On December 8, 2022, a cryptocurrency influencer announced that developers have been abandoning the EOS blockchain. Based on blockchain technology, EOS is a decentralized operating system. The greatest token sale ever was an ICO they held in 2018 where they raised 2.2 billion USD.
19/ New repository per protocol data shows that developers have been abandoning the chain.
Note: In the chart below, I didn't include data for Ethereum, Solana, or other blockchains, because EOS line is just flat in comparison. pic.twitter.com/OJDMYCYDy2
— Ignas | DeFi (@DefiIgnas) December 8, 2022
They are scaleable by design and don’t require miners to validate their transactions. They promised to develop a blockchain that is more scalable and efficient than Ethereum, but a number of recent occurrences have led some people to believe that their promise is a mirage and to wonder whether it will ever be realized.
At the moment, developers are giving up on the blockchain. Everything began when Dan Larimer, the CTO who founded Steemit and Bitshares, and Brendan Blumer, CEO of Block[.]one, the tech company that developed EOS, led the EOS sale.
The SEC fined Block One $24 million for failing to register their ICO, which included the largest EOS coin, after they claimed they would use the funds to develop tools that would hasten the adoption of EOS technology. Additionally, investors sued the company.
They claimed that Block One broke security laws by making untrue claims about the EOS token.
In addition, a study claimed Block One inflated the price of EOS and encouraged investors to buy the ICO token under the illusion of urgency. This is all to say that Block One has failed to support the EOS ecosystem.
However, according to the EOS token purchase agreement, Block One is free to use the funds however they see fit.
In order to advance blockchain technology and support startups that will be creating apps on it, Brendan Blumer had promised to invest $1 billion from ICO revenue through EOS VC.
Block One stated in May 2021 that it would be creating an exchange called Bullish, with capital provided in significant part by the proceeds of the EOS ICO.
Just one month ago, Blumer purchased 9.3% of the cryptocurrency bank Silvergate Capital SI. Due to its affiliation with FTX, they purchased an additional 7.5%, and now Silver Gate is the subject of examination. Currently, Block One can no longer be relied upon for success by the EOS community.
EOS needs a lot of work before it can effectively compete with Ethereum. There is still hope for them, even if they are currently failing.
As of last month, Samurai and the EOS Network Foundation had established a $100 million fund to support the EOS ecosystem.
In the cryptocurrency sector, EOS is still regarded as one of the very few projects that allows stakeholders to monitor and predict the project’s long- and medium-term future. Early in the coming year, the EOS community will also launch EOS EVM, and it is anticipated that Trust EVM will offer customers high levels of EOS scalability, security, and dependability at low transaction costs.
