A lot of people are saying that EOS is a scam. After just a short time in comment sections or twitter you will quickly come across this claim. And if you trust random people on the internet then you might actually start believing in it. It’s really easy to focus on negative news or comments because that’s just how our brains are wired. I’ve seen this claim so much lately that I thought I’d address it here.
In this podcast I want to go through the lazy man’s guide to discerning whether or not EOS is a scam.
Let’s start with Dan Larimer, the Chief Technology Officer of Block.One, the company that is building EOS. He is largely seen as the brains behind this project and the inventor of the technology. He previously built bitshares which was the first decentralized exchange back in 2014. On bitshares he created the first stable coin called bitUSD. Many people don’t know much about these projects. They were very successful in the technical realm but seem to have been overlooked in the cryptomania of the last year.
Next he built Steemit which is a blockchain based social network that works sort of like reddit. However the users get paid for creating and curating content. This platform has nearly a million users and has an alexa rank of 1,335 which is pretty big.
How likely do you really think it is that someone who created two successful blockchain projects that were certainly not scams just woke up one day and said to himself now it’s time to ruin my reputation and legacy and create a scam even though I’m already a multimillionaire from my previous projects. Seems unlikely to me.
Aristotle said that the appeal to authority is one of the weakest arguments. (See what I did there?) but nonetheless let’s talk about other people and organizations that support EOS because many of these are putting themselves at great financial risk to support EOS.
ICO Alert is a very successful ICO rating website. Not only do they like EOS but the founder of ICO Alert, Rob Finch, started another company to become a Block Producer and they did a miniseries on their main ICO Alert Podcast called ‘Everything EOS’ where they talk about how great EOS is.
Next is Weiss ratings. This is a financial ratings company that recently got into rating crypto. They rated EOS in the top 7 of all cryptos and recently tweeted about how they thought EOS would ‘Eat Ethereum’s lunch’
#EOS (B) vs. #Ethereum (B-). At MainNet launch, EOS will process 600 transactions per second and then speed to thousands. Ethereum can only do 10. How long before EOS eats Ethereum’s lunch? #bitcoin #crypto #cryptocurrency #btc #eth #altcoin #altcoins
— Weiss Ratings (@WeissRatings) May 30, 2018
Bancor is a blockchain project that is basically a decentralized exchange. They are planning to be a block producer on EOS and not only that but they are integrating the bancor protocol into EOS.
Bitfinex is one of biggest crypto exchanges. They announced that they plan to be a block producer and they plan to build a decentralized exchange as a dapp on EOS.
Huobi is another large crypto exchange that wants to be a block producer.
AntPool, a massive bitcoin mining pool. Let me said that again a massive BITCOIN mining pool is also hoping to become an EOS block producer.
Not to mention Everipedia, Ono and other dapps being built or migrated.
So there we have ratings organizations and other crypto companies all supporting EOS. But maybe they’ve all been fooled and Dan Larimer is really just very persuasive and convinced them all of his scam? Well… let’s continue with investors.
There have been several multimillion dollar venture captial funds popping up that are committed to just investing in EOS-related projects. Yes, hundreds of millions in VC funding for EOS. Not crypto in general, but just focused on EOS!
That’s just a mania, you might say, these people probably are just dumb money getting tricked by the cheap scam that is EOS. Well… Let’s see who these people are.
There’s Galaxy Digital which is putting $325 Million towards EOS dapps. Galaxy digital is run by Mike Novogratz, he’s a famous hedgefund manager, billionaire, former partner at Goldman Sachs.
Then there’s Multicoin Capital which has Marc Andreesson as a high profile investor. They recently released a very bullish report on EOS. We will be hearing from one of their analysts in a future episode.
Next we have OK Blockchain capital which is investing $100 milliion in the EOS ecosystem.
Let’s not forget FinLab AG which is investing another $100 million to accelerate EOS development in Europe.
Then there’s Tomorrow Blockchain this VC firm is associated with Tomorrow Ventures which is run by Eric Schmidt, the former CEO of Google.
I’m pretty sure all of these people are smarter than I am and have spent considerable time on due diligence. So I’m confident that EOS is not a scam. You will have to decide for yourself.
That’s it for today, please subscribe and rate this podcast! You can go to exploringeos.com and join our email list. You can follow me on twitter @exploringeos Thank you for joining me today I look forward to talking with you again as we continue exploring eos together!