Cryptocurrency News

Block.one, EOS, The $4 billion ICO And The Key Nobody Trusts

Most crypto ICO’s last an evening and – if their lucky – raise a few million. EOS enjoyed the luxury a year-long ICO during which parent company Block.one raised $4 billion.  So why, days after it was scheduled, does EOS still have no network?

The much-hyped and long-overdue EOS mainnet launch has stalled; only 7% or less of EOS tokens are held by the owners taking part in the vote. For the launch to be completed, the voting process for the EOS block producer requires 15% of all tokens to be used. As of this moment, the situation is stalemate. The EOS launch is on indefinite hold. Needless to say, the investors who pumped $4 billion into the project are far from happy.

On June 10 the united EOS block producer candidates delivered a unanimous ‘yes’ to officially announce the launching of the mainnet. However there is one major problem – for some reason, EOS token holders aren’t taking part in the voting process. As the voting process needs to hit the magic 15% for the establishment of the new EOS blockchain, right now what is already a complex launch process has become totally gridlocked.

Why Wont EOS Token Holders Take Part In The Voting Process?

For the EOS mainnet to go live, at least 150,000 EOS tokens must be used to elect 21 block producers. Block.one, the creator and parent company of EOS project assigned the creation and development of a voting system to the EOS community. While this may have made sense to Block.one, as EOS was designed for self-governance by its users, all it has achieved is confusion.

EOS Keys Not Fit For Purpose?

In order to vote, an EOS token holder must provide their private key, and here lies the crux of the matter: These keys are basically sensitive cryptographic strings that prove the holder does indeed own their funds. Needleless to say, should a key be lost, it would be gone forever. This would appear to be the main stalling point – whilst token owners are keen to take part in the vote, they worry that the very tool designed to enable them to do just that – their key – might not be fit for purpose, and actually put their EOS holdings at risk.

As one EOS owner put it:

“The biggest ‘miss’ in the EOS launch is the failure to understand that retail EOS investors will be reluctant to vote with their private keys on the line.”

Until Block.one come up with either A) acceptable proof that the keys in question are indeed 100% safe, or B) a viable alternative that EOS owners will accept, the situation will remain gridlocked, and eventually, EOS investors will start asking for refunds on their investment.

Hopefully, it won’t come to that, the situation will be rectified, and everyone will be happy. Because after what has already happened in 2018, the last thing the crypto-industry needs right now is a $4 billion ICO scandal.

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