EOS Leads Crypto Market Selloff as RAM Complications Intensify

The cryptocurrency market has shed $20 billion over the past 24 hours, with EOS emerging as the biggest loser in the top-30. The coin is now trading at almost two-week lows after its top block producer shed light on the network’s growing RAM controversy.

EOS Price Levels

The price of EOS plunged 16% to to $7.23, its lowest since June 29. In the process, the coin’s total market capitalization has fallen from $7.9 billion to $6.6 billion over the past 24 hours. Trading volumes are down by roughly a third over the same period.

By comparison, the broader cryptocurrency market has declined 7.5% compared with Monday. The total value of all cryptocurrencies in circulation now sits at $253 billion.

EOS has lost more than 40% of its value since the beginning of June, far outpacing the broader market’s 23% drop over the same period.

RAM Issues in Focus

EOS’ PR nightmare intensified over the weekend after several block producers went offline over complications tied to RAM usage. EOS New York, the network’s top block producer, took to Twitter on Sunday to report the malfunction, which was mostly likely a configuration issue.

“Some Block Producers crashed when RAM usage on EOS exceeded 1GB tonight,” EOS New York tweeted on Sunday. “Either they only had 1GB or they did not configure their node to properly set it at 64GB. This is a violation of the regproducer agreement. EOS New York produced on schedule. We are still confirming details.”

It later added: “Upon further investigation we learned that this is less a regproducer violation and more a failure to adjust a default configuration on a plugin in their producing node.”

EOS block producers are equivalent to bitcoin miners.

As Hacked reported last week, the launch of the EOS mainnet has created a cut-throat environment for RAM – the resource dApps developers need to pay for each user account. The hoarding of this vital resource by speculation has triggered a surge in RAM prices, which has made account creation more expensive.

At the time of writing, the EOS RAM price was a little more than 0.43 EOS/KB, according to FeeXplorer. Prices peaked around 0.9 EOS/KB last week.

Higher RAM costs could limit new account creation on the EOS network and render airdrops virtually obsolete. When the EOS platform was being developed, creator Dan Larimer envisioned account creation would be a “nominal cost” – one that is “insignificant in comparison” to traditional business spend on each customer.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi