Tag: Eosio

EOS Network Foundation Urges Community to Reject $22 Million Block.one Settlement

by Blockchain News

In a current class action lawsuit in the United States, the EOS Network Foundation (ENF) has openly pushed the EOS community to reject the proposed settlement with Block.one, the business that created the EOS blockchain. On August 8, 2023, the information was published on the ENF’s official Twitter account.

The EOS Network Foundation is a group with the mission of using decentralization to plan a coordinated future for the EOS Network as an agent of good in the world.

Details of the Settlement

The proposed settlement pertains to the ongoing class action against Block.one, and details can be found at the settlement website. The settlement amount is $22 million, a figure that the ENF has criticized as being inadequate.

According to the ENF’s statement, “The proposed settlement amount of $22 million represents a tiny fraction of the $4 billion that Block.one raised from the community in its ICO sale and the $1 billion that Block.one promised to invest in the EOS Network and community, but failed to do.”

ENF’s Stance

The ENF has expressed strong dissatisfaction with the terms of the settlement, stating that it does not adequately compensate community members for losses suffered due to Block.one’s “misrepresentations and bad acts.” Furthermore, the ENF emphasizes that the settlement would bar class members’ rights to seek fair and just resolution to their claims in the future.

The ENF’s statement further reads: “$22 million is too small a price for Block.one to pay to avoid having to be held to account for their bad acts in the future.”

Call to Action

The ENF is urging community members to opt out of the settlement, sending a message to Block.one and the court that the settlement is inadequate. The deadline to opt out is August 29, 2023. Failure to opt out by this date may result in automatic inclusion in the class, impairing future rights to bring a claim against Block.one.

EOS community members who wish to opt out of the settlement can do so by completing the web-form located at this link.

What Happend Before The Call

The ENF’s call to reject the settlement comes in the context of ongoing legal disputes with Block.one.

Block.one is being sued by the ENF for “failing to follow through on its $1B commitment,” according to an announcement made by ENF founder and CEO Yves La Rose on July 25. 

On January 31, 2023, U.S. court rejected Block.one’s $27.5 million settlement offer to main plaintiff Crypto Assets Opportunity. The $22 million settlement that is now being sought relates to a different class-action case that has been ongoing for some time.

La Rose has been outspoken about the difficulties the EOS community is experiencing as a result of Block.one allegedly not honoring its investment pledges. In May 2023, he initially advocated for a class-action lawsuit against Block.one, claiming that the firm had broken its pledge to give EOSIO developers $1 billion from the EOS initial coin offering (ICO) which Block.one raised $4.1 billion in 2018.

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Pro traders cut their EOS longs, but retail FOMO and $50K+ BTC could tip the scale

by Cointelegraph

EOS began a descending trend 53 days ago and despite the recent 27% weekly gain, the altcoin is not showing any signs of a reversal. As a result, investors are questioning whether the former top-5 cryptocurrency has what it takes to turn around after Daniel Larimer, CTO of the development company behind EOS, resigned in late 2020.

EOS price at Bitfinex in USD. Source: TradingView

The emergence of competing proof of stake smart contract platforms like Solana (SOL), Polkadot (DOT) and Avalanche (AVAX) possibly weighed on this 2017-era project. One potentially bullish catalyst could be the fact that Block.one, the company responsible for the EOS token launch, owns over 160,000 Bitcoin (BTC) according to data compiled by BitcoinTreasuries.net.

EOS might not be the preferred smart contract network of the day, but a handful of working finance, games, exchanges, and decentralized social applications are running. The transaction cost for the user is either negligible or usually covered by the wallet or application, which makes it a great contender for non-fungible tokens (NFT) and social networks.

The top decentralized apps on EOS. Source: DappRadar.com

Having deep pockets is an excellent strategy to land some heavy partnerships and Block.one secured over $300 million from investors, including Peter Thiel, Mike Novogratz and Alan Howard. The EOSIO developer reportedly came up with another $100 million cash injection for Bullish exchange, which completed its seven-week testnet on Sept. 15.

According to its website, all Bullish exchange transactions and states will be validated and stored on EOSIO-based blockchains, enabling instant auditing and upholding integrity. Moreover, the company expects to make $3 billion of assets available to the Bullish liquidity pools.

Retail traders lost confidence after September’s crash

To understand how confident traders are on EOS holding the recent $4.50 support, one should analyze the perpetual contracts futures data. This instrument is the retail traders’ preferred market because its price tends to track the regular spot markets. Unlike quarterly futures, there is no need to manually roll over the contracts nearing expiry.

In any futures contract trade, longs (buyers) and shorts (sellers) are matched at all times, but their leverage varies. Consequently, exchanges will charge a funding rate to whichever side demands more leverage, and this fee is paid to the opposing side.

Neutral markets tend to display a 0% to 0.03% positive funding rate, equivalent to 0.6% per week, indicating that longs are the ones paying it.

EOS perpetual futures 8-hour funding rate. Source: Bybt.com

Data reveals a complete absence of bullish bets since Sept. 19 when the cryptocurrency market plunged and caused EOS to drop from $5.25 to $4.15 in less than two days. However, the recent rally’s inability to boost leveraged longs can be explained by the EOS price being 25% below the $6.40 peak just 30 days ago.

Top traders sold during the recent rally

To understand how whales and arbitrage desks may have positioned themselves during this period, one should analyze the top traders’ long-to-short ratio.

This indicator is calculated using clients’ consolidated positions, including spot, perpetual and quarterly futures contracts. This metric provides a broader view of the professional traders’ effective net position by gathering data from multiple markets.

OKEx top traders’ EOS long/short ratio. Source: Bybt.com

As shown above, the 1.90 long-to-short ratio seen on Oct. 3 still favors longs but is the lowest level since the Sept. 19 price crash. Interestingly, the recent 27% weekly gains happened while the top traders were reducing their bullish positions. Meanwhile, the current 3.0 long-to-short indicator sits slightly below the previous 30-day average of 3.50.

Both retail and pro traders seem unconvinced that the Bullish exchange launch will be enough to break the prevailing bearish trend initiated in mid-August. For EOS to regain investor confidence, it seems essential to show that their decentralized applications are gaining traction as the competition gains ground in NFT and DeFi sector.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.