From $260 billion to $241 billion, the valuation of the cryptocurrency market has dropped by over $19 billion in the past 24 hours, as major cryptocurrencies including bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS fell by large margins.
For a third day in a row, EOS, the delegated proof-of-stake (PoS) network based on the Ethereum blockchain protocol, has recorded the biggest loss amongst major cryptocurrencies. On June 24, EOS recorded a loss of 13 percent, while BTC, ETH, XRP, and BCH fell 3.5%, 4.6%, 5.8%, and 8.5% respectively.
Why the EOS Fall?
The decline in the price of EOS can be attributable to a wide array of factors but in summation, the reasons behind the major EOS drop can be shortened to two main components:
- Abnormally large rally prior and after the mainnet launch
- Recent controversy around EOS constitution and centralization
Yesterday, CCN reported that Cornell professor Emin Gun Sirer and smart contracts pioneer Nick Szabo criticized EOS for its bugs and characteristics that point toward network centralization.
Specifically, Szabo criticized the ability of EOS to suspend user accounts, confiscate funds, and auction accounts if user accounts remain inactive for long periods of time. Szabo stated:
“In EOS a few complete strangers can freeze what users thought was their money. Under the EOS protocol you must trust a ‘constitutional’ organization comprised of people you will likely never get to know. The EOS ‘constitution’ is socially unscalable and a security hole.”
EOS controversy intensified when EOS suspended 27 accounts with no reasons. In a document entitled “Emergency Measure of Protection Order (ECAF),” with abnormal authoritarian wording, EOS team said, “it is hereby ordered that the EOS Block Producers refuse to process transactions for the following accounts and keys indefinitely,” because the 27 accounts did not process transactions for long periods of time.
Prior to the launch of the EOS mainnet in early June, the price of EOS increased from $6 to $23.1, by more than 285 percent. The unexpectedly large increase in the value of EOS led the fall of EOS to intensify, and ultimately led the cryptocurrency to record a bigger loss than other major cryptocurrencies.
In the past month, the price of EOS dropped from $15.5 to $7, by 55 percent within 30 days. Since the price movement of most cryptocurrency and tokens are primarily influenced by bitcoin and Ethereum it is likely that EOS and other tokens will continue to fall in the upcoming days.
The Relative Strength Index (RSI) of EOS remains at 27.8, demonstrating an oversold condition for EOS. But, in a strong downtrend, oversold conditions shown by the RSI is not sufficient to prevent the value of a cryptocurrency from falling.
Even Well Performing Cryptocurrency and Tokens are Falling by Large Margins
Throughout April and May, tokens such as Ontology, ICON, and 0x outperformed bitcoin, Ethereum, and almost all major cryptocurrencies in the market. However, influenced by the downtrend of BTC and ETH, even these tokens that have recorded 50 to 100 percent gains in the past two to three months, have fallen by large margins.
If BTC falls to the lower end of the $5,000 region as expected, these tokens will continue to decline, by larger margins than BTC and ETH.
Featured image from Shutterstock.
Follow us on Telegram or subscribe to our newsletter here.
• Join CCN’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Hello! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa? My blog addresses a lot of the same topics as yours and I feel we could greatly benefit from each other. If you’re interested feel free to shoot me an email. I look forward to hearing from you! Wonderful blog by the way!
引領美容健康 開創美業潮流 – 國際美容健康總聯合會 ( 中國分會 – 香港分會 )International Beauty & Health General Union ( Section China – Section Hong Kong ) 引領美容健康 開創美業潮流 – 國際美容健康總聯合會 ( 中國分會 – 香港分會 )International Beauty & Health General Union ( Section China – Section Hong Kong )
Sunderland manager Steve Bruce will spend the next few months ‘scouring the world’ to find the man to replace Darren Bent. We will scour the world to find a replacement for Bent, reveals Sunderland boss Bruce
Tim Sherwood has challenged Jack Grealish to perform consistently for Aston Villa to force his way into the England squad – but believes Euro 2016 may come too soon for him. Jack Grealish needs to improve for Aston Villa before England come calling, warns boss Tim Sherwood
Jose Mourinho has been summoned by Real Madrid president Florentino Perez to explain why the club’s season has yielded only one trophy and a barrage of criticism. Jose facing flak from Real chief after Madrid’s Champions League exit
Scoring sensation Papiss Cisse has admitted he is thriving on the pressure of trying to live up to the demands of wearing Newcastle’s famous No 9 shirt Fit to wear the shirt! Cisse proud to wear Newcastle’s iconic No 9
… [Trackback]
[…] Information to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Information on that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Here you can find 49799 additional Info on that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Here you can find 86888 more Information to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Find More on that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Find More Info here to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Find More to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Read More to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Read More to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Here you will find 70915 additional Information on that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Read More here to that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Here you will find 33906 more Information on that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]
… [Trackback]
[…] Find More Information here on that Topic: tradingbtc.com/2018/06/24/cryptocurrency-market-drops-to-241-billion-eos-takes-a-huge-beating/ […]