Trade Recommendation for EOS May 2018

Trade Recommendation for EOS May 2018

The fantastic climb in price for the youngest of the top-ten cryptocurrencies by market cap, EOS, has sent the coin-market into a frenzy of speculation lately. With the release of their main net due June 2nd, participants in the space are hodling this crypto-come-lately with the hopes of a new blockchain rivaling the likes of Ethereum. And it may do just that. However, when evaluating the specifics behind the jargon of whitepaper doublespeak commonly found littering the websites of overvalued cryptocurrencies, there may be a few good reasons to take your gains, assuming you haven’t just bought into this shot-in-the-dark lottery ticket of a product.

EOS (which stands for nothing, and whose founders encourage others to create the meaning behind the abbreviation) has indeed met key elements of their roadmap in the first quarter of 2018. With the successful tests of Dawn 1.0 – 3.0, the developers behind the tech are looking to capitalize on their momentum with the release of EOSIO 1.0, creating a unique blockchain for developers, dapps and the scalable transactions necessary to dominate the space. And while the chatrooms on your favorite social media sites are filled with the voices of overly enthusiastic nerds believing they’ve found the one-crypto-to-rule-them-all, you have the right to remain skeptical going forward.

Despite the words of EOS enthusiasts who insist on an unproven ability to scale on demand (sometime in the future), the EOS team plans on releasing EOSIO 1.0 with the ability to handle a measly 1000 transactions per second (according to their website). And while that by itself should be considered a fantastic accomplishment in the decentralized world, it is still too small to be considered worthy of the recent price increase. Unless the team comes out with a breakthrough in processing speeds incredibly soon after the release, I expect the price of this crypto-coin to have a hard time sustaining the gains leading up to their main net drop.

Another reason to remain skeptical of the team’s delivery has everything to do with timing. The unfortunate timing behind the chosen date of June 2nd puts the EOS blockchain squarely behind another strong competitor in the space. I’m talking, of course, about Tron (TRX). Tron (TRX), Justin Sun’s brainchild, is set to release its own blockchain two days ahead of the EOS main net. Coming strongly off of its own doubling in fiat value, the Tron community is filled with exuberance from an onslaught of exciting developments. From the constant realization of new partnerships (expanding its user base to over 100 Million people) to the hiring of extremely talented developers, Tron (TRX) is ready to go head to head with any blockchain competitor that dares raise their head above the water line. And while EOS has a few talented people behind their tech as well, they don’t look at all ready to go toe-to-toe with this champion of decentralization.

While EOS struggles to keep up with stronger and faster competitors, the price of their coin will likely sink with the expectations of their user base shortly after the hype of their main net wears off. And while I have no doubt that this newest player on the block-chain will innovate their way into the hearts of investors for years to come, the current valuation will likely have a hard time sustaining the gains realized over the past few weeks. And in anticipation of a stagnating or indeed sinking value after the release of EOSIO 1.0, this skeptical reporter has an abbreviation or two for the three-letter namesake given to this newest crypto-darling. My favorite so far: Every One Short.

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