What could happen to the price of EOS this year and beyond? Find out here.
EOS is a blockchain platform for the creation of decentralised applications (dapps). With an aim to offer faster transactions and scale better than Ethereum, it has attracted plenty of interest from the crypto community.
The native token of the EOS platform is (perhaps unsurprisingly) the EOS token (EOS). One of the world’s top 10 cryptocurrencies by market cap at the time of writing (13/03/2018), EOS tokens are being distributed through a unique year-long token sale.
So, should you buy any EOS tokens? To do that, you’ll need to carefully assess all the factors that could influence the price of EOS in the weeks and months ahead.
|Coin name||EOS token|
|Algorithm type||Delegated proof-of-stake (DPoS)|
|Launch date||26 June 2017|
EOS price prediction
Cryptocurrencies are complicated, speculative and highly volatile. There are many factors that can affect their price, so it’s essential to carry out a balanced assessment of those factors to develop a clearer idea of where the price of EOS could be headed in the future.
Some of the issues you’ll need to take into account are outlined in the table below.
What could drive EOS’s growth?
- Token sale. The EOS token sale began on 26 June 2017 and will run for a full year. 200 million tokens were distributed in the first five days, with 700 million more split evenly into 350 consecutive 23 hour periods of 2,000,000 EOS tokens each. The remaining 10% of tokens are set aside for block.one, the company building the EOS. IO software, and cannot be traded or transferred on the Ethereum network.
- Funding. While the token sale is taking place, EOS tokens are listed on many major cryptocurrency exchanges. Not only does this give people a chance to monitor the development of the project before deciding whether they want to buy in, therefore hopefully increasing adoption, it also allows the project to build a sizable war chest to fund future development.
- Dan Larimer. EOS founder Dan Larimer has previously co-founded successful crypto projects Steemit and Bitshares, and has extensive experience in the cryptocurrency industry.
- Platform potential. The EOS platform aims to offer a wide range of features and advantages, including vertical and horizontal scaling of decentralised applications and eliminating user fees. The full list of potential benefits of the platform is too long to list here, so check out the whitepaper for details of what EOS aims to achieve.
- Active community. EOS is backed by a very active community and social media following. Check out its Telegram group or Facebook, Twitter or Steemit pages for evidence of this, or take a look at the list of regular EOS meetups around the globe.
- Ratings. In its first cryptocurrency ratings released in January 2018, Weiss Ratings gave EOS a B rating. The only other coin to get the same rating was Ethereum, and none of the 74 coins reviewed scored an A.
- EOSfinex. EOS has partnered with Bitfinex to build a decentralised exchange known as EOSfinex. The aim of the project is to provide a fast, transparent and trustless platform for digital asset trading, but there was no official launch date at the time of writing.
What could hold EOS back?
- Lack of adoption. There are several platforms in various stages of development that aim to offer scalable dapps. The value of the EOS token will be closely linked to the level of adoption the EOS platform can achieve.
- Competitors. Though EOS has been heralded as an “Ethereum killer”, the Ethereum platform continues to grow and is the world’s second largest cryptocurrency. EOS faces a huge battle to dethrone Ethereum as the number-one platform for dapps and smart contracts, while it will also need to compete with a host of other projects with similar goals.
- Still in development. The EOS platform is still being developed, so it’s not yet known for certain whether the technology behind it will be able to deliver on its promise and potential.
- Losing Dan Larimer. Some critics of EOS have questioned Dan Larimer’s commitment to seeing the project through to fruition. Having developed Steemit and Bitshares and then left for other projects, Larimer has developed a reputation (whether deserved or not) for leaving projects before they’re fully developed. If he decides to move on from EOS, this could have an impact on consumer confidence in the platform.
- No function for tokens. On its official FAQ page, EOS states that its tokens don’t have “any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform”. Consider any effect this may have on demand for the token.
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What’s coming up in EOS’s roadmap
EOS’s development team is right in line with the roadmap it released in mid-2017. The EOS Dawn 1.0 release took place in September 2017, while December 2017 saw Dawn 2.0 introduce resource tracking and inter-blockchain communication.
The next stage is Dawn 3.0, which EOS says will provide the following benefits: “EOS Dawn 3.0 will re-introduce horizontal scaling of single chains and infinite scaling via secure inter-blockchain communication. With these two features there will be no limit to what can be built on blockchain technology, nor for how decentralised the network of blockchains can become”.
At the time of writing, the Dawn 3.0 code was still in the early alpha stage and was not scheduled to be available in a public TestNet until the end of Q1 2018. According to the official roadmap, Winter 2017 and Spring 2018 (northern hemisphere) will see the EOS platform undergo heavy testing with the emphasis on finding security issues and bugs.
Once a stable product has been released, Summer and Autumn 2018 (northern hemisphere) will see development focus on “optimising the code for parallel execution”.
Another factor to consider before deciding whether or not to buy EOS tokens is the competition the EOS network will face from other similar projects. As platforms battle for supremacy and market share in the impending blockchain economy, how EOS stacks up against its competitors could have a positive or negative impact on its price.
Competitors to keep an eye out for include:
- Ethereum (ETH). Ethereum is currently the biggest and best-known platform for dapps and smart contracts. Launched in July 2015, it’s now the world’s second-largest cryptocurrency by market cap.
- NEO (NEO). Commonly dubbed the Ethereum of China, NEO is an open-source blockchain for the development of smart contracts and digital assets. It’s also one of the top 10 cryptocurrencies by market cap.
- Ethereum Classic (ETC). Formed from a fork in the original Ethereum blockchain, Ethereum Classic is a decentralised blockchain platform that runs smart contracts.
- Stratis (STRAT). Designed to help companies integrate blockchain technology into their systems, Stratis allows companies to create their own custom dapps.
- Waves (WAVES). A unique platform that allows startups to run ICOs and also enables the development of dapps, Waves was launched in June 2016.
- Qtum (QTUM). Qtum is a China-developed platform that aims to combine Ethereum’s smart contracts with bitcoin’s secure blockchain.
Beyond 2018: What does the future hold for EOS?
While there seems to be plenty of potential for EOS to enjoy a bright future, there’s still a level of uncertainty surrounding the project. The next 12 months will be a crucial phase for the platform as the much-anticipated official release of the EOS platform occurs.
If it can achieve the goal outlined in its whitepaper – creating “a blockchain architecture that scales to millions of transactions per second, eliminates user fees, and allows for quick and easy deployment of decentralised applications” – it could well become a major challenger for Ethereum.
However, there are still a lot of “ifs” at this stage of the project. The EOS platform is still being developed, and big challenges like a stable release and migrating to its own blockchain still lay ahead. And while the platform is being built, competitors like Ethereum are continuing to grow and also working on solutions to their scaling problems.
Finding out whether EOS has the features and functionality to achieve widespread adoption will be fascinating, so it’s definitely a project worth monitoring throughout 2018 and beyond.
EOS is still a relatively new project. While it undoubtedly has a grand vision and plenty of potential, not to mention significant financial backing, whether or not it will become a viable network that plays a crucial role in the blockchain ecosystem of the future remains to be seen.
If you’re thinking of buying EOS, thoroughly research all the factors that could have a bearing on its price before making a purchase.
At the time of writing, the author holds IOTA and XLM.