Cryptocurrency Market Cap Drops To $249 Billion, EOS Price Freefalling

There has been a drop in the valuation of the virtual currency market which has plummeted by over $19 billion within the last twenty four hours. EOS was seen as the biggest loser, after losing 13% of its value, even as other major currencies like Bitcoin, Ethereum, Bitcoin Cash and Ripple were also affected.

Why EOS fell

The big fall in the value of EOS has been attributed to a number of factors, though it’s unusually large rally before and after its mainnet launch is thought to have triggered the fall. Additionally, the latest polemic regarding the company’s constitution and centralization might also have resulted to uncertainties among its users.

According to a report from CCN, Emin Gun Sirer, a Cornell professor, as well as Nick Szabo, one of the pioneers of smart contracts are said to have condemned EOS following is features and bugs that indicate the centralization of its network.

Suspension Of Inactive Accounts

In his views, Szabo was of the idea that EOS’ suspension of inactive user accounts, confiscation of finances as well as auction of accounts is tantamount to a serious security threat to the investments of users of the platform. He stated that entrusting strangers with users’ accounts, who then go ahead to freeze the funds is socially illogical.

This was after reports indicated that EOS suspended 27 accounts which were deemed ‘inactive’ over long periods of time. It is also worth noting that before its mainnet launch, there was an increase in the price of EOS from $6 to $23, a significant increase of over 280%. This surprisingly huge price resulted to the intensity of its fall.

Over the past four weeks, the price of EOS fell to $7, down from $15.5. Consequently, due to the price movement of most virtual currencies being majorly influenced by Ethereum and Bitcoin, there is a likelihood that EOS as well as other tokens are still expected to fall further in the near future.

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