Although it is not a dead project, EOS is not on track to kill Ethereum. Additionally, several other platforms have developed into stronger rivals to Ethereum in terms of scalability and effectiveness. So, what happened to EOS? Let's see.
What happened to EOS?
One of the most eagerly awaited blockchains in the market, EOS gained notoriety swiftly. Even though the EOS main net started in 2018, things haven't always gone smoothly.
The project's biggest backers started to withdraw, and charges of vote trading started to appear. The idea of exchanging votes for money rewards became a challenge to the original promises of a decentralized system in a system where decisions are intended to be based on currency holder votes.
It became obvious to developers that earning funding for developing on the platform would not be possible without support from the largest investors. The language barrier between the majority of stakeholders in China and Western developers presented an obstacle to decentralization.
Developers were given promises of funding through developing on the decentralized platform, but the reality of this practice became increasingly difficult and sometimes impossible. Like many other crypto projects, the grand promises from the beginning had failed to materialize.
When numerous EOS token accounts were frozen due to claims of token theft, it served as the first nail in the coffin. Users had reportedly been duped into transferring their Ethereum funds onto the accounts in order to participate in EOS. Without the support of the vast majority of users on the network, a small group of influential parties in China decided to take this action.
The majority of Chinese stakeholders have accused EOS of being run by a virtual aristocracy as a result of this choice, which runs counter to the previously stated decentralized and democratic blockchain governance architecture. The original plan was to offer each system participant vote rights, but the allocation of majority voting power into the hands of the few undermined this system.
Accusations of fraud and illegal selling of securities
Block will be the target of a class-action lawsuit filed by the cryptocurrency investment fund Crypto Assets Opportunity Fund (CAOF) in May 2020. One is the decentralization's inability to live up to its promise.
In this case, Block. One was accused of using the current cryptocurrency craze to entice investors and conduct an unauthorized securities transaction. This lawsuit was most likely predicated on previous fraud arrests in the United States for breaking state laws governing the selling of securities and the transfer of money.
In essence, each state has its own laws governing the selling of securities and the operation of money transmission companies. Unlicensed Bitcoin ATMs and cryptocurrency sales are considered violations of these laws in several jurisdictions, and American cryptocurrency founders have been detained and found guilty as a result of these laws.
The purpose of this lawsuit is to hold the EOS founders accountable for misleading their investors into dumping millions of dollars into an unregulated and failing cryptocurrency project. Would the lawsuit have happened if the project was a success? Maybe not, but the price of EOS tells a different story. Well, that is, I hope now you know what happened to EOS.
