Tuesday, May 30, 2023

Why do many criticize EOS?


Recently, more and more criticism has been emerging about EOS, related to its revaluation, overvaluation, the incompetence of developers and insufficient decentralization.

When studying the platform, many experts have questions about the real possibilities of the project and its popularity. For example, Facebook took seven years to achieve a capitalization of $ 1 billion, and the EOS took only nine months. Investors invested 7.12 million ETH to buy tokens, which made ICO Block.one the most successful. The organizers were able to attract $ 4 billion without a “live” product, but only thanks to promises, a successful marketing campaign and the trust of investors.

Despite the fact that the initial placement lasted a year and the program code was repeatedly tested, it regularly finds serious errors that threaten the security of the platform. In addition, a few weeks ago the company’s mail server was hacked, and the launch of its own blockchain was stopped because of the insufficient number of voices of the owners of tokens to start forming the blocks. A few days after the resolution of this issue, the process was again frozen due to a serious system error.

Another criterion argument is insufficient decentralization of the project. They calculated that it would be enough to unite 21 owners to control the network, which could attract the attention of the SEC. Additionally, EOS smart contracts cannot interact with smart contracts of Ethereum, it is not known how the network will actually be scaled, there are still no cases of real use and functioning of applications running on the platform.

Despite the experienced team and access to huge resources, Block.one has so far only sold dreams. The first attempts at the independent work of the EOS are alarming investors and speak for themselves. Therefore, more often there are allegations that the project is overly overpriced, and its market value is overstated.

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