EOS (EOS) has been on a steady rise against Ethereum (ETH) since November 2017. Institutional interest in the project has been increasing and the price has continued to reflect that. However, the real interest in EOS (EOS) surfaced when the cryptocurrency openly declared war on Ethereum (ETH) and announced that it will no longer be running on the Ethereum blockchain and that it should be perceived as an Ethereum competitor, not an Ethereum project or just another ERC20 token.
While EOS (EOS) has done enough to prove its mettle in the blockchain industry, it does not want to stop there. For long, EOS (EOS) has been dubbed as the “Etheruem Killer” and now it seems like the cryptocurrency is on its way to prove that, quite literally too. As many of you might be aware, EOS (EOS) conducted its ICO on Ethereum (ETH) and ended up raising more than 5,000,000 ETH, present day equivalent of over USD 2.6 Billion. EOS (EOS) held those funds under different accounts and has been exchanging some amounts from time to time to pay for expenses.
However, the real shocker was yesterday’s EOS (EOS) dump of Ethereum (ETH) on Bitfinex which caused a flash crash that took many by surprise! Ever since early April, EOS (EOS) has been continuously dumping ETH through its parent company, Block.one. The total amount of Ethereum (ETH) dumped for April and May of 2018 amounts to over $900 Million or 1,268,000 ETH. It should be noted that EOS (EOS) still holds 916,000 ETH in one wallet, EOS-Owner and another 237,000 ETH in a wallet, EOSCrowdsale. This puts EOS (EOS) in a strong position to give Ethereum (ETH) a tough time and pull it back the moment it starts to turn bullish, now that EOS (EOS) is a direct competitor of Etheruem (ETH).
To think that a blockchain project like EOS (EOS) could resort to such criminal schemes to manipulate the price of another asset without any fear of punishment or prosecution is extremely disappointing. To add insult to injury, EOS (EOS) just decided to dump its coins on Bitfinex rather than brokering an OTC (over the counter) deal with an interested offline party. The motive behind this move appears to be short term financial gain as well hurting Ethereum (ETH) which can be clearly seen on how ETHUSDSHORTS on Bitfinex spiked more than 20% yesterday in anticipation of Ethereum (ETH) dumps. As long as EOS (EOS) remains a competitor of Etheruem (ETH) and as long as it has access to such a large amount of Ethereum (ETH) that it can dump at any time on an exchange with impunity, Ethereum (ETH) investors will continue to be concerned.
As for EOS (EOS), the price has been trading in a falling wedge for quite some time now. Its mainnet launch on June 2, 2018 might give it the push it needs to break out of the falling wedge and continue making new highs for the year. Whether the reason behind EOS (EOS)’s dumping of Ethereum (ETH) 5 days before its mainnet launch was to prop up the price before and after its mainnet launch or to contain selling from post launch profit taking remains to be seen but such nefarious practices to manipulate the market need to be curbed immediately if the blockchain industry is to prosper.