EOS (EOS) Price Crashes Below $7 Despite Voice Social Network Announcement
EOS (EOS) is crashing below $7, despite the recent positive news surrounding the network. The coin traded at $6.36 as of 9:30 UTC on Thursday. In the past few days, EOS slid from a recent peak above $8.50, and ended the slow growth of the past weeks.
EOS started to slide after Block.one announced the Voice social media on June 1. Unfortunately, the news failed to create additional hype, as crypto-related social media have shown only limited success and some potential for scams and bot activity displacing organic growth.
Additionally, Coinbase added the option to earn EOS through its educational program. But not even the addition of EOS to the central Coinbase app managed to boost interest in the asset. Still, the possibility to hold EOS through Coinbase Custody may invite some users who want the coin for speculation, but are not confident in creating EOS accounts.
The EOS network receives multiple recognitions for being innovative but has also seen accusations of unnecessary hype. A recent report showed that for some of the leading EOS-based apps, a large part of the activity was achieved by bots.
Because EOS claims to be one of the fastest-growing ecosystems, the discovery of bot activity somewhat undermines the claims to widespread adoption. Distributed apps, in general, show slow adoption with real users. In the past, networks similar to EOS have reported extraordinary transaction counts, putting into question the real source of transaction volumes. For EOS, the highest transaction count achieved was more than 87 million transactions in 24 hours.
In the past, block producers for BitShares networks would produce large transaction counts by moving coins between two nodes. It is possible to achieve a similarly high level of artificial transactions on the EOS network, boosting the count without carrying economic value.