Blockchain platform EOS raised $ 4 billion and has fallen more than 30% since then
Between June 2017 and 2018, Block.one raised $4 billion through sales of its native cryptocurrency, EOS. More than a year later, the token associated with the Cayman Islands-based startup has lost over 30 percent of its value due to a massive price drop and a lack of genuine users.
The EOS to US dollar exchange rate is currently around $2.79 after reaching a high of $23.02 in April 2018. Like many other cryptocurrencies, EOS also fell victim to the massive dumping that occurred during the so-called crypto winter of 2018. But unlike Bitcoin , the benchmark cryptocurrency, many smaller assets were unable to revive a strong bullish price rally.
[amazon box="B07W5VWZJQ"]Low buying sentiment for EOS
As we enter 2020, it remains in a strong downward trend. This is particularly bad for EOS, a platform that was hailed as a crucial player in the emerging blockchain sector. As the WSJ noted in 2018, projects like EOS have attracted thousands of developers and investors to create decentralized applications (or dApps), but have failed to attract users.
This is the same factor that's hurting buying sentiment in the market. EOS developers need to buy the tokens if they want to build dApps on its blockchain. But the lack of users is causing those products to fail, which in turn is hurting demand for the cryptocurrency.
Tough times for investors
Investors who bought the first lots of EOS did not see demand drop. In fact, more and more users entered the market during the cryptocurrency boom after reports indicated an increase in dapp transactions on the EOS blockchain.
As it turned out, bot activity contributed to 75 percent of those reported transactions, AnChain.AI, an AI-powered blockchain ecosystem security company, reported in June 2019. EOS investors also suffered due to claims from that the EOS blockchain is still pro-censorship and centralized.
