EOS Price Surges Over 10% After Voting System Announcement For Its $35 Million Savings Account

Omar Faridi
  • 29 Aug 2018
  • /
  • In #EOS
  • A voting system will reportedly be implemented so that EOS community members can collectively decide how to spend the funds from the cryptocurrency platform's $35 million savings account.
  • Following this announcement, the price of the EOS token surged by over 10%.

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]."

Alleged Crypto Ponzi Scheme Moves Over $100 Million in EOS and XRP

PlusToken, an alleged Chinese cryptocurrency Ponzi scheme, has just moved well over $100 million worth of XRP and EOS, which could threaten a dump on the market according to blockchain sleuths.

Whale Alert, a service tracking large cryptocurrency transactions across several blockchains, pointed to several large EOS and XRP transactions. Earlier Whale Alert tagged a 26.3 million EOS transaction (worth $67 million) moving from PlusToken’s wallet to an unknown wallet.

It didn’t, however, tag two XRP transactions moving over $50 million worth of the third-largest cryptocurrency by market capitalization. Another monitoring service, Bithomp, tagged the XRP address the funds moved from, adding a “fraud alert” to it for belonging to PlusToken.

On social media Thomas Silkjaer, founder and CEO of xrplorer, confirmed the funds were moved by PlusToken, adding that the funds usually end up being laundered via cryptocurrency exchanges, and that they have around 150 million XRP on their accounts.

Late last year, PlusToken also moved its near 790,000 ETH stash to an unknown wallet, presumably in a bid to start moving the funds and hide their origin. PlusToken is accused of being a Ponzi scheme that got $3 billion from its users before collapsing, which could make it the biggest crypto Ponzi scheme to date.

It’s currently unclear whether PlusToken has managed to move the funds to any cryptocurrency exchanges, but on social media users are showing concerns regarding a potential dump on the market, as the funds could severely affect the prices of these cryptoassets.

A report published by blockchain analytics firm Chainalysis last year revealed the “criminals behind the PlusToken Ponzi scheme could be driving down the price of bitcoin when they liquidate their stolen funds via OTC Brokers.” Chainalysis’ report last year came as BTC fell below $7,000.

It’s believed PlusToken has been laundering its funds via these over-the-counter brokers, who then sell the funds on cryptocurrency exchanges. The token’s Ethereum stash is still sitting in the address it was moved to in December 2019, however.

CryptoCompare data shows that both XRP and EOS appear to be unaffected by PlusToken’s movements, as both tokens are up in the last 23-hour period.

eos and xRP.pngSource: CryptoCompare

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