EOS (EOS) had one of the most bullish prospects at the beginning of this year. Even in the middle of the ongoing market correction, EOS (EOS) managed to mark a new ATH of $21.46 towards the end of April, 2018. At the beginning of April, EOS (EOS) received an unprecedented level of attention, one that would push it past its previous ATH reached before the correction. While most coins performed poorly in the correction, EOS (EOS) was making new highs. Institutional interest in EOS (EOS) was also at its peak during April and discussions as to how EOS (EOS) could be the âEthereum Killerâ was common on most crypto community platforms.
However, things took a bad turn when the price started to nosedive in the beginning of June. The problem with hyped up projects like EOS (EOS) is that if you buy near the top, you are at risk of losing more than 80% of your investment, at least for the short term. This happened with Ripple (XRP) and the same is now happening with EOS (EOS). As always, market psychology remains unaffected as good old greed rules in good times and fear in bad times. EOS (EOS) is currently down only 67% from its all time high compared to coins like Ripple (XRP) which is down 87% from its all time high. One can imagine the pain of all those hodlers on platforms like eToro or those that hold Ripple (XRP) in cold storage.
If history is any indicator, the same is going to happen to EOS (EOS) now. The coin recently ended up on eToro which saw a lot of investors rushing to buy this âEthereum Killerâ so as to climb on the next Ethereum (ETH) train. However, the problem with these investments is that you have to know when to get in and when to get out. If you are not good at doing that, then the least you can do is do your homework and find a project with solid fundamentals which you would not mind holding for the long haul.
EOS (EOS) could be a great project, who knows. Maybe it will become an âEthereum Killerâ. However, to invest in a financial asset, maybe and could be are not enough for the shrewd investor. One has to be certain that the asset they are going to invest in is actually going to turn around and perform well in the future. The problem with EOS (EOS) is that it has been at the centre of some serious controversies. For instance, the company still owns a ton of EOS (EOS) tokens. The kind of ICO that they held also raised some serious red flags. In addition to that, EOS (EOS) recently froze some accounts which also sparked some outrage and exposed the centralized nature of the project. Last but not the least, Dan Larimer, the founder of EOS (EOS) is known for forming and abandoning companies. He previously founded Steemit, Bitshares and now EOS (EOS). Most analysts as well as industry leaders have criticized Larimer for being more concerned about quick profits rather than long term commitment to a project.