The valuation of EOS (EOS) hit the same valuation as one calendar year ago on Friday, as the coin price continued to tumble in the wake of the latest failed market rally.
EOS losses have been out of step with the rest of the market, however, and the coin continues to mine new yearly lows with its latest tumble to $2.81.
The recent unveiling of plans for another cryptocurrency project by EOS creator Dan Larimer appears to have shaken the confidence of EOS investors. Another of Larimer’s projects, Steemit, also took a hit this week after being forced to lay off 70% of its staff in the wake of the decline of STEEM’s dollar value.
Dan Larimer Jumping Ship?
In a message exchange which was published on the EOS Reddit, Larimer had responded to claims that he was jumping ship from EOS. Larimer said:
“I will say it again: I am not leaving EOSIO or B1. In the process of working on EOSIO security and scalability, I stumbled upon a new set of trade-offs for a potential crypto token and I have merely been exploring whether there is a market for those trade-offs. EOSIO is the future of blockchain and each day our team at block one is making it faster, more secure, more scalable and more flexible.”
Larimer has handed oversight of the network over to the block producers of EOS, but has said he expects to remain close by. According to Larimer, the new project would not interfere with EOS, nor compete for its market share. He said:
“This hypothetical token would be immutable, non-programmable, and limited to a currency role. It would in no way compromise the much larger use cases for EOSIO applications.”
What’s the Problem?
The idea of an entrepreneur picking up a new project is hardly controversial, however social media’s reaction to the news shows a healthy skepticism regarding Larimer’s never-ending list of cryptocurrencies.
Bitshares (BTS) and Steemit (STEEM) preceded the creation of EOS, which was privately developed by Block.one – the firm for which Larimer is the CTO. Many believe Bitshares’ development was neglected to the coin’s detriment when Larimer moved on to Steemit.
Steemit has also been doused in controversy since its inception, and recently laid off 70% of its staff due to the decline in the dollar value of STEEM.
The new coin, reportedly titled ‘MonerEOS’ by Larimer in a public Telegram channel, has not been well received by the crypto community. In fact, Larimer himself wrote:
“Crypto people will hate it.”
EOS Price Hits New Low
The value of EOS hit a new yearly low on Friday, sinking to $2.81- the same valuation as November 30th, 2017. That puts the coin on 23% losses for the week, and 50% for the month.
EOS has been out of step with the market in the last few weeks, and is the only major alt to continue to hit new lows after the recent rebound.
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.
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