Members of the EOS ecosystem, a blockchain designed to run decentralized applications or DApps, are expressing their displeasure with the former developer of Block.one. As a result, they formed their own organization and elected a new leadership in an effort to develop the network.
On Cointelegraph, Yves La Rose, the “publicly elected CEO” of the new EOS Foundation, made the following prepared statement during a virtual conference:
“There is no sugar coating, EOS because it fails. For the past three years or so, there has only been a drop in market capitalization and token value. When we look at EOS versus the rest relative to other cryptocurrencies, especially at the Satoshi level, EOS has been a terrible investment.” It was a terrible economic, temporary and social investment. The truth is that many people no longer want to be associated with EOS due to its tarnished reputation. EOS, as it is, is a failure.”
Block.one is a Cayman Islands company that was the original developer of EOS Network. In 2018, the company sold 900 million EOS tokens for a dividend of over $4 billion in its first coin offering (ICO), the largest in the world at the time, despite the lack of a functional product. The following year, Block.one submitted $24 million to the SEC for allegedly selling unregistered securities as part of its ICO. Token sales are also facing accusations of market manipulation.
La Rose told Block.one that:
“Another thing to look for when it comes to the roadmap is that we can no longer rely on Block.one to support and guide the development of EOSIO. They have lost all the major developers and stopped being a blockchain development company to become an asset management company.”
Despite the negative outlook, EOS blockchain development activity appears to have remained stable. According to block researcher bloks.io, the most prominent DApp on the EOS network is the decentralized exchange Alcor, with a 24-hour trading volume of $44.6 million. In second place is AtomicMarket, a market for non-fungible tokens with transactions worth $3.81 million in the last 24 hours.
La Rose closed the board with the following comment:
“Today is the root of what EOS can be. No more excuses, no more hindrances. We have everything we need. What’s next for EOS is just what we do.”