EOS Prices Drop 10% as Market Evaluates Token Distribution
EOS prices declined sharply on Monday, leading a broad crypto downtrend following a strong weekend showing. Meanwhile, EOS traders evaluated early snapshot results that showed an uneven distribution of tokens following the network’s mainnet launch.
EOS Price Levels
The value of EOS fell by as much as 10.8% on Monday, reaching a low of $13.40 a coin, according to data provider CoinMarketCap. Prices later recovered to around $13.56 but were still off by 9.5% compared with the previous day.
At current values, EOS is capitalized at $12.2 billion with total trading volumes approaching $1.4 billion for the day. In volume terms, EOS is the fourth most popular cryptocurrency on the market with Huobi, OKEx and Bithumb accounting for the largest share of transactions.
The broader cryptocurrency market was worth $338 billion on Monday compared with a high of $355 billion over the weekend. All major coins within the top ten had reported declines.
EOS Rich List
The ten wealthiest EOS addresses made out with 49.67% of the total token supply, according to early snapshot results posted to Reddit. As CCN reported, less than 1% of EOS addresses hold 86% of the total tokens, which is perhaps contrary to the project’s stated objective of becoming the “fairest token distribution projected launched on Ethereum to date.”
To be a member of the top-ten, one would need at least 20,675,047 tokens worth more than $280 million.
The top-100 addresses hold nearly 75% of the total supply. When we arrive at the top 1,000, nearly 86% of the tokens are accounted for, according to the data set.
Block.one, the company behind EOS, has retained at least 100 million tokens worth approximately $1.4 billion. The company has assured its network it would not contribute to the ICO as doing so would be equivalent to a cash grab.
When the network launches, 163,930 registered addresses will be active. All of the addresses hold a positive balance.
Though it’s still to early to draw inferences from the data, the early snapshot results suggest that uneven wealth distribution is difficult to overcome. EOS developers have designed the token distribution model in a way that does not favor large buyers, but this does not stop them from acquiring a larger stake in the project.
EOS wrapped up a year-long crowdsale during the weekend where it raised roughly $4 billion, making it the most successful ICO to date. Version 1.0 of the new open source blockchain software is said to enable “businesses to rapidly build and deploy high-performance and high-security blockchain-based applications,” according to the the company’s official Medium page.
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.
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