The cryptocurrency industry is throwing up an interesting mix of events as Q2 gets underway. Bitcoin and other major cryptocurrencies started the year with looses straight out of the gate and the folks on Wall Street are probably scratching their heads in amusement as crypto traders and investors continues to struggle to make heads and tails of the market. It seemed as if cryptocurrencies will get back to winning ways after the tax season ended and Bitcoin booked a quick rally to a $9700 high to mark its highest trading price this year. Bitcoin has since dropped some of those gains – it seems Wall Street is right after all – as January goes, goes the rest of the year.
However, amidst all the uncertainty and general sense of doom prevailing over the cryptocurrency market, EOS is shinning bright with decent gains. EOS (also EOSIO) is a cryptocurrency blockchain and token that provides a smart contract platform for the creation of DApps (decentralized applications) and DAOs (decentralized autonomous organizations). Similar to Ethereum, EOS wants to become the go-to platform for enterprise clients that want to launch blockchain projects.
Why is EOS featuring prominently in cryptocurrency news?
EOS coin has becoming a constant feature in cryptocurrency news because it is booking gains at a time when the rest of the market are giving back their 2017 gains. EOS price is hovering around $18.06 as the token boasts of 112% gains in the year-to-date period.
EOS cryptocurrency is currently the fifth most valuable cryptocurrency by market valuation; yet, it is the youngest of the top 20 cryptocurrencies in the market. Many people have tried to proffer various explanations for the impressive rally in EOS. Some experts believe that EOS cryptocurrency is rallying because the market is reacting positively to the introduction of the EOSIO dawn 1.0 version. Others believe that the cryptocurrency is surging because on the tailwinds of its plan to release its mainnet sometime in June.
The Introduction of EOSIO 1.0 will encourage developers to start trying their hands ta building DApps on the platform. An increase in developer activity will in turn spur increased market interest – and the boom in EOS prices will become a self-fulfilling prophecy once market interest has been kindled.
Interestingly, some people in the blockchain community believe that the current performance of EOS is similar to the performance of Ethereum after news reports started encouraging developers to try out the Ethereum platform. For one, the launch of EOSIO 1.0 will push the EOS token to a new platform and transform EOS into a coin. Stakeholders in the cryptocurrency market always await a coin migration with positive anticipation; hence, there’s a decent odd that the price of EOS still has an exponential upside potential ahead. Speaking about the EOS potential, the EOS airdrop was an successful one – now the team have to prove themselves.
In the words of Ari Paul, the co-founder of cryptocurrency hedge fund BlockTower, in a Twitter post “Price observation: EOS is an ERC20 smart contract currently valued at $16 billion. If it repeated the run of the last two weeks, it would surpass ETH’s value, while residing on top of it. This is an observation; not at all a prediction nor investment commentary.”
It’s not all smooth sailing for EOS
Security researchers at LianAn Tech and its VaaS (Verification as a Service) research platform have uncovered a critical vulnerability within EOS smart contract infrastructure. The vulnerability could trigger an event such as the ‘batchOverflow’ event that crippled many ERC-20 tokens leading to the suspension of trading activities on such token on many exchanges last week.
However, it is still a little too early to know if the vulnerability will compromise the EOS.CYBEX collaboration or frustrate EOS’s promise of overtaking Ethereum as the leading smart contract platform. However, investors planning to take long term positions in the EOS coin might want to take some time to see how the EOS community reacts to fixing this vulnerability and preventing a similar occurrence in future. Cryptocurrency is still fighting a great deal of skepticism and the mass-market and the last thing the industry needs is another bug that could disrupt transactions. As EOS coin continues to grow, it might be a good idea to buy EOS, but only an amount that you can lose – as the price fluctuates.
This is a guest post made by Osher Deri. A Blockchain geek and crypto advisor, Osher holds an MBA in innovation and technology, speaks finance as a second language and believes smart contracts has the potential to disrupt the world as we know it.