Tuesday, 07 July 2020

Is EOS a Scam?

What if crypto fraud is just getting started?

EOS secured $4 Billion in a year long ICO, but could go down as the biggest scam in crypto.

There’s been multiple reports of collusion, and even that EOS is not a real blockchain. It’s probably a glorified cloud-computing service, and if fraud is a problem in Crypto, the SEC has to go after this one.

Given how it works, it’s certainly not decentralized. Voter collusion on this project is well documented. If crypto is all about sentiment and hype, EOS is highly problematic.

Sadly the users on EOS are probably fake as well as the transactions. This is backed by the report of a test on the EOS ecosystem that was conducted by blockchain testing company Whiteblock.

Block.one to me are the worst profiteers of the cryptocurrency movement I’m currently aware of. EOS is a security and it’s not just Facebook I’d shut down to make the world a better place, this project has to end.

According to the test by Whiteblock, EOS is not a blockchain in strict terms but rather a non-autonomous homogeneous distributed database system. In an era of false cries of “decentralization”, here many believe EOS is actually a fake blockchain. As outrageous as that sounds. We’re not trying to be negative here, but this is what the research seems to indicate.

Is EOS an overhyped crypto-poseur? Yes, but likely worse. Fraud is a big part of why ICOs have seen a huge drop with more regulatory scrutiny. Projects like EOS and Tron have to raise red flags, big red flags.

I don’t believe these are serious Etheruem competitors, or will they ever be.

There’s a lot of serious debate on this and even the transcript of a secret meeting among block producers which seems shady as they were discussing how to print thousands of EOS to pay for RAM.

An article published by Bitcoinexchangeguide.com in October 2018 detailed how Block.one has failed to release the audit report for EOS and investors were getting desperate. This has led to a wash trading accusation against EOS during its ICO.

Block.one have their HQ in the Cayman Islands, that’s not Malta folks. They executive team have affiliations with Hong Kong. If I was a serious crypto investors doing my due diligence, there would be so many reasons not to invest in EOS, it wouldn’t even be funny.

The fake-it-till-you-make-it thing in crypto is through the roof, and ethically, it’s just so disgusting. If blockchain was supposed to be about trust, so many blockchain starutps and public blockchains fail at this so hard. From Ethereum’s governance to false cries of “decentralization”, it’s abysmal to watch.

But you don’t have to listen to me or random Reddit users to see that EOS has major issues. Do your own research, see how much of crypto hype is real and what’s not.

EOS can overtake Litecoin on the crypto charts, but EOS is likely and probably a fraud and a scam. You don’t need to be a blockchain engineer or a serious crypto investor to see that.

Block.one has purchased 3.3 million EOS worth of RAM and we await some mysterious announcement. You really have to wonder at crypto startups able to scale that appear to have a voting structure that’s so absurdly centralized.

A few cryptocurrency exchanges and some public blockchain projects are known to fake transaction levels to seem bigger than they really are.

By Michaiel K Spencer
source: medium.com
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