EOS: The Underperforming Star of Crypto

Once basking in the limelight of the top ten cryptocurrencies, EOS has taken quite a tumble in the latest crypto rally. Market turbulence has seen its price decline by a staggering 26% over the past year, especially following the departure of co-founder Dan Larimer. So, what gives? Is it the end of the line for EOS, or could it possibly rise from the ashes?

Insight from Jeff Dorman

According to Chartered Financial Analyst and Arca CIO, Jeff Dorman, there’s a silver lining lurking within EOS. Dorman highlights that, aside from the famously volatile XRP, EOS is one of the few major crypto assets that hasn’t reaped the rewards from this latest surge. Yet, he’s eyeing the asset as a potential risk/reward opportunity – especially given Marketone’s massive Bitcoin treasure chest.

Block.one’s Bitcoin Bonanza

Block.one, the parent company behind EOS, boasts a hefty 140,000 BTC holding, valued at roughly $5.5 billion. Dorman draws a comparison between EOS’s market cap and Block.one’s Bitcoin stash, suggesting,

“At $2.77, the market cap of $EOS is $2.6 bn, which is only 47% of the value of their BTC holdings. That means by buying $EOS, you are actually buying $BTC at $18,771. Huge discount.”

The Future of EOS: Options Ahead

While Dorman acknowledges that investing in EOS right now feels like a gamble, he underscores the necessity for Block.one’s leadership to step up their game. Their options are clear: create value for token holders, return capital, or brace for potential lawsuits. It’s now or never for the company if they hope to bridge the divide between EOS’s market cap and the value represented by their Bitcoin assets.

Counter Arguments and Concerns

Not everyone is cheering for Dorman’s outlook. Critics remind us that buying EOS doesn’t equate to buying Bitcoin. While Block.one does control 10% of the EOS token supply and keeps the eosio code updated, it doesn’t directly reward EOS holders with their Bitcoin bounty. One responder even went as far as to say,

“EOS was nothing more than a Bitcoin heist.”

Current Landscape

As of now, EOS is trading at $2.80, remaining flat for the day but down nearly 13% over the past week. Is it worth the risk? Only time will tell! Until then, crypto investors must weigh their options carefully, navigating the wild world of digital currencies with caution— and perhaps a little bit of humor.