Blockchain Investor Analysis

EOS

EOS
Current Price $2.65 (+0.47%)
EOS is a smart contract-enabled blockchain network that aims to become the go-to platform for the development of decentralized applications (DApps).

Our Rating:

Market

Problem that it solves

EOS provides both an ecosystem and specific tools that help developers design smart contracts and decentralized applications. EOS users have access to cloud and data storage infrastructure, authentication mechanisms, and more, and each of these resources helps save developers the time—and expense—normally involved in setting them up on their own.

Customers

We can clearly identify the customers: developers of dApps. The individuals, startups, and enterprises that want to develop dApps more effectively and efficiently provide a strong foundation for EOS.

Value creation

You need the EOS token to run applications on the EOS network. The value of the token is therefore closely linked to the success of the EOS platform. Outside of the EOS ecosystem, however, there is no use for EOS tokens aside from being an investment.

Market structure

Anyone who wants to build decentralized applications or make use of smart contracts is a potential customer of EOS.

Market size

Developers looking for helpful APIs enjoy EOS, and there’s no shortage of people who want tools to make their lives easier.

Regulatory risks

EOS has been fined by the SEC for the way it conducted its ICO. While that means that no more regulatory pushback should come out of the US, it does not mean that there couldn't be similar fines in other jurisdictions.

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Competitive Advantage

Technology/blockchain platform

The EOS blockchain has been developed by some of the brightest minds in the crypto community and a very well-funded team on working on the project to ensure the utmost quality.

Lead time advantage

The EOS blockchain launched four years after Ethereum, which means does not have Ethereum's lead time advantage. Additionally, there have already been forks that, if adopted, could overshadow the original EOS. One of the forks, Telos, directly addresses the whale-influence issue by capping token holdings at 40,000. This alone could result in a significant number of defectors.

Contacts and networks

EOS’s influence and connection capital stems from how well it’s been adopted by DApp developers. It’s one of the big three, alongside Tron and Ethereum.

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Management Team

Entrepreneurial Team

EOS is buoyed by crypto pedigree Daniel Larimer, who is behind BitShares and Steem.

Industry/technical experience

The team has more than the necessary '10,000 hours of experience.' They have been involved in multiple branches of the crypto tree, and they continue to grow with EOS.

Integrity

EOS was launched by a number of industry heavyweights such as Dan Larimer and Brock Pierce. However, with Larimer's history of starting project and then leaving them and with Pierce's departure as a project figure head to due bad press, you cannot rate EOS too highly on the integrity scale. Additionally, the project's apparent low level of decentralization further questions the integrity of those at the helm.

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Token Mechanics

Token required

EOS is a fairly straightforward utility token, similar to those found in other smart contract platforms.

Value added

EOS tokens add value in that they support what is becoming a helpful movement: the development of new platforms to solve major issues facing crypto. Other than that, the token is basically another Ethereum.

Decentralized

EOS fails in obtaining the coveted decentralized label. The rich are rewarded with decision-making power, and if they decide to join forces, EOS becomes a crypto oligarchy.

Token supply

There are plenty of tokens available and the target is a total of 1 billion with a planned 5% inflation rate. It is unlikely that EOS will suffer a token shortage anytime soon.

Public exchange

EOS has plenty of exchange juice with big names like Coinbase, Binance and Changelly all offering the coin.

MVP

EOS launched its mainnet in 2018 and is fully up-and-running.

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User Adoption

Technical difficulty

A non-technical person may have a hard time understanding EOS if they look at it from the perspective of a bitcoin user. EOS isn’t mined; it’ s issued. But people familiar with Ethereum won’t have much trouble understanding how EOS works.

Halo Effect

Although EOS is labeled an Ethereum competitor—and a hostile one at that—it still enjoys a smooth ride on the road Ethereum paved. For many users, EOS is standing on Ethereum’s shoulders, which props it up in their esteem.

Buzz

There’s no shortage of buzz around EOS. But some of it may backfire because developers and pundits who were once fans are starting to point at some EOS’s vulnerabilities.

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Overall Score

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Blockchain Investor Analysis

EOS is a promising project that has the potential to emerge as one of the most popular blockchain networks of the future. However, for now, EOS struggles with centralization due to its delegated Proof of Stake (dPoS) consensus model, which has enabled a few parties to effectively be in charge of the protocol. Should EOS overcome this issue, it could have a very bright future.

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