if I am not wrong he showed pic of two big ETH pools as compared it with the centralization issue. I don't agree on that either.
Personally I don't care how much I would benefit in future from EOS but I have decided not to invest my hard earned money into something which is not concrete.
Good to know. The concept is intriguing, and they have a test network coming out soon. If I were to invest, I wonder if it would be cheaper to buy directly from an Exchange. But it would be a speculative play. Not buy and hold. Not very inclined as much as I do like Dan. I'll have to watch Vitalik's video.
I read that they're keeping a lot of the coins to control inflation. They don't want to dump a bunch of coins into the market and have the price skyrocket to just crash back down. I don't know anything though. lol I just read a bunch of stuff
Well, if they dump the coins, it'll tank the price right away. It would probably come back up eventually given all the usage/trading volume.
I just don't see the use case, or the value. Why it's better than Ethereum. I'm sure a better Ethereum will come, but I don't see that in EOS, in their own words, if it ever gets off the ground, whenever we finish building it.