Where will EOS go in the future after removing the label of mainstream currency?

Since the beginning of this year, EOS has gradually become the target of complaints from many people in the currency circle. Of course, it is not only because of the currency price issue, but also because many long-standing grievances have erupted, causing many people to lose confidence in EOS. On September 7, OKEX announced that it would remove EOS from the list of mainstream currencies and replace it with BSV. This was a heavy blow to EOS. The price of EOS fell by more than 6%, and for a time, it was no longer in its heyday.

To talk about everyone's disappointment with EOS, it is not something that can be explained by just a few simple things. From the large number of gambling dapps that flooded EOS when it was first launched, to the final bubble burst, to the subsequent node disputes, and later, everyone's doubts about blockone's use of crowdfunding, the development of voice, and the subsequent transaction congestion cycle, to this year's mediocre coin price, we can see the current predicament of EOS.

OK Capital once helped the EOS community ecosystem, but now it is a different time.

DAPP’s short-term boom, Ethereum’s challenger

Although EOS briefly attracted a lot of attention in the DAPP field, in fact, no revolutionary applications have been produced on EOS. Of course, apart from the two well-known decentralized exchanges newdex and whaleex, and a few popular cross-platform blockchain games, there is nothing else that is bright and beautiful.

If there is anything that EOS can show off, it is currently only the development of the DAPP ecosystem. We can actually regard DAPP as a low-cost smart contract interaction system. Compared with the high-cost and slow interaction of Ethereum, EOS's DAPP can be said to be very easy to use. This is also due to its relatively high TPS, so it can provide a smooth experience in a short period of time. This time, the continuous high transaction fees and congestion of Ethereum's DEFI applications have also given EOS its own place in publicity.

However, blockchain is not just about the prosperity of DAPP, but whether it can give birth to revolutionary applications. For example, why DEFI can flourish on Ethereum, but seems to be a little withered on EOS. BM has said that EOS is the most suitable for DEFI, but now EOS's DEFI can't compare with Ethereum, or even TRON. This is also regrettable. In fact, the problem lies in the deepest level, that is, the allocation of crowdfunding funds.

Blockone's huge investment in US Treasury bonds sparks public outrage

If we talk about how to use crowdfunding funds in blockchain projects, I am afraid that 99% of the project owners will say that they will promote the development of the project. Of course, except for some project owners who run away, as long as they do something, there will be funds for project ecosystem construction. But for BM, they sold a large amount of Ethereum raised through crowdfunding, then exchanged it for legal currency, and finally invested in US Treasury bonds.

Some people say that the sale of Ethereum by Blockone caused the collapse of Ethereum 2018, and the cryptocurrency market entered a long bear market. The former prosperity was replaced by the bear market. Although this is part of the reason, it also shows that the EOS project is unfriendly to Ethereum.

Of course, the project parties received the funds, and logically, they should have hired more developers to continue development, but in fact, they directly bought U.S. Treasury bonds. This is unacceptable to crypto enthusiasts. Some project parties at most converted the crowdfunding funds into legal currency to pay employee development wages. This is mainly due to the foundation's management system and for the convenience of audits, but investing in Treasury bonds is obviously a bit unusual .

At the same time, some voices appeared in the market. It was mainly because everyone re-analyzed the EOS project and finally found a clue. It turned out that there was a rule that the funds raised by blockone crowdfunding were mainly used to develop the eosio software. After the development was completed, it was over. This rule was very important, which meant that blockone had completed the development of the eosio software according to the market crowdfunding needs, and they got the funds raised from the development crowdfunding for investment in their own company.

This is different from most blockchain projects. For example, the Ethereum project is a crowdfunding project led by Vitalik Buterin. The funds are controlled by the Ethereum Foundation and are used to build the Ethereum ecosystem. In contrast, Blockone has no legal obligation to build the EOS ecosystem because of their crowdfunding rules. They also have not set up an organization like the EOS Foundation. Instead, the community sets up such a foundation organization.

What is more noteworthy is that among the initial members of the foundation, there were no BM and BB from Blockone, only one former Blockone product vice president Thomas Cox, who has already left Blockone. This shows that Blockone is not very concerned about EOS.

Domestic nodes buy votes, foreign nodes withdraw, the game of Chinese capital

EOS’s voting problem is actually a deep-rooted problem. Originally, the 21 super nodes were much fewer than other projects, and it was rated as a centralized project. However, most people could not resist the fast speed and cheap transfer, so they did not have many opinions on this. However, based on the concept of fair competition abroad, they were dissatisfied with the practices of some domestic nodes such as buying votes, so they withdrew one after another.

After that, Chinese presence can be seen in all EOS nodes, and fewer and fewer people abroad are paying attention to the EOS project. Logically speaking, even if Chinese nodes control the EOS super nodes, as long as BM or BB is attentive, they can actually let foreign nodes contribute money and effort, and they still have the strength to take away a few super node positions.

But what everyone didn't expect was that BM and BB were not serious and looked indifferent, which caused the proportion of foreign nodes in the alternative nodes to drop a lot.

It would be good if BM and BB had directly developed the Chinese market under such circumstances, but they did not. They even made inappropriate remarks that angered the Chinese people on issues such as the new coronavirus at the beginning of the year. Although they finally changed their words under pressure from public opinion, it still caused psychological harm to many Chinese people.

It is precisely because of the inappropriate remarks about the new coronavirus that it has become the most critical turning point for the decline of EOS. Since March 12, most coins have actually rebounded to their previous relative highs, but EOS has been hovering around 2-3 US dollars, and its price is relatively weak.

Ok Capital, Newdex, Whaleex, Canon Community, etc. have all been fighting fiercely for super nodes.

VOICE expectations are dashed, DEFI is indifferent

Many people label BM as a cat-playing otaku, a person with low emotional intelligence, a technical expert, who gets bored with old projects and easily leaves projects unfinished. This is also clearly visible on VOICE.

Before VOICE was announced, BM started to hype up something big, so fans ended up waiting for a new social software. At that time, Facebook and Twitter were both very popular, and even his previous project, steemit, was a similar platform. It was obviously a reincarnation of the wheel, which was a disappointment for everyone, so the price of the currency plummeted.

Of course, the media were optimistic about it, after all, it was a way to save face. Before the product came out, no one could tell how it would perform. However, after waiting for more than a year, only a beta version came out, and China, which has the largest user market of EOS, was excluded. We do not deny that this kind of social software has related processes such as review in China, but how many people will use it if it directly excludes China's VOICE?

Then there was another wave of market crash.

Just in June, when DEFI started to gain momentum, blockone still didn’t seize the opportunity. Only newdex (a decentralized exchange and also one of the nodes) in the EOS ecosystem actively deployed DEFI, and then promptly created defibox and reaped great rewards from investing in DeFis. It also previously deployed a DEFI application that pledged EOS to generate USN stablecoins, which restored some dignity for EOS.

So what are BM and BB doing? BM said that the earliest DEFI application was made in his previous project BTS. EOS is naturally suitable for DEFI. This reminds people that BTS did pledge BTS to generate stable currency bitcny. At that time, it was difficult to deposit legal currency after 94. Some people used it, but not many people paid attention to it afterwards.

Then, the BTS community is now forking. First there was steemit, and then there was BTS. BM's coin seems to have a trend of forking. Maybe if we wait for three or four years, maybe EOS will also fork. This is not impossible.

EOS’s warning

For those who invest in EOS, it may be a tear of bitterness. The EOS milk king, who once reached over 500 after three waves and did not rule out the possibility of a sharp rise, has now remained silent. Even Captain Wang is seeking to open an exchange in the bear market. He also participated in Ethereum DEFI a few days ago. Princess Yuzu on Weibo went to play YAS at the beginning of the year. Yuzu currently has fewer and fewer cards in her hand, and her fans are also getting fewer and fewer.

Of course, there are opportunities. The only thing that may make a comeback now is DEFI. A few days ago, there was a small boom in DFEI on the EOS chain. Of course, this was also copied from Ethereum and Tron, but it unexpectedly led to a wave of additional issuance of the EOS version of USDT. If DEFI develops well on EOS in the future, it may fight side by side with Tron in the future, but it will be difficult to go further.

However, China's CCID Blockchain Research Institute has always been optimistic about EOS. In almost every public chain ranking, EOS ranks first, so much so that people in the currency circle jokingly call it: CCID Research Institute is the biggest "milk king".

Final Words

Someone has said before that investing is actually investing in people, and investing in projects is actually investing in the founders of the projects. For a "project producer" like BM, too many projects are not a good thing. Relatively speaking, Ethereum's Vitalik Buterin can give many people imagination. After all, he is still young and has no history of unfinished buildings. He has a long time to go. This is also an important reason why Ethereum still leads the blockchain trend even though its transaction fees are expensive.