What Is Happening to EOS’ Price?

EOS, News, Opinion

From April 17, 2018, to April 29 the price of EOS has risen from $8.73 to of $22.79 (a 161% increase). This makes it one of the few cryptocurrencies to reach an all-time-high in this economic climate, but why exactly has its price exploded?

EOS will be conducting a ‘token swap’ on June 1, 2018

EOS is soon to transition away from Ethereum’s blockchain and onto its own mainnet— currently, EOS is an ERC-20 token. On June 1, a ‘snapshot’ will be taken of all registered Ethereum wallets that contain EOS, and the tokens will be frozen (meaning that they can no longer be traded in any significant way). The EOS developers will then issue new EOS coins to all the registered wallets, and those coins can be used on the mainnet.

Token swaps and mainnet launches tend to increase the price of certain cryptocurrencies. This is mostly because traders and programmers alike get excited about new technologies that have the potential to be lucrative. The same is happening with Tron right now as its mainnet launch is on May 31— its price skyrocketed from $0.053 to $0.091.

There is hype around EOS’s launch

EOS has been in its ICO phase for around a year, which is significantly longer than most blockchain projects. When word of its release date became finalized, hype built around the project. EOS has managed to amass many long-term investors, something most ICOs fail to do. You can find a countdown to the launch of EOS here.

EOS will be launching voting tools

Another reason for the build-up of hype is that when EOS launches it will be providing governance tools, the likes of which have not been seen with other popular blockchain projects like Ethereum or Bitcoin. Unlike people like Vitalik Buterin and Charlie Lee, the EOS CEO Brendan Blumer and CTO Dan Larimer will be taking a hands-off approach. Rather than guiding EOS into a direction of their choosing, they have created a system that allows the community to choose the direction of the coin. While this may seem unimportant regarding price, those who are invested because of the technology are thrilled to be able to vote on serious decisions concerning the ecosystem.

Block producers are currently campaigning

As part of EOS’ governance tools, users can vote on which block producers they wish to have running the ecosystem. Block producers are organizations that act as stewards of the EOS ecosystem. They handle the maintenance of the blockchain. There are 21 block producer positions to be filled, and EOS users can vote on which producers they want running the system. This means that there are dozens of companies currently campaigning. Some of the candidates are promising to place large sums of money into improving EOS and funding EOS-based projects. This has attracted investors as the right block producers mean that the currency will see huge exposure and improvements on a monetary scale.

Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.

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