EOS’ price spiked upwards by 10%, here’s why


The EOS price on Wednesday posted more than 10% in gains against the US dollar. This was more than just a technical surge, a lot of the company’s recent updates and fundamentals played an important role in this 10% spike.

The cryptocurrency as of today is $2.68 according to CoinMarketCap, but dropped during the early Asian session. EOS briefly bounced back as the course matured and entered the European trading hours, setting fresh high towards $2.8402. Before the US session kicked in, the EOS market had extended its upside gains to establish a new intraday high at $2.9076.

Even though the price jump could be affected by the crypto recovery, EOS was among the few coins that had a strong fundamental to back its interim bullish sentiment.

So what led to EOS’ 10% spike?

There’s actually a couple of fundamental reasons that led to EOS’ price going up.

First off, Huobi, the world’s third-largest cryptocurrency exchange, said in their official press release that they would create an EOS-based derivative platform where traders would be able to take both long and short positions using the EOS tokens.

The announcement also revealed that EOS tokens would be used to arbitrage, speculate, and hedge on the platform. The event overall promised growth in demand for the cryptocurrency.

Voting

Before EOS established fresh highs, the project also attracted a proposal from Brendan Blumer, the CEO of its creator, Block.one.

On New Year’s day, he suggested the EOS should modify its constitution to allow block producers to formally pay dividends to users who provide to their stakes, terming the solution as “Voter Rebates.”

Ok, so this might sound a bit confusing for others that aren’t familiar with how the voting system or how EOS works. Let me briefly go over that part.

EOS users vote for candidates by staking their tokens, and those with the 21 largest stakes become the active block producers. They contribute by producing blocks in turns, thus confirming transactions at a much faster rate than a proof-of-work (PoW) blockchain does. These winners cannot pay any benefit to their voters.

The community started worrying when a leaked Excel spreadsheet allegedly showed Huobi accepting kickbacks for voting certain entities for the role of EOS decision makers.

The biggest problem with this is that stakers would not gain any rewards for their work.

The statement made by Blumer would allow users to earn dividends from the block producers, much like a public stock company that pays its shareholders on a timely basis.

If implemented successfully, the “voter rebates” solution could improve the EOS adoption rate, increasing its value in the long-term.

Gaming on EOS

EOS recently had a lot of new updates with blockchain gaming companies using their platform. EOSBet was able to secure a license, which was a big move to lead to its gains.

Azarus launched a game that was built on EOSIS.

Mythical Games raised a Series A round to build a game on top of the EOS platform.

The takeaway is that EOS is looking quite bright for 2019.

 


Like it? Share with your friends!

Wilson

Wilson is a 3x Startup Entrepreneur. He is passionate about the cryptocurrency space. You can catch him tweeting about cryptocurrency often @itswilson8 You can also email Wilson directly at wilson@cryptomenow.com

You may also like