Cryptocurrency Market Drops to $241 Billion, EOS Takes a Huge Beating

From $260 billion to $241 billion, the valuation of the cryptocurrency market has dropped by over $19 billion in the past 24 hours, as major cryptocurrencies including bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS fell by large margins.

For a third day in a row, EOS, the delegated proof-of-stake (PoS) network based on the Ethereum blockchain protocol, has recorded the biggest loss amongst major cryptocurrencies. On June 24, EOS recorded a loss of 13 percent, while BTC, ETH, XRP, and BCH fell 3.5%, 4.6%, 5.8%, and 8.5% respectively.

Why the EOS Fall?

The decline in the price of EOS can be attributable to a wide array of factors but in summation, the reasons behind the major EOS drop can be shortened to two main components:

  1. Abnormally large rally prior and after the mainnet launch
  2. Recent controversy around EOS constitution and centralization

Yesterday, CCN reported that Cornell professor Emin Gun Sirer and smart contracts pioneer Nick Szabo criticized EOS for its bugs and characteristics that point toward network centralization.

Specifically, Szabo criticized the ability of EOS to suspend user accounts, confiscate funds, and auction accounts if user accounts remain inactive for long periods of time. Szabo stated:

“In EOS a few complete strangers can freeze what users thought was their money. Under the EOS protocol you must trust a ‘constitutional’ organization comprised of people you will likely never get to know. The EOS ‘constitution’ is socially unscalable and a security hole.”

EOS controversy intensified when EOS suspended 27 accounts with no reasons. In a document entitled “Emergency Measure of Protection Order (ECAF),” with abnormal authoritarian wording, EOS team said, “it is hereby ordered that the EOS Block Producers refuse to process transactions for the following accounts and keys indefinitely,” because the 27 accounts did not process transactions for long periods of time…

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