The EOS network is approaching its launch - however, the market price of the asset has been at a crossroads. After the latest slide in overall market prices, EOS has shrank to around $4.60, prices unseen since November and before the series of pumps.
Now, EOS is at a crossroads, as the daily auction price has been sliding in the past few days, and the market price is no longer profitable in comparison. And while some coins are becoming attractive buying opportunities, in the case of EOS, the currently relatively low price may not guarantee another price spike.
There has been commentary that the EOS project may have been buying its own coins at the auctions, then re-selling them on the open market. In March, however, this opportunity is no longer profitable. This also means that the auctions do not get "recycled" Ethereum pumped into them, and the price may continue to drop.
At the peak, EOS auctions saw a spike to more than 20,000 ETH invested, while now the daily amount has fallen to around 17,000 ETH. The auction price for March 18 has fallen to around $4.52, almost on par with the market price.
EOS Crashing Ethereum?
Additionally, EOS has been blamed for a long time for depressing the price of Ethereum with frequent sales. The latest drop of ETH below $500 was also attributed to a large amount of ETH moving from the EOS wallet into exchanges. ETH since recovered to $533.66.
Regarding the $ETH dump. 50k $ETH was deposited on Bitfinex 12 hours ago coming from the $EOS crowdsale. thanks @claptrapxl https://t.co/vYHTFwQgKn
— WhalePanda (@WhalePanda) March 18, 2018
Some believe EOS is not the only ICO project cashing out. Yet this time, the platform, aiming to become "Ethereum Killer", has acted in an already jittery market, crashing the price in July as well.
In theory, after the launch of the main net, EOS will have no need for Ethereum for gas prices. The utility of the EOS token is also unknown. So at this point, EOS may see a further price slide, or even a crash. The project is sitting on a lot of Ethereum, an estimated 3.4 million ETH, potentially continuing to affect the market by cashing out.
This article appeared first on Cryptovest
