EOS Underperforms Amid Lawsuit And Weak Fundamentals

EOS underperforms most of the altcoins this year, amid lawsuit and weak fundamentals, becoming the worst-performing asset among the top ten.
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In today’s EOS news we take a closer look at the ninth biggest crypto asset and its further potential losses.

The asset is amid a class-action lawsuit and in the meantime which is why EOS underperforms and it returned limited profits for this year compared to the top crypto rivals. The 1.8% year-to-date profit is attractive for investors that are used to organically pumped markets but with the high-risk nature of crypto investments, the reward offered by the EOS market is extremely little compared to the top crypto rivals. The second-biggest blockchain asset, for example, is up by 63% while Tezos returned 107 percent gains at the same time.

Bitcoin SV is also sitting on the 106% YTD profits and some other tokens including Bitcoin and Cardano have beaten EOS in regards to profitability. The poor returns for the asset follow the weak market updates. EOS fell from $5.53 back in February to as low as $1.27 by the middle of March, crashing by 77%. It later recovered by more than 100 percent after the market-wide rebound. The recovery action accompanied the weak trade metrics and the declining volumes which hinted at the involvement of the fewer traders on the market. the trading activity in the Bitcoin market grew stronger after the March sell-off.

The ability to claim falsehoods through the US legal system without evidence or consequence is damaging US #blockchain innovation, and I’m looking forward to light being shone on #EOS and other decentralized networks to dismantle conspiracy and fight hostile industry forces.

— Brendan Blumer (@BrendanBlumer) May 20, 2020

The EOS investors faced trust issues after the lawsuit was filed but last year the skeptics accused the blockchain of promoting the centralization under the garb of decentralized projects.  In the meantime, the US Securities and Exchange Commission dropped a $24 million penalty on EOS’s Block.one company for conducting an unregistered initial coin offering. This only led the price of the asset on a further downtrend and Weiss Ratings also downgraded the blockchain to C-, saying that the project was highly centralized. Block.one decided to not launch the publicized social media platform Voice on EOS because of the long-term viability of the project.

The researchers at Cornell University found that the people don’t use EOS for value transfer purposes but they place small bets on the gambling apps. The zero-fee model allowed wash trading on decentralized exchanges which made the EOS transactions similar to the DDoS attacks. The problem was full-on display once EOS hosted the EIDOS token launch back in November. The crypto ended up covering 95 percent of the network activity at the end of 2019.