The massive pump recorded from EOS in August when its price rose to a new high at $1.948 from its monthly low at $1.190; offering over 48% ROI to investors amidst the bear season, had attracted great attention to this coin. Many investors now seek to understand the reason for this massive pump from EOS to know if they still have the opportunity to invest in EOS and how sustainable this Crypto project is. Well, this work has done justice to the major reason why EOS pumped lately. You will also learn from this work the advantages and disadvantages of buying EOS.
What is EOS?
EOS is the native token of the EOSIO Blockchain used for running smart contracts on this Blockchain. The coin was created in 2017 by block. one company and has since then risen to become the 34th most valuable Cryptocurrency with a market capitalization of $1.5 Billion. EOS aims to become the host blockchain for all dApps innovations using its delegated proof of stake (DPOS) model which makes it very easy and cheaper for running smart contracts on its blockchain.
Why did EOS pump massively in August?
The major reason why EOS pumped more than 48% in August could be attributed to the success recorded by the owners of this project in resolving the court case filed by investors against their token – for failing to register their project with the US law enforcement agency known as SEC during their ICO as security for wealth storage while offering same to US citizens.
In May 2020, investors gathered and filed a suit against Block.one company after they raised over $4 billion from their project during their ICO without registering the same as Securities with the SEC. The company was further accused of making false claims about their projects and redirecting the money raised from their ICO to personal use.
To redeem the case, Block.one reached a settlement deal with the investors to pay $27.5 million to them to quench the matter and allow its developers more time to focus on the project.
However, the company recorded a great success on August 18, 2022, after the presiding judge in Southern New York District dismissed the demanded $27.5 million settlement charge by investors.
Added to this, the CEO of EOS Foundation, Yves La Rose, further tweeted on his Twitter page that the company will be rebranding the EOSIO blockchain ahead of the completion of its hard fork – which would take effect on 21st September 2022.
The news of an imminent rebranding for the EOS blockchain and the dismissal of the protracted court case between the company and its early investors had attracted so many investors to this project who feel that the previous barriers holding this coin from pushing higher have now been removed giving room for higher returns on this coin ahead of the rebranding next month.
Consequently, EOS pumped massively within this period especially on 18 August to create a new high at $1.948 marking an over 48% ROI from its previous monthly low at $1.948. Investors are all the more hopeful for more gains from this coin notwithstanding the short retracement that set in after Powell’s speech on Friday which affected the performance of every crypto asset.
Advantages of buying EOS
- Has potential for future price growth.
- Offers rewards for staking.
- Very volatile with high trading volume.
- Price is currently low.
Disadvantages of buying EOS
- All Cryptocurrency investment bears risk
- There is no guarantee of profits
- Fees are charged for transactions