The market for cryptocurrency falls from $260 billion to $241 billion, the market value of cryptocurrency has declined by more than $19 billion in the last 24 hours, as major cryptocurrency such as Bitcoin, Ethereum, Ripple, Bitcoin Cash and EOS fell by a large margin.
EOS vs USD Quote
For the third day in a row, EOS, the Proof of Stake (PoS) network based on the Ethereum blockchain protocol, has recorded the largest loss among the major cryptocurrency . On June 24, EOS recorded a 13 percent loss, while BTC, ETH, XRP and BCH fell by 3.5 percent, 4.6 percent, 5.8 percent and 8.5 percent, respectively.
Why this drop in the price of EOS?
The decrease in the price of EOS can be attributed to a wide range of factors, but in summary, the reasons behind the biggest drop in EOS can be reduced to two main components:
Abnormally large Hype before and after the release of the mainnet
Recent controversy over the constitution and centralisation of EOS
Yesterday the CCN reported that Cornell professor Emin Gun Sirer and smart contract pioneer Nick Szabo criticised EOS for its errors and features that point to the centralisation of the network.
Specifically, Szabo criticized EOS’ ability to suspend user accounts, confiscate funds and auction accounts if user accounts remain inactive for long periods of time. Szabo said:
“At EOS, there are complete strangers who can freeze what users thought was their money. Under the EOS protocol, you must rely on a “constitutional” organization made up of people you will probably never meet. The’constitution’ of EOS is socially unworkable and a security hole.
The EOS controversy intensified when EOS suspended 27 accounts without cause. In a document entitled “Emergency Measure of Protection Order (ECAF)”, with abnormal authoritative wording, the EOS team said, “EOS block producers are ordered to refuse to process transactions for the following accounts and keys indefinitely”, because the accounts did not process transactions for long periods of time.
Prior to the launch of the EOS mainnet in early June, the price of EOS increased from $6 to $23.1, by more than 285 percent. The unexpectedly large increase in the value of EOS led to the fall of EOS intensifying and eventually led the cryptomoney to record a greater loss than other major cryptomoney.
In the last month, the price of EOS fell from $15.5 to $7, down 55 percent in 30 days. As the price movement of most cryptocurrency and tokens is mainly influenced by Bitcoin and Ethereum, it is likely that EOS and other tokens will continue to fall in the coming days.
The Relative Strength Index (RSI) of EOS remains at 27.8, demonstrating an oversold condition for EOS. However, in a strong downward trend, the oversold conditions shown by the RSI are not sufficient to prevent the value of a kryptonite from falling.
Even cryptocurrency and tokens that work well are falling by the wayside.
During April and May, tokens such as Ontology, ICON and 0x surpassed Bitcoin, Ethereum and almost all the major cryptocurrency on the market. However, influenced by the downward trend of BTC and ETH, even these tokens, which have recorded gains of 50 to 100 percent in the last two or three months, have fallen by large margins.
If BTC falls to the lower end of the region of $5,000 as expected, these tokens will continue to decline, by higher margins than BTC and ETH.