EOS Token Sales to Reach $4 Billion in ICO
We have seen many incredible instances of initial coin offerings exploding in popularity even when the companies running them are less than transparent. Block.one, a start-up company based out of the Cayman Islands, is now on track to raise more than $4 billion over the course of their ICO which has been open for nearly a year. It has quickly become the largest single ICO to date, with its only close competitor for the size of the sum collected being Telegram Group Inc. which raised $1.7 billion during their offering.
However, like many new ICOs and cryptocurrency start-ups in this space, the EOS team has been avoiding communication with the public and has been rather cryptic in their official plans for the EOS token once the platform goes live. Which brings us to the platform itself. EOS is attempting to rework how people use and interact with the Internet by changing the actual architecture on which it has been built. Their ultimate goal is to create a more decentralized platform for the Internet to operate through than the current systems like Google or Android, which favor centralization.
Now, that sounds like a nice idea but as it stands, that’s all that it is. The executives at Block.one have all but refused to answer questions from reporters, even from mainstream publications. This is usually a bad sign when the people who are supposedly developing a platform are collecting money from investors but refuse to answer any questions that would give people an idea of their progress or how they plan on spending the money.
On its own, refusing to talk to the media in the interest of keeping trade secrets confidential might not seem that suspicious but coupled with the company’s only public plan for after the ICO ends, it resembles a scam more with each passing day. EOS should be launching the first live version of their platform sometime in June but they have doubled down on their seemingly shady behavior and decided to not develop the software for the platform after it is released. This is especially questionable as they have pledged to invest more than $1 billion of the money raised in the ICO into companies that want to build onto the EOS platform while neglecting to mention the plans for the other $3 billion. Now, there might be good reasons for doing this and for looking to other companies to get involved in the project but that does not give the company a free pass to operate without answering to their investors.
Due to some of the regulations in place with internationally based ICOs, investors in the US don’t have direct access to the offering. Instead, they have to use certain backchannels to get in on the EOS action. However, given the company’s relationship with the public and their lack of communication, wise investors are still treading lightly into these murky waters. Where below the surface you can just as easily find treasure as you can find a hungry shark ready to take your leg.