EOS ICO is a Ponzi Scheme/Live Gambling Scam?

nsepia(31)

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Hello Steemit community. This is is my first post here. I felt compelled to write this article to inform other new investors of the inner workings of the EOS ICO.

EOS ICO

If you're not yet familiar, EOS runs on an Ethereum contract and has a very unique distribution model. For the available distribution periods, there will be 2 million tokens distributed every day, for the next 341 days based on the number of contributions.

What this basically means is that you're in the blind about how much you're paying for an EOS token.

SCANNING THE NETWORK

I've found that you can use http://eosscan.io to see the current token price based on the price of ETH/number of contributions. It's a great tool which scans the ethereum network for the contract address for incoming contributions.

BUT... even when you think you know what you're doing, you might actually be falling for a gambling scam. Here is a screenshot I captured 1 second before the end of the 36th period:

It shows that 14,033 ETH has been sent to them.

Here's what the eos scan shows:

Over 16,000 ETH, which came out to a loss.

NOT SO ANCIENT PYRAMIDS

Here's where the Ponzi scheme comes into play:

EOS has partnered with Bitfinex
Bitfinex has the most market share for EOS in pairs such as EOS/ETH, EOS/BTC, EOS/USD (source: https://coinmarketcap.com/assets/eos/#markets)
There have been suspicions of EOS pumping their own tokens by using the Ethereum they receive to buy back the EOS that they granted to participants (typical Ponzi scheme tactic)

By tracking the following transactions you can see that Ethereum from the ICO has been going into a Bitfinex hot wallet: https://etherscan.io/address/0x9937dbb2128b55c44d8af7bf36fd76796a814cf4#internaltx

Bitfinix wallet.png

PUMP IT UP

Many people speculate that most likely the ETH is then used to pump EOS, because let's be real - who wants to buy a coin that is coming straight out of an ICO when the ICO is still active? If you say traders then I would argue that there a much higher gains to be made from other crypto, especially now.

All-in-all it seems like a very sketchy operation.

Maybe that's why Daniel needed someone to protect him at the Consensus

I don't ever see Vitalik with a bodyguard ;)

Let me know your thoughts and please keep in mind that this isn't an accusation but rather a collaboration of mine and other members' thoughts and feelings in the crypto community.