Is EOS Set For A Slide Based On Auction Statistics?
The EOS networks quickly approach its launch – however, the market price of the asset has been at crossroads. After the latest slide in overall market prices, EOS has shrunk to around $4.60, prices unnoticed since November and before the series of pumps.
Now EOS is at a crossroad as the daily auction price continues to slide for the past few days and the market price is no longer profitable in comparison. Also, while some coins are becoming luring buying opportunities, in the case of EOS, the currently relatively low price may not promise another price spike.
The EOS digital asset will progress for a while with the daily auctions, but what is the fair price?
There have been rumors that the EOS project may have been buying its own coins at the auctions, then re-selling them on the open market. However, in March, this opportunity is no longer profitable. This plainly means that the auctions don’t get “recycled” Ethereum pumped into them, and the price may continue to drop.
At the highest, EOS auctions saw a spike to more than 20,000 ETH invested, while now the daily amount has fallen to around 17,000 ETH. For March 18, the auction price has reduced to around $4.52, almost on par with the market price.
Is EOS crashing Ethereum? Well, EOS has been accused of a long time depressing the price of Ethereum with regular sales. The latest drop of ETH below $500 was also associated with a large amount of ETH moving from the EOS wallet into exchanges. ETH since recovered to $533.66.
A few believe EOS is not the only ICO project cashing out. Still this time, the platform, its purpose to become “Ethereum Killer”, has acted in an already unstable market, crashing the price in July as well.
In theory, after the launch of the main net, EOS will no longer desire gas prices for Ethereum. The utility of the EOS token is also unknown. Therefore at this moment, EOS may see a further price slide, or most likely, a crash. The project is sitting on a lot of Ethereum, an estimated 3.4 million ETH, potentially continuing to affect the market by cashing out.
