EOS resumed its descent on Monday, unwinding from last week’s ten-month high after traders bought the rumor and sold the fact of a “big announcement” that came from Block.one, the platform’s developer. The multi-billion-dollar startup announced Sunday it will launch a new social media platform that could disrupt the current social networking paradigm dominated by data cartels like Facebook.
EOS Price Update
Since peaking at $8.59 on Friday, EOS’ price has pulled back sharply over the past three days. At the time of writing, the cryptocurrency was valued at $7.42, down 5.8% on the day and 13.6% from last week’s peak.
The pullback was widely anticipated after EOS entered extremely overbought conditions. The Enterprise Operating System returned a whopping 158% through the first five months of 2019. Only four other cryptocurrencies put up bigger gains.
At current values, EOS has a total market capitalization of $6.8 billion, putting it in sixth spot in the active market rankings. Last week, EOS briefly overtook Litecoin (LTC) as the fifth largest cryptocurrency.
Despite the recent pullback, EOS has already paved the way for bigger gains in the near term. The outlook is overwhelmingly bullish, with traders now eyeing $10.00 as the next major inflection point.
Block.One to Launch Social Media Network
Block.one, the company behind the EOS public blockchain, announced Sunday that it plans to launch a new social media network. Dubbed Voice, the platform seeks to transform how social networks interact with users.
The new platform includes a “special authentication system” that weeds out bots and spam accounts, ensuring that each user is an actual person. Unlike current social networks like Facebook, Voice intends to safeguard consumer data and prevent algorithms from dictating what we see.
“The truth is, current social media platforms are designed to use their users,” Brendan Blumer, CEO of Block.one, said on Sunday in opening remarks at a company event in Washington, D.C.
“Just look at the business model. Our content. Our data. Our attention. These are all incredibly valuable things. But right now, it’s the platform, not the user, that reaps the reward. By design, they run by auctioning our information to advertisers, pocketing the profit, and flooding our feeds with hidden agendas dictated by the highest bidder. Voice changes that.”
Block.one teased its social-media aspirations in the days leading up to the B1 event. According to Jacob Cantfield, the company aggressively bought back shares prior to the event.
EOS has gone down as the most successful crowdsale of all time, with Block.one raising $4 billion for the project. The amount was raised over a year-long initial coin offering (ICO) that some believe violated federal securities laws.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.