The EOS network promised to be fast and innovative - but a bug in its consensus protocol saw it freeze completely for about five hours on June 16. This has caused jitters in the community, given the size of the EOS project, but also doubts whether the ecosystem would be able to run distributed applications as promised. The post-launch glitch caused EOS skeptics to continue criticizing the project for promising too much and launching without a testnet.
The consensus problem led to a patch release from Block.One, which was speedily accepted by block producers. But some believe such consensus flaws may happen in the future.
https://twitter.com/lopp/status/1007991691100516353
The trouble for EOS happened just a day after the network received the threshold 15% of votes. Since then, a total of 21.9% of tokens have voted. One of the problems is that a lot of tokens are locked on exchanges, and only a few exchanges have a voting mechanism in place. Without a mainnet, EOS owners on exchange wallets had no way of withdrawing the tokens in order to vote.
The other criticism for EOS came from Jackson Palmer, founder of DogeCoin. He discovered that newcomers to EOS may need to pay and ask another EOS member to help them create an account:
https://twitter.com/ummjackson/status/1008091424238157825
The price of roughly $3 to create a new account, plus the need to have a user create those accounts, means adoption of EOS for newcomers may be slow, due to cost and technicalities. Even buying EOS on an exchange is not a solution, since it cannot be withdrawn to a private wallet. Thus, from a simple ERC-20 token, the EOS digital asset has become one of the more difficult coins to use, at least in this initial stage.
Security is also an issue, according to the CEO of Hosho, Yo Sub Kwon:
“The most important focus for investors and developers should be around the security of the currency itself. If that were able to be manipulated or damaged that would have grave financial consequences for Block.one and the entire EOS community leading to a fall in confidence and support.”
The other concern about EOS is outright price manipulation. While Block.One has significant funds in dollar terms, those are actually denominated in Ethereum. There are concerns that the EOS project may receive support by suppressing the ETH market price. The EOS price has been surprisingly resilient in market shakedowns, standing at $10.30, down around 8% net this week.
!EOS!
But the trading profile for the EOS digital asset keeps changing. Only 7% of trades are against Ethereum - while 38% of all activity is dependent on Tether (USDT) pairs, making EOS one of the assets most uncoupled from the price of Bitcoin. The additional Tether liquidity, seeking a promising project for returns, has landed on EOS, and keeps supporting the price, ensuring consistent daily volumes. Thus, while EOS is far from being the promising new network for a new app model, it remains one of the most traded assets, with robust volumes and possibility for speculative gains.
This article appeared first on Cryptovest
