EOS has been largely ineffective during this rally in cryptocurrency and exited the top ten by market value, but industry management believes it may be one of the best digital risk / reward assets at the moment.
Arca Chartered financial analyst and chief information officer Geoff Dorman made the claim based on Block.one’s massive Bitcoin holdings.
Before diving into this, Dorman noted that EOS is the only major cryptocurrency besides XRP to not see significant gains during this rally. EOS prices are down 26% in the past twelve months, with losses accelerating recently with CTO Dan Larimer’s departure.
But with a large number of “zombie projects” growing from 300% to 1000%, he believes EOS offers good opportunities for profit and risk.
According to data compiled by the financial comparison platform Bankr.nl, Block.one has 140,000 Bitcoins worth about $ 5.5 billion at current prices. CFA compared the market cap of EOS to the ceiling on Bitcoins;
“For $ 2.77, EOS has a market cap of $ 2.6 billion, which is only 47% of BTC’s asset value. This means that when you buy EOS, you are actually buying BTC for $ 18,771. Big discount.”
Dorman said that getting a return or return on book value basically means risking what management will do with the capital. He added that Block.one and the EOS team have done very little to build trust.
But Dorman suggested that EOS and Block.one CEO Brendan Bloomer at this point should create value for token holders as quickly as possible, return the capital, or anticipate major lawsuits.
He concluded that any of these three options would unlock that value and close the gap between the market value of EOS and the value of Bitcoin on Block.one’s balance sheet, which is currently over $ 1.5 billion higher than the company raised by the company in May 2018. … ICO.
Not everyone agrees with CFA, and one participant suggested that buying EOS is different from buying BTC;
“To be clear, you are not buying bitcoins by purchasing EOS. Block One owns 10% of EOS tokens. They are updating the eosio code. But EOS is a generic blockchain. B1 does not reward holders of EOS tokens with their bitcoins.”
The large amount of Bitcoin in Block.one books can confirm Peter McCormack’s explicit encrypted podcast comment:
“EOS was nothing more than a lever for Bitcoin.”
At the time of writing, EOS is trading at $ 2.80, which has been steady throughout the day and around 13% in the past week.