EOS: Investors hoard majority of tokens, it drops crypto price by 10%
EOS price went down sharply on Monday. Meanwhile, the early snapshot results were evaluated by the EOS traders and they found uneven distribution of tokens post the mainnet launch.
The value fell by 10.8%, reaching a low of $13.40 a coin, according to data provider CoinMarketCap. Later, the prices recovered a bit to around $13.56 but still off by 9.5% as compared to the previous day, Hacked reported. According to current values, the crypto is capitalized at $12.2 billion. In terms of volume, however, EOS is the fourth most popular cryptocurrency on the market.
According to the early snapshot results which was posted on Reddit, ten wealthiest EOS addresses made out with 49.67% of the total supply of the token. According to a CCN report, less than 1% of EOS addresses are holding 86% of the total tokens. It is contradictory to the project’s objective that states of becoming the “fairest token distribution projected launched on Ethereum to date.”
Reportedly, to be a member of the top ten, one needs to hold minimum of 20,675,047 tokens which is worth over $280 million. According to the data set, top 100 addresses hold almost 75% of the total supply. The company behind EOS — Block.one — has retained around 100 million tokens worth $1.4 billion, approximately. Block.one has assured that its network would not contribute to the ICO because doing so would be equivalent to a cash grab.
It’s too early to say how things will turn out in future but the early snapshot results suggest that uneven wealth distribution might be difficult to overcome. Though the developers have designed their token distribution model in such a way that it doesn’t favour wealthy buyers but that doesn’t really stop them from acquiring large stake. After a year-long crowdsale, EOS wrapped up by raising roughly $4 billion, turning it into the most ICO till date. Around 163,930 registered addresses will be active when the network launches. All the addresses hold a positive balance.