EOS.IO, a blockchain-based platform that aims to facilitate the horizontal and vertical scaling of decentralized applications (DApps), has been criticized for its controversial governance model in which just 21 block producers have most of the control over a multi-billion dollar digital asset network. However, EOS.IO’s native token, EOS, has surged by over 10% in the past 24 hours, according to data from CryptoCompare.
The cryptocurrency’s price shot up after it was announced on August 27th that its developers would be “building a voting system to help with the decision making” for the platform’s $35 million savings account.
No Plans Regarding EOS’s Savings Acccount
Block.one, a privately held company focusing on “high performance” blockchain technologies, created the EOS.IO savings account when it began developing the EOS platform in May of 2017. When the savings account was created, EOS’s developers did not formulate any plans regarding how its funds would be spent.
Tp decide where the funds should be invested (or used), the EOS team will be implementing a voting system that will allow the crypto’s community to make decisions regarding how the funds are to be managed. Most of the EOS community members are reportedly supportive of the new voting system, however, it may take some time before they collectively decide how to spend the funds.
Crypto Market Showing Recovery Signs
At press time, EOS tokens are up by over 10% and currently trading at $5.93, with a market capitalization of over $5.3 billion. As reported by CryptoGlobe, Bitcoin (BTC) price surged past $7,000 on August 28th and is currently trading at $7,082.91. This is a significant increase in the flagship cryptocurrency’s price, considering it had dropped below $6,000 around mid-August.
Moreover, it seems that cryptocurrency prices, as a whole, are beginning to recover with NANO, the “global currency”, surging by as much as 84% to $3.27 (per token), before correcting to around $3.07. South Korean firm ICON, which aims to develop communication channels between multiple blockchains (blockchain interoperability), also saw its ICX token surge by over 20% on August 27th to over $.96 but its price has also now corrected to $.90 at the time of writing.
Short-Term Price Movements “Don’t Tell Us Much”
According to recent comments from Litecoin (LTC) founder Charlie Lee, “it’s hard to predict [cryptocurrency] prices” and it’s also difficult to determine just how long a bear market will last, or how long it will take for digital currency prices to recover.
Despite the declining market capitalization of the cryptocurrency market, Lee noted that bitcoin and litecoin adoption had actually increased. Moreover, the MIT graduate said that while short-term cryptocurrency price movements “don’t really tell us much…in the future, the price will reflect the success of the [crypto]currencies].”