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Investors getting concerned after EOS Mainnet Launch: Is it worth $4 billion?

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Decentralized platforms are difficult to manage. This has been a long-standing hurdle to the development of Blockchains across the board. Bitcoin’s Blockchain, for instance, has already shown its fair share of bickering and rivalry among developers and miners when it comes to making communal based decision on the network. However, recent developments with EOS’ Blockchain and its Mainnet launch have proven that there is no simple balance to governance on a decentralized network.

For EOS, it all started at the beginning of the Mainnet launch. The much anticipated Mainnet launch went live a few days ago but only after a series of hurdles. From a freezing network to vulnerabilities on the $4billion worth enterprise and even the questionable decentralized qualities of the EOS Mainnet, there has not been a shortage EOS related issued leading up to the Mainnet launch.

Let’s take a look at some of the twisted and almost dramatic developments that have led to rising concerns about the well being of EOS Blockchain project.

Questioning the integrity of the EOS Delegated Proof of Stake protocol

Having managed over $4billion in its recently completed year-long ICO, EOS is heralded as the industrial scale Blockchain project. Its creators (Block.one) consider its capacity to scale and speed up the number of transactions as its main selling point. Compared to Ethereum (its main competitor) EOS is looking to n supersede Ethereum while deploying Decentralized Autonomous Organizations (DAO) on its platform.

How is EOS able to achieve this? Well, EOS uses a unique consensus protocol called Delegated Proof of Stake (DPoS). This algorithm is the key to scalability and speed on the EOS Mainnet and relies on groups of Block Producers elected by token holders. However, it comes with a caveat. The DPoS protocol only works with 21 groups of Block Producers (equivalent to miners on the Ethereum Blockchain) and the power of votes cast is dependent on the total amount of tokens a voter holds. This, to a great extent, limits the capacity for decentralization on the EOS network.

With a quasi-decentralized Mainnet that only allows whales with most token holdings to vote, EOS has come under heavy criticism especially from the likes of Vitalik Buterin (the creator of Ethereum) who has questioned the integrity of Block.one, and whether EOS is truly a decentralized project or an organization that creates conducive plutocratic dynamics for the few network stakeholders.

Voting Complications, Backroom politics and Investment risks

During the EOS Mainnet launch, critics pointed out the arduous election that was marked by confusion with a series of problems that led up to the network freeze. Not only was the whole process full of risk (investors had to use their private keys with a third party software), but it was also full of bickering from the whales of the EOS community. According to reports, the delays experienced during voting were as a result of backroom dealings and politicking among the whales leading to the surfacing of impostors who even hacked a Block.one account with fake announcements of unsold tokens.

Furthermore, prior to the voting, a Chinese cybersecurity firm had found massive flaws in the EOS system after which Block.one announced a bug bounty program. Eventually, a cybersecurity researcher managed to find 12 vulnerabilities on the $4 billion worth enterprise.

When the 15 percent threshold for voting was finally achieved, the EOS Mainnet collapsed during the freeze to which Jack Palmer (the Dogecoin creator) tweeted:

“So the #EOS blockchain was taken offline for 5 hours just days after launch due to a bug – until a centralized company (http://block.one ) issued a patch to block producers. …and this software had $4B in funding. Making it hard to not be critical folks”

In closing

Following the freeze, the Mainnet went back to normal fairly quickly, however, a lot of crypto enthusiasts, investors and experts have taken a critical view of EOS and its viability as a Blockchain project. At the moment, a great deal of attention is on EOS and its future performance. Everyone just wants to see what a $4billion worth Blockchain based enterprise can achieve.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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