The EOS community is at present working with the only objective of distributing a brand new digital coin, EIDOS. The coin, extensively traded on exchanges already, gives an opportunity for producing nearly assured revenue from its sale.
EOS Network Runs on Borrowed Resources
The EOS network floor to a halt from November 1 to November 8. Now, exercise has recovered, however analysis by crypto alternate Coinbase reveals that the majority of exercise is predicated on lending assets. Most transactions are nonetheless supporting the EIDOS simulated mining and airdrop, whereas solely massive accounts with a variety of EOS at stake are able to shopping for CPU assets to run their distributed apps.
“Currently, we’re observing around 95% of all EOS transfer actions are related to the EIDOS contract. Because each transfer counts towards the amount of CPU used in a block, this spike in transfer actions caused the EOS network to enter congestion mode,” stated the Coinbase staff.
Essentially, the EOS community is getting used as a free cash printer. Prior to October 31, a number of actors purchased up network resources – CPU, RAM, and NET. The CPU utilization value spiked by 10,000% proper after the EIDOS airdrop began. The spike itself could have occurred due to hypothesis on community assets.
Thus, large-scale useful resource homeowners may pay to purchase EIDOS, then promote it on an alternate for USDT. EIDOS’s market value is displaying excessive volatility, dropping from round $0.056 proper after the beginning of the scheme, to $0.021, due to the fixed promoting strain. The EOS token value has remained comparatively unchanged at round $3.55.
EIDOS has additionally grown its presence on exchanges, reaching a list on Bithumb Global. The EIDOS mania has been spreading via WeChat, as EOS companies began providing EIDOS to their shoppers.
Enumivo Project Defended Airdrop as ‘Price Discovery’ Mechanism
The Enumivo undertaking, the predecessor to EIDOS, got here out with a slightly dramatic rationale for the airdrop. The organizers even inspired dumping the asset, to trigger the worth to drop to a stage that balances the airdrop.
The EIDOS airdrop is designed to be honest and lengthy to get extra contributors and on the similar time assist with value discovery.
To the poisonous EOS telegram teams, when you actually hate us, it is time to put your cash the place your mouth is, you will be incentivised to destroy us….
— Enumivo (@enumivo) November 10, 2019
The airdrop organizers even current the airdrop as a use case for EOS and encourage the customers to ship cash to the good contract and obtain EIDOS in return, in addition to their EOS again.
For the airdrop, the early adopters and people with assets gained entry to extra EIDOS, thus making the undertaking seem like a Ponzi scheme, the place an alternate token is being bought to create demand for mining.
Many individuals imagine EIDOS mining is ponzi – as no actual utility of EIDOS token is outlined. And neither have your staff given any clarification of undertaking past the airdrop. It certain is a ponzi by definition as it’s merely utilizing alternate token promoting to create demand for mining.
— Investing With a Difference (@crypto_iwad) November 10, 2019
The opinions on the airdrop are break up, with EOS proponents closely vital of the prospect of solely utilizing EOS for a ‘get rich quick’ scheme. Others have grabbed the chance to flip the community right into a direct supply of revenue. The EIDOS mining course of has been automated, thus making it simpler to unfold the scheme to extra customers.
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Images by way of Shutterstock, Twitter: @enumivo, @crypto_iwad