However, few users know the exact history of EOS, and some may be interested in learning a bit more about the subject. That’s good, that’s exactly what we’ll see together in the rest of this article.
Genesis of the project
Block.one, the company behind the project, started from the observation that blockchains like those of Ethereum and Bitcoin could not allow companies to deploy decentralized applications on an industrial basis because of technical limitations of these blockchains.
Not only the number of transactions per second is extremely low, but it is also necessary wait too long for a block to be validated, which is necessary in certain situations to move on to the next step in a decision-making process as is often the case with DApps (Decentralized Application).
The idea was therefore to create a digital asset that would make it possible to carry out several million transactions per second, while making it possible to pay minimal fees thanks to a clever system which grants a percentage of network computing power according to the percentage of EOS tokens held (2% of the tokens obtain 2% of the total computing power). In addition, the blocks have a average frequency of 500 ms, which solves a lot of concerns about the speed of validation of these.
The arrival on the market and its beginnings
The EOS white paper date of the year 2017 and the project came to market through an ICO, which spanned june 2017 until the exit of EOS.IO the 1er june 2018. In total, the company managed to raise more than $ 4 billion, which is a colossal sum and an absolute record as of this writing (March 2021).
However, the EOS tokens were already tradable on exchanges in date of July 3, 2017 at the price of 4.33 $. The first time the unit price of a EOS exceeded $ 10 was the December 20, 2017 and most historical high was reached on April 29, 2018 at $ 22.89, at a time when the entire cryptocurrency market was severely correcting from the bullrun at the end of 2017. EOS was at this time the most successful cryptocurrency of the moment if we refer only to its price.
Originally appeared as tokens ERC-20 (using blockchain Ethereum), tokens from EOS will eventually converted to another format to evolve on their own blockchain. For this, users were required to register them before the release of the mainnet initially planned in June 2, 2018. If this action was not performed, the tokens EOS were then definitely lost for users. Some exchange sites, as Binance, performed this action automatically in place of their users, saving a lot of distracted investors from losing their digital assets.
Trouble with the US SEC
The DRY (Securities and Exchange Commission), the American stock market policeman, considered that EOS violated the law that applied to fundraising by not recording sound correctly ICO, since it was accessible to American investors.
Therefore, the October 1, 2019, the DRY fined $ 24 million at Block.One. This sum, in comparison with $ 4 billion recovered during the CIO, represents a fine of around 0.6%, which did not fail to arouse reactions from many individuals that he was certainly not a deterrent punishment. This did not have any impact on EOS courses at that time.
The current situation
If on paper EOS is undeniably a excellent project and that he was able to climb into the top 3 most capitalized digital assets at one point it turns out that the popularity of it keeps declining over time.
For many, this is in part related to the fact that the company has been successful in raise too much money compared to its current state of development. The tokens were then valued at a much too high value and the speculative part in the price of the latter was far too important.
Since april 2019, We observe that the satoshis value of the EOS, i.e. related to Bitcoin, decrease continuously and almost linearly, to almost reach its lowest historical at the time of writing this article, which is a sign of a lack of interest in the project on the part of many investors.
Conclusion on the history of EOS
Now you are up to date with the history of EOS. As you may have noticed, just because the project was the ICO that raised the most money of all time doesn’t necessarily mean that it has to become the most capitalized cryptocurrency.
EOS is a promising project, but it is still failing to deliver on the promises it made to its investors. This may therefore partly explain its loss of positions in the ranking of the most capitalized digital assets.
However, many things can happen unexpectedly in the cryptocurrency world. It is therefore quite possible that EOS will recover in the future and that a new craze on the part of the general public will take place towards it. However, we must be patient and wait to see what will happen because only history will tell.
To learn more about the project, we invite you to consult our various guides on EOS (insert link) that we have written on the subject. This will allow you to decide in a more informed way whether or not you want to invest in this project.