Crypto Asset Investor James Spediacci Deems EOS As A “Disaster” For ALL These Reasons


Blockchain Investor, James Spediacci took to his Twitter page to explicitly share 13 reasons why EOS is not worth the hype it has gained. Some of his reasons have subsections, while others seem to intertwine with others.

13 Arguments By James Spediacci

Here’s a look at his reasons and the arguments used to back them up:

#1: ECAF Arbitration Process Needs Reconsidering

According to Spediacci, the ECAF process is “disastrous” because hacked accounts were frozen, followed by an “arbitration one BP [Block Producer] processed blacklisted transactions.” He also added that,

#2: “RAM Over-Speculation”

The second argument involves the impact whales have on the RAM Market. As per the claims made, it costs users $17 to hold an account, adding that “RAM is brought up and held by speculators […] the steadily increasing supply is meant to decrease the demand pressure.”

#3: Fake TX Volume

It seems like Spediacci is not convinced by EOS’ “no transaction fee” model, as he argues that it contributes to the overall faking of volume values. He also doubts the claims made by EOS themselves, who affirmed that their users are a little under 8,000, but the numbers from their Twitter and Telegram accounts depict otherwise.

# Reasons 4, 5, 6 And 7: Involve EOS’ Block Producers

Spediacci argues that block producers are given the option of “reversing transactions”, which makes EOS centralized and presents itself as having “absolute finality”, adding that it doesn’t stand by its claim of “Byzantine Fault Tolerant”. Due to the fact that EOS’ BP is a “corporate-owned server,” this simply implies that it can be shutdown with as little as a government subpoena.

Again, the notion of centralization seems to peek, as BPs are allowed to “mutually vote each other” to stay in power. The entire process of mutually voting each other in is defined as “Cartel Formation”, by the Blockchain Investor, who claims that said players also have the ability to “print money, censor, or reverse transactions.”

#8: “TX Fee Trade-Off For Inflation”

Getting back to the transaction fees noted in reason #5, Spediacci shared that the team is only able to follow a “no transaction fees” model because of they’ve since included an inflation of 5 percent. Of the 5 percent, one goes to BPs and the other four supposedly “goes into the community savings fund”. In particular, he tweeted:

#9: Possible Confiscation Of Tokens

This reason was simple and to the point, as Spediacci wrote the following: “If you don’t vote within 3 years, you lose everything because your tokens get confiscated and redistributed.”

#10 And 11: EOS’ Raised Funds Go To For-Profit, BlockOne

EOS has been given the boasting rights, as its Initial Coin Offering (ICO) managed to raise the most out of all, amounting to USD$4 Billion. Unfortunately, the claims suggest that the raised funds went directly into BlockOne’s accounts, whom can do as they please with it. It seems like nearly 25 percent have already been set aside for Venture Capital investing.

#12: EOS’ Costs Become A Burden For Developers

The Blockchain Investor openly argued that EOS dumps its costs on its developers, in the following tweet:

#13: No Rewards, No Nothing

We’ve arrived at the final reason and it seems like EOS’ reward system is not present. In particular, users who stake on their network, end up getting nothing. Said reward system is only applicable to block producers, which goes to show how centralized EOS is truly is. Adding to this, Spediacci warns users that the systems in place do not “protect [users] against inflation.”

What did you make of these 13 reasons? Do Spediacci’s arguments seem to make sense or is there a particular area that he’s got it wrong?

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