The cryptomarket saw a sharp drop on Sunday which continued during Monday’s Asian trading session. EOS lead the top 10 drops with a 22% decline. That brought the value of EOS down to the lows of the end of May. It almost reached the 78% Fibonacci retracement level, bringing it closer to our buy limit orders. While most of the bearish sentiment was due to the general market movement, ESO may have dropped more because of some negative news about the cryptocurrency and its parent company, Block.one. Here’s a quick summary of what’s been going on, and how you could develop an investment strategy.
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Summary of EOS’ Negative Press
The negative coverage continued throughout Block.one’s release of the first version of their open source EOSIO blockchain software on June 2nd.
This release itself was pushed back multiple times due to security vulnerabilities. For example, a Chinese security firm found a bug in the EOS code that could theoretically have been used to create tokens out of thin air. EOS was able to fix the bugs. To further turn the bad press into positive, Block.one invited people to hunt for undiscovered bugs in return for monetary rewards.
However, EOS faced another bad press as there was a widely publicised hack in which scam emails were sent from the account of block.one. Millions of dollars worth of EOS and Ethereum tokens were reportedly stolen, although no accurate summation of the losses is available.
Last but not least of the negative press is the voting issue. The EOS community is preparing to vote for the inaugural 21 block producers (BPs) that will initially run the network. However, there is mounting confusion and concern about how this is being handled. With this, many are questioning the democracy of the blockchain’s constitution.
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EOS/USD Price Action
The cryptocurrency’s price is fast approaching the 78% Fibonacci retracement level of $9.4. It was unable to pierce through the daily Ichimoku cloud even after EOSIO release. The future cloud has turned bearish, with the Tenkan line crossing below the Kijun line on the daily chart.
With all this, the question is whether we should hold on to our EOS tokens or get rid of them. In my humble opinion, any PR, whether good or bad, can eventually turn into positive as it gives the topic more exposure to the public. With that, while we could certainly see further drops in EOS value, we are sticking to our strategy of buying more once it reaches our targeted support levels.
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