EOS Has a $1 Billion War Chest – But Will Dan Larimer Stick Around Long Enough to Enjoy It?
On paper, EOS is a $6 billion company and the 14th largest cryptocurrency project in the world whose token changes hands for $10 a pop. It has raised over $700 million to date in the world’s longest running ICO, which began last June. By the time it’s done, the company, led by Dan Larimer, will have a $1 billion war chest at its disposal. The question is, will the charismatic founder stick around long enough to spend these riches?
Also read: Four Cryptocurrencies That Actually Meet the Definition of Vaporware
The Curious Case of the Man with the Itchy Feet
Dan Larimer is one of the crypto world’s best known entrepreneurs. The companies he’s founded – Steemit, Bitshares, and now EOS – are worth billions, making Mr Larimer as wealthy as he is successful. Everything the programmer-turned-visionary touches turns to gold. Then, once the Virginia graduate has gotten his latest platform up and running, he packs his bags and moves on to the next thing.
Fans of Dan Larimer’s work – of which there are many – see the EOS founder as an archetypal genius: blessed with too many ideas and talents to stay in one place for too long. Hagiographies portray Larimer as a visionary ahead of his time. If it wasn’t for Larimer jumping ship, the crypto community would never have had Steem or EOS. Thus, the loss to the projects Larimer leaves is the cryptocurrency world’s gain. Others aren’t so sure though, seeing the Bitshares founder’s itchy feet as evidence that his projects lack long-term viability. It’s easy to lead from the front when there’s money pouring in, but sticking around to build out infrastructure is what defines a true leader.
The Ethereum Assassin
EOS was heralded as “the ethereum killer”, but since Larimer launched his ICO in June 2017, ethereum’s value has multiplied five-fold and is the most widely used cryptocurrency with over one million transactions a day. To slay Vitalik Buterin’s “world computer” – or to even wound it – EOS is going to need a big axe. Ethereum is growing stronger with every passing day, while the only thing EOS has growing is its bank balance.
Uncapped ICOs: Fairness or Avarice?
Uncapped token sales are controversial, not least due to the mixed results recorded by the largest ICOs completed to date. The jury is still out on Bancor, which raised $153 million, while Tezos ($230 million) has been mired in lawsuits. Like Tezos, EOS investors may have to wait a while before they can use their tokens for their intended purpose. Critics have questioned the project’s viability, calling it “Delicious smoke and beautiful mirrors”. As one writer pointed out:
The EOS development cycle is incredibly long by industry standards. Although this might be a safety net on the founders’ part, ensuring that they can keep to their promises, this also leaves competitors with ample time to develop their own alternative solutions. If Ethereum manages to resolve its scalability problems in time, for example, it is unlikely that projects and developers used to the Ethereum ecosystem will rush off to join an unknown and untested development environment.
And then there’s Dam Larimer himself, crypto’s commitment-phobe. One of his biggest critics is former colleague Charles Hoskinson, who has ventured that Larimer “hasn’t finished a project yet.” To say that Hoskinson and Larimer no longer see eye to eye would be an understatement. After the EOS founder delivered a withering critique of Cardano, Hoskinson sarcastically responded: “It can be summarized as evil Charles stole all my brilliant work and didn’t cite me. DPoS is better. Their math stuff validates me. Their stuff doesn’t work. Peer review is what I say it is. I’m a genius”, before following up: “I also want to point out that Dan has repeatedly and publicly said that I have no technical skills and ride on the coattails of other people. The dude is frankly a loser.”
As a riposte, Hoskinson linked to a Bitcointalk thread from 2010 in which Satoshi Nakamoto famously retorted, in response to Larimer’s complaint that 10 minutes was too long for a block time, “If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.”
Business partners fall out all the time, and it is impossible to go through life without making a few enemies. Thus, Hoskinson’s thoughts on Larimer’s track record should be taken with a pinch of salt. One concern that has been raised about EOS pertains not the character of its founder, but rather his code. It has been alleged that EOS shares much of the Bitshares’ code, and is simply Larimer’s previous project rebranded. In EOS’ defence, there has since been extensive code uploaded to Github, albeit nothing in the last two months, and given the length of time it will take for the project to be developed, it is likely that the MVP will look decidedly different to Bitshares. As for when that MVP will arrive, EOS’ roadmap suggests that v 1.0 is likely to be in place by spring 2018.
A Smooth-Talking Genius
In person Dan Larimer is, by all accounts, affable, charismatic, and a born salesman. He presents a compelling vision of his projects and has proven extremely adept at drumming up enough support to turn them into reality. Larimer also appears to keep a carefully cultivated image, making it hard to gain an insight into his character. Someone has requested that Google remove specific search results for the entrepreneur, citing data protection laws known as the “right to be forgotten”.
Larimer used to maintain a regular blog that included posts such as “Why I Like Ethereum”. It hasn’t been updated since March 2016, presumably because Larimer has had more pressing matters to attend to. The name of his final post? “How to Launch a Crypto Currency Legally while Raising Funds”. In it he urges startups to “complete the currency and protocol prior to launch”. The EOS founder has certainly been adhering to that mantra with his own project.
Should EOS prove to be a success, Dan Larimer will deserve the sort of plaudits normally meted out to the likes of Vitalik Buterin. But as the case of Ethereum shows, projects overseen by a strong leader are at risk should the founder walk away. EOS investors will be hoping that this time Dan Larimer can be persuaded to stick around and enjoy his creation.
Do you think Dan Larimer will stick around to build out EOS? And does it have any chance of beating Ethereum at its own game? Let us know in the comments section below.
Images courtesy of Shutterstock and Steemit.
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US Government to Sell Bitcoin Seized from Dark Web Dealer
The US government has been approved by a federal judge in Utah to sell 513 Bitcoin and 512 Bitcoin Cash seized from an investigation involving Aaron Michael Shamo, a dark web dealer.
Also Read: Bitfury as Big Brother: Mining Company Tracks Bitcoiners
513 Bitcoin and 512 Bitcoin Cash
The U.S government is expected to sell all crypto assets of Aaron Michael Shamo（Shamo）following his recent arrest, including approx. $10 million worth of Bitcoin (BTC) and Bitcoin Cash (BTC).
On May 31, 2017, Shamo along with other dark web operators including Drew Wilson Crandall, Mario Anthony Noble, and Sean Michael Gygi were found guilty of conspiracy to distribute a controlled substance, aiding the importation of a controlled substance, intentional adulteration of drugs, use of the US mail in drug trafficking, conspiracy to commit money laundering, and engaging in monetary transaction in property derived from specified unlawful activity.
When the dark web operators were found guilty of the charges filed by the FBI, the Bitcoin and Bitcoin Cash holdings of the criminals were seized and moved to the custody of the United States Marshals Service (USMS).
The US government expressed its concerns over the high volatility rate of the crypto assets, suggesting they would rather sell the coins instead. Moreover, the US government stated that it is costly to securely store the seized coins in the official court document released and approved by Utah district judge Dale A. Kimball.
The vehicles (BTC and BCH) have been seized and are in the custody and control of the United States Marshals Service. Every month, the USMS is accruing $465 per month in storage fees for these vehicles. The total expenses for these two vehicles currently is $5,010.70.
How US Government Lost $2.36 Billion
Last October, it was disclosed that the US government sold 144,336 BTC at a price of $336 per bitcoin after shutting down the Silk Road. The total value of the seized coins were sold at $48.5 million. Had the government possessed them in patience, however, they would be worth $2.4 billion at current value.
In the next few weeks, the US government is expected to proceed with the sale of the 513 BTC and 512 BCH at the current value of around $9.4 million.
What do you think of the selling? What will be the opportunity cost if they’d instead hold for another three years?
Images via Shutterstock.
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Bitcoin Adoption Continues to Thrive Within Africa’s Borders
According to multiple reports this week the decentralized currency bitcoin is still booming in many African countries. From South Africa to the Sub-Saharan region, citizens from all walks of life are finding bitcoin beneficial. This is making domestic cryptocurrency exchanges and peer-to-peer trading platforms’ volumes climb while digital currencies are also selling at a premium.
Also Read: Bitmari Becomes First Bitcoin Company to Partner With an African Commercial Bank
Bitcoin Interest and Adoption is Trending Among African Millennials
The digital currency bitcoin is trending in Africa according to many reports and Google’s aggregated trend data. One particular group bitcoin is appealing to is African millennials, the columnist Catherine Byaruhanga from Uganda reports. For instance, a young resident from Kampala, Peace Akware, hopes her investment in bitcoin will grow enough for her to purchase a vehicle, and possibly even buy land some day. Another individual from Kampala, Martin Serugga, is teaching young millennials about cryptocurrencies in his weekly class that over 50 people attend. Serugga teaches the class how to trade cryptocurrencies against fiat used in the region.
Other reports detail that since the economic and political turmoil in South Africa residents from the area started looking to bitcoin. The exchange, Etoro saw a spike in users back in March when the region’s finance minister Pravin Gordhan lost his position.
“In South Africa, the number of new users trading bitcoin through eToro rose by 671% from January to the end of November last year over the same period in 2016, more than the 574% overall growth,” explains Mati Greenspan, an analyst for Etoro.
Thousands of Trades Taking Place Every Week and BTC Exchanges for a Premium
More populated areas like Sudan, South Africa, and Kenya continue to see adoption levels rise. The head of marketing for digital asset platform Luno, Werner van Rooyen, details that “thousands of trades are being made by South Africans every week.” Further, as news.Bitcoin.com reported a few weeks ago, the recent resignation of Robert Mugabe has caused BTC prices in Zimbabwe to spike exponentially higher than the global average. The tumultuous economy in Zimbabwe has caused the price of bitcoin to exceed global averages multiple times over the past year.
The digital security expert, Neil Blazevic, believes these emerging technologies can transform Africa just like the telecom system.
“With the right support for innovation, and collaboration Africa could once again leapfrog over the digital divide and become a market leader just like it did in the move from landline communications infrastructure to the mobile phone ecosystem,” Blazevic explains.
Localbitcoins Volumes in Africa Skyrocket Despite Warnings from Central Banks
The trend of citizens from multiple African countries has concerned the East African Community (EAC), an intergovernmental central bank organization composed of six countries in eastern Africa. The group is hoping to create a solitary currency for all six countries similar to the euro, but members believe “bitcoin interest” in Africa is hindering the process. Warnings about bitcoin have also stemmed from central banks like the Bank of Tanzania, Kenya, and other areas over the past few months.
In addition to these developments, the peer-to-peer platform Localbitcoins is recording all-time volume highs in South Africa, Kenya, and Nigeria. Since the summer the Localbitcoins trading in these three areas has grown significantly week after week.
What do you think about the growing interest and rising adoption levels in Africa? Let us know in the comments below.
Images via Fotogrin, Shutterstock, Coin Dance Volumes, Google Trends, and the Etoro platform.
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South Korea to Cooperate with China and Japan on Regulation
South Korean regulators are seeking cooperation with counterparts from Beijing and Tokyo to address cryptocurrency speculation. Six commercial banks have been targeted by Seoul authorities inspecting crypto trading. Korean experience is to help a possible trilateral approach to regulation.
Also read: Vietnam Expedites Cryptocurrency Legal Framework – Ready End of January
“Trial-And-Error” to Shape the Efforts
The Financial Services Commission of South Korea will be deepening cooperation with agencies from China and Japan in curbing speculative transactions. Deputy finance ministers from the Asian countries have already exchanged ideas last month, FSC’s chairman Choi Jong-ku revealed during a press conference. Seoul aims to “set up a detailed system of cooperation” with Beijing and Tokyo, Choi said, quoted by Yonhap News Agency. The nation’s top financial regulator briefed media about the bank inspection that will run through Thursday with the participation of the Korean Financial Intelligence Unit. He warned against what he called an “irrational trend” of investing in cryptocurrencies, noting the “ongoing fever of speculative investment”.
In Choi’s words cryptocurrencies are unable to play a role as a means of payment. “A virtual currency only triggers side effects”, the regulator educated reporters. Fraud, illegal fundraising, hacking, speculation and manipulation of market prices were mentioned in a long list. The government official left the door open to shutting down all cryptocurrency-linked businesses to minimize the aforementioned effects, according to the Korean Herald. Choi Jong-ku said the world was facing a “policy challenge pandemic” and added that Korea’s “trial-and-error” experience can help shape trilateral efforts to implement regulations.
Trust, but Verify the “Gatekeepers”
South Korea’s financial regulator is currently conducting inspections in six commercial banks, including Woori, Kookmin and Shinhan. Accounts of cryptocurrency traders have been targeted. Last month authorities ordered banks to stop issuing the so called “virtual accounts” used by cryptocurrency exchanges to manage their clients’ money. A new system to end anonymous trading and enforce real name identity verification on traders is to be implemented by the end of January.
The Korean official complained that all regulators could do within the present legal framework was to order inspections. Choi also noted that filling the regulatory vacuum would take time. Korean authorities are planning to impose stricter requirements for exchanges. Tougher sanctions for cryptocurrency related crimes are also on the way in a country that hosts some of the biggest providers of crypto exchange service. But strong measures against illicit acts will be enforced even before the legislation is revised, the regulator vowed, quoted by KBS Radio.
The exact sanctions that might be imposed on banks and exchanges remain unclear. Suspending virtual account services seems to be the only step authorities can take now and the FSC’s chairman confirmed that. Such accounts will be closed if inspectors uncover any illegal activities. Choi declined to comment on the new plans to tax cryptocurrency transactions and sanctions for tax evasion.
Do you think China and Japan will team up with South Korea to work out a common approach to cryptocurrency regulation? Tell us in the comments section below.
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Is Bitpay Bullying Other Bitcoin Wallets and Hurting Users’ Privacy?
Bitpay is facing a backlash against its decision to implement a controversial feature it says is meant to protect bitcoin users. The leading payment processor is accused of abusing its dominant position to bully wallet providers into supporting its plans, degrading users’ privacy and hurting the use of bitcoin altogether.
Also Read: Cryptocurrency Hedge Fund Headed by Ex-Goldman Sachs VP Raises $140 Million
Bitpay Power Play
Founded in May 2011 by Tony Gallippi and Stephen Pair, Bitpay is widely considered to be the largest bitcoin payment processor in the world today. The company is accused of leveraging this power to coerce bitcoin wallet developers to support its position or be left out of reach for many merchants.
The developers of the privacy-centric bitcoin wallet, Samourai, commented: “Users should stand up to this kind of arrogance and stand up for their privacy. Samourai has already started the process of contacting all vendors we rely on who utilize BitPay as a payment processor and informing them of our intention to switch vendors, as using Bitpay is no longer tolerable or feasible. We hope others join us.”
BIP70 Instead of Segwit
The Samourai team added: “We absolutely do not support Bitpay in agressively using their dominant position of market share to bully wallet providers into supporting their business plans or bully users into a system that degrades their privacy and the fungibility of bitcoin as a whole. Bitpay should focus on repairing their image and brand after the cataclysmic failure of the Segwit2x Fork they helped architect, instead of reinforcing their image as an out of touch bully looking to hijack the network for their own gain.”
Is Bitpay abusing its power or just looking out for its users? Tell us what you think in the comments section below.
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Markets Update: Exchange News from South Korea Brings the Bitcoin Bears
Cryptocurrency prices are sliding downwards since our last markets update, as the top ten digital assets are all seeing a loss of gains on January 8. BTC/USD markets reached a high of $17,200 on Saturday evening on January 6, but the value has dropped since then to a low of $13,900 per BTC. The price has since rebounded and is hovering between $14,800-$15,050 during this afternoon’s trading sessions.
Also read: Japan’s GDP Grows Due to Bitcoin Wealth Effect
FUD from South Korea and Coinmarketcap Data Brings a Price Storm
Bitcoin markets have seen a two-day decline since reaching its high of $17,200 this past Saturday. Yesterday afternoon the decentralized currency hovered just above the $16K zone, dipping to the $15,800 range a few times. On Monday, January 8, the price of BTC has sunk further taking most other digital asset markets with it. During the early trading sessions, (EDT) bitcoin prices touched $13,900 with around $15.8Bn in 24-hour trade volume. Many traders and cryptocurrency enthusiasts are blaming this week’s tumble on South Korea and its officials inspecting local banks tied to digital asset trading platforms.
Today the U.S. dollar is the top currency traded with BTC commanding 37 percent at the time of writing. This is followed by the Japanese yen (35%), tether (USDT 9%), and the South Korean won has dropped considerably to 4.7 percent. A few days ago when markets were more bullish, tether USDTs were averaging approximately $1, but since today’s dip, USDT is now $1.02. Additionally, tether has the third highest digital currency volume worldwide at the moment which happens consistently during dips.
Another thing to note is the cryptocurrency website Coinmarketcap has dropped South Korean exchanges from its aggregated global price averages. The website has left an asterisk next to each price that states “* Price Excluded.” Coinmarketcap dropping South Korean exchanges has made the website’s price data fall by over 100 billion, as the total valuation of all markets is only $721Bn after reaching a high of $850Bn.
Technical Indicators
Looking at the charts shows bitcoin core markets have dropped several legs down since yesterday evening’s trading sessions. During our last report, the two Simple Moving Averages has a nice gap between the 100 SMA and 200 SMA. Today things are changing as it looks like the two trend lines may cross hairs soon. This indicates there is more substantial resistance towards the path to the upside and sellers are in control. 12 hours ago RSI and Stochastic levels were showing overbought conditions but both oscillators are leveling out at the moment.
Bulls could quickly rebound from the current vantage point as order books show there’s not much resistance ahead but new positions are filling up. Look for more extended pit stops in the $15,300-15,700 territory. On the back side, there is plenty of foundational support in the $14,000-$13,800 range if bears managed to cause a more extensive market sell-off.
Overall Most Digital Currency Markets Are Seeing Deep Losses
Digital asset markets, in general, are all in the red seeing deep percentage losses today. Ethereum (ETH) has repositioned itself as the second highest market cap but markets are down 2.2 percent. One ETH is averaging $1,089 today after the currency hit an all-time high above $1,200. Ripple (XRP) markets are down significantly as XRP has lost its $3.40 price high. XRP’s price is under by 28 percent and the global average per token is $2.40. Bitcoin cash (BCH) prices are also dipping as the price per BCH has lost 18 percent. One BCH is roughly around $2,398 and markets are seeing $1.2Bn in global trade volume. Lastly, the fifth largest market valuation is still Cardano (ADA), but its prices are down 15 percent. ADA prices are averaging around $0.86 at press time. Additionally, the most traded digital currency pairs on the swapping platforms Shapeshift and Changelly is BTC/ETH by a landslide.
Bear Scenario: Bears currently reign the market right now and have managed to utilize the South Korean rumors coupled with fear, uncertainty, and doubt (FUD). If panic selling continues, the price could tumble below the $13.6K range. Watch for the Displaced Moving Average (DMA) to break $13,600 for some lower scalps.
Bull Scenario: Bulls have some work to do to get back well above $15K and $16K price territories. There’s some good size sell walls throughout these positions, but order books show it’s still manageable for a considerable rebound to take place. At the moment, long positions and big players are stepping off to the sidelines waiting for a better entry point.
Where do you see the price of bitcoin and other digital assets heading from here? Do you think cryptocurrencies will see more gains? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Images courtesy of Shutterstock, Pixabay, Shapeshift, Coinmarketcap, Reddit, and Bitstamp.
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