Ohh how the mighty are failing...
I was there when it launched, I was there...watching the Livestream very attentively, I was excited for the possible future that it would bring, a faster future, a feeless future, a future with honesty and transparency, a future where I could be part of the governance. I was excited, but I'm not anymore! EOS has way too many issues...
EOS launched May 2018 with great promises! People were saying that EOS would be the Ethereum Killer, and after doing some research I really believed in it, with DPoS and few block producers the number of transactions that the network could handle was going to be enormous! The community seemed very knowledgable about how it worked and there were many people that reported on the status of development.
Not only this but the horizontal scaling of EOS would allow multiple EOS sidechains with millions of transaction, each sidechain would use EOS but also have their own token! There wouldn't be any chain forks because updates could be done on-chain, just freeze it and update it. Any stolen funds would also be retrieved by a selection of BP that would be voted in by the community. It looked like the perfect unison between code and humans...
It all sounded amazing, but the mighty have fallen really low... Let's look at some of the problems EOS has at the moment:
Governance
Governance is working as intended, but working as intended also leaves room for exploits. The top 21 block producers are now full of block producers that no one knows, some are only there because they pay voters for that position... and guess what, most of that money is coming out of paid position puppet accounts, puppet accounts are non top 21 Block producers but still with enough votes to get paid EOS, these puppets probably don't have any hardware..
With governance like this, there is lots of room for bad actors to attack the chain. There are only 21 block producers. If most of these 21 block producers are actors and producers that I don't know, how can I feel safe in buying EOS knowing that at any moment these producers that no one knows anything about can steal my EOS and dump it on the market without any questions asked? Achieving a 51% attack on EOS with governance ruined is way too easy... And with governance like it is now the chain doesn't feel secure, especially to build on top off...
And this is showing!
Dapps
EOS has some dapps, good dapps, like EOSKnights, and it's growing, but... with governance issues, dapps are moving away!
Whenever a developer is building a dapp, one of the most important aspects of building that dapp is which chain to build on top off. Choosing a chain is important, we are talking about a decentralized application that will be stored and run on a blockchain, the structure, the longevity and resilience of the blockchain is important. With governance issues how can a dapp feel safe in building on top off it? It can't... and it's showing!
Just a few days ago, Karma, one of the most well-known dapps on top of EOS, decided to move to WAX, and there are more dapps that have decided to move... either to WAX, or Worbli, or Telos, or LynxChain, or Meet.one,etc...etc... to one of the many MANY sister chains of EOS.
Without dapps on EOS, where will the demand for EOS come from? It won't... the demand will go down little by little and the price will go down little by little with it.
SisterChains
Sister Chains are basically separate chains that run the same software(eosio) that EOS runs on but with minor differences, everyone can launch a sister chain... but this is really bad, and the community doesn't get it!
Imagine if 10 new investors want to invest in the eosio ecosystem, but they don't know anything about the ecosystem, they will have to decide where to invest in, some will choose Worbli, some will choose EOS, some will choose Lynx, and some will choose Telos... Guess what? The money will be spread and the demand will never grow enough for the price to go up... and since these are inflationary chains the supply will keep increasing and increasing exponentially and the price will keep dropping and dropping, with a lower price per token also comes less hype and fewer enthusiasts. If this continues sooner or later the BPs won't have any money to pay for the hardware and the chains will have to be shut down (hopefully it won't come down to this).
The solution to this would be to unite under one mainnet with many sidechains(not sisterchains), so new investors knew where to invest in, the mainnet token, only after could they start investing in the sidechain tokens... but it seems people don't want to do this!
Last time I even tried to bring this up some guy attacked me saying that "I didn't get it" and that "I only wanted to pump my own bag"... I almost don't even have EOS anymore, not sure what I need pumping, actually, I'm unstaking my last $8 of EOS and selling them after publishing this post...
As long as the community keeps this mindset of having many sisterchains and letting the governance issues spread, investing in any eosio chain is a no no for me as an investor.
Spamming, EIDOS, and REX...
Since some weeks ago the mainnet has been clogged up because of EIDOS, people rented all the resources available from REX, which shouldn't even be possible, the price should have increased to infinite as the supply started to run out... and all these resources are going straight to mining EIDOS on the mainnet, a token that the community knows nothing about, not even the founders are that well known, the mainnet is clogged up and dapps, like Karma, don't have any resources to make transactions...
And guess what is worse, Karma actually bought and rented some EOS to make transactions for their users! Which is what dapps should do on EOS but aren't doing. If even dapps that bought and or rented EOS to make transactions aren't able to make transactions, the dapps that didn't get any EOS for their users before REX "closed" must be really screwed...
So, the mighty are falling, not sure if they will be able to bounce back or not, I would rather not be hodling any EOS with the amount of smoke that EOS currently has... if they are able to solve these issues I might rethink my position.
Technical Analysis:
If even with all of these Fundamental Analysis issues you still want to invest, I would wait for a weekly MACD crossover and then go in, the price is at the moment on a good buy zone in my honest opinion, but with the FA as risky as it is I would be extremely careful and wait for the weekly MACD crossover to be 99% sure that the most likely scenario would be for the price to go up.
Images Free Source - 1, 2,3,4,5,6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27 - Tradingview snapshots too.
Question of the day: Are you an EOS investor? What is your opinion about the current issues with it? Do you see the community overcoming these issues?
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