If you have been on Steemit for a while you have probably heard of EOS, the project founded by Dan Larimer (ex Steemit CTO). EOS is one of the most ambitious projects in blockchain and is set to be released in 2018, but what every crypto investor is wondering at this moment is What would be the right price for EOS once its released?
This sure is an impossible question to answer, but one can speculate by analyzing some key factors:
- EOS Future Total Supply
- Market Cap of Similar Coins
- Social Media Coverage = Hype Levels
EOS is undergoing a 1 year long ICO and, as it was expected, price has declined as the emission has grown. Total coins in circulation will be 1.000.000.000 EOS once ICO ends, so if the price remains at $0.50 for example, the total market cap of EOS will be one of 500 million dollars.
Now, let’s look at the market cap of similar coins, and by similar I mean coins that allow you to deploy smart contracts on their network. The first reference we should look at is Ethereum, the second largest crypto in the world with a massive 24.5 Billion Market Cap. Now, I don’t expect EOS to surpass Ethereum´s popularity any time soon after its release, but even Ethereum´s clone (ETC) has a market cap of 1 billion dollars. NEO is another interesting comparison, this coin reached a 2.5 billion valuations before the China FUD started.
The last point I always like to study is the Social Media Coverage, I do this because I am certain that in crypto (and probably in stocks too), hype is a huge factor that determines the price. EOS, has spent a lot of money in marketing, they attend most major conferences and have excellent communications channels (blog, telegram, reddit, etc). I suspect they will use all their resources to promote EOS release next year.
Taking all of this factors into account, it is my belief that EOS will have a total market cap of around 5 billion dollars once released, with the potential of reaching 10 billion within the first year of its birth. This will set the price of EOS at $5.
Source: eos.io
Summary
Future Market Cap of EOS: $5.000.000.000
Future price of EOS: $5
Note to Self: Buy EOS now for a 10x profit in less than 12 months.