Altcoins Editor's Choice Regulation

Block One’s EOS Audit: NOT FOUND

Cryptochats-EOSWash

Almost a year ago now, concerns arose about the validity of Block One’s ICO. Accusations of wash trading EOS by Block One in order to gain investments, became a huge concern. It still is.

Wash trading is as old of a technique as the oldest markets. The point? To generate false movement in the market to gain additional investors attention and to create a sense of market interest. Investors do this by repeatedly selling and buying the same financial instruments, in this case, the ICO’s tokens. Wash trading is ofcourse illegal.

The accusations arose when it was realized that ETH was being sent from the EOS Crowdsale address to BitFinex. What caused all of the suspicion is the transaction loop that was found. ETH funds were being sent from certain addresses to the EOS ICO. These same address also received ETH from BitFinex who them sent them to the EOS ICO, and then received EOS. This loop can be seen repeated on multiple addresses which indicates the possibility of wash trading.

What’s truly so shocking about this is that BitFinex is one of the largest crypto trading platforms in the world. With funds being sent from them to these addresses, many find it hard to believe that they were unaware of what was going on. Did Bitfinex just turn their back and allow Block One’s EOS ICO to do this?

No one is sure. BitFinex announced nearly a year ago now that they were hiring a third party to conduct an audit on the EOS sale. The audit report, has yet to be found. Nothing has been said of released regarding the matter for nearly the entire year, and investors are beginning to get concerned. The silence from both parties is what continues to raise concern.

This isn’t the only problem

The idea behind EOS is to give developers the flexibility they need to create and run decentralized applications by providing a secure infrastructure. A proof of stake mechanism is used with the platform by way of 21 delegated block producers. These producers are voted in by EOS coin holders. But concern surrounding the voting process has risen as reports of the coin holders selling off their votes to the highest bidder. Not only that, but rumors of the block producers hosting their servers at major companies such as Google and Amazon has risen huge security concerns.

It seems that wherever you look when it comes to EOS, you see something shady going on. So what’s next for this coin? No one’s really sure. While investors are not yet making a move to pull out, concern is in the air.

Block One may help ease investors concern by releasing the audit in a timely fashion. Even if the audit finds them guilty, admitting to their wrong doings and what they plan to do to fix it moving forward, would ease tensions.

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Editorial Team

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