EOS – not worthy of a full-fledged research

Author: Kaloyan Roussev
Date: 5 September 2017

Do not make investment decisions based on this article – read the disclaimer before you proceed and leave the website if you disagree with it.

EOS is not worthy of a full detailed report. Doesn’t pass my “quality investment” test

“Buyer should not expect and there is no guarantee or representation or warranty by Company that: (a) the EOS.IO Software will ever be adopted; (b) the EOS.IO Software will be adopted as developed by block.one and not in a different or modified form; (c) a blockchain utilizing or adopting the EOS.IO Software will ever be launched; and (d) a blockchain will ever be launched with or without changes to the EOS.IO Software and with or without a distribution matching the fixed, non-transferable EOS Token balance” – EOS Terms of Sale

How do I rate an investment in this project at the current price?

Their ICO will be 1 year long, currently at day 70. One year, they want to grab tens of millions of dollars, to rebrand a clone of Bitshares. One year of nothingness, one year of waiting until country after country cracks down on ICOs*. One year of possibility of a cryptocurrency bubble bursting. One year of new posts everywhere on the internet that EOS is a scam (there are so many already). One year of founder dumping in small quantities. One year of holders dumping for better, more volatile and fast FOMO cryptos. *The situation is not as harsh for ICOs already concluded, rather than for an ICO that will be undergoing for one year, exposing itself for that long, accumulating such copious amounts of money.

Will I buy? No. I would buy, 1 month before the 360 day ICO is over, provided that: 1. Price has fallen below 10 cents. 2. There is still a tiny hope that this isn’t a scam 3. Crypto bubble hasn’t burst yet 4. ICOs are still not under fire in the substantial portion of the world, and 5. I’m feeling adventurous. I would buy then, just because it will have bottomed out, and because most ICOs have a phase where everyone rushes to buy at the end – so there might surely be a spike to get advantage of.

The project might turn out to be legit, but as Warren Buffet has said, we have to have a set of rules, and a certain threshold for every investment we make, and if a potential investment doesn’t cover all bases, we should walk away. After all, no one is pointing a gun to my face to invest in EOS in particular, and there are so many good options out there.

A facebook “friend” got mad at me for writing a negative report on Verge (XVG). Verge had 4 glaring red flags, according to my own rules for what a good investment it. He said it wasn’t professional of me to not delve into a full-fledged report. I told him it wouldn’t be professional to do so. When the big picture (the strategy) is blatantly off, there is no point in wasting pieces of my life looking at the small details (the tactics). Don’t be penny wise, pound stupid. Doesn’t matter how hard you try to bite the asphalt in order to dig a whole in it. Doesn’t matter how fast you run when you are running in the wrong direction. Point is, the tactics don’t matter if the strategy is wrong. Let’s examine if Hitler was a good guy. On one hand, he killed millions of people. On the other hand, he was an aspiring painter (his paintings are good, google it). Well, newsflash – different facts have different weight (importance, relevance) in the decision-making algorithm. Genocide probably has a 99.9-100% weight in the regard of someone being a good person or not.

I am not going to invest in a cryptocurrency with a year-long ICO period, when the entire internet is screaming that the devs are greedy, the founder is a grasshopper jumping from project to project, when country after country is regulating ICOs into oblivion, and when I read about the cryptobubble twice a day. Sure, I might overlook that it might actually be a legit project with weird decisions made along the way, or miss some spike here and there – but those wouldn’t’ve been foreseeable based on my current information, and much less likely than the obvious and almost certain- loss of money.

“But did you look at the technical data” – my facebook friend said. No, because the market is comprised of imperfect humans, whose perception of quality is affected by perception of the brand, the name, the logo, the founder’s appearance, psychological triggers, labeled boxes in the consumer mind. You expect for the entire mass of people to examine and compare the technology behind all projects in technically knowledgeable manner, and THEN decide how to value a project? No. They google EOS. They find 7 results about it being a scam. Then tell them how good the idea behind it is. Their perception will rationalize a way to undermine or ignore that.

On the other hand, all the scam-calling maybe pressing the price down. I don’t care, because I am turning more and more toward investing in integrity and quality of delivery. I don’t want to speculate and pray for a surge, just because after all this FUD, the price might have tanked to a level from which it could possibly surge. (I would do this for a project that has a proven track record, in value investing style)

And I am not investing in a project that makes you sign a waiver that says: “We are not obliged in any way to give you anything for your money”. Now give us your money. But then again, maybe some or most of other cryptos do this in order to bypass the SEC.

If you are an EOS bagholder and you think this is FUD – it is not. When the facts are dark, don’t blame the messenger. Blame the messenger for spreading FUD when they are coming up with lies out of thin air, trying to suppress the price. I am not shorting EOS and I do not intend to bring the price levels down so that I can buy more. There are so many good promising projects out there to put our money into. I’d put more money on… some other cryptos.

Not saying EOS is a bad project. It might be great, it even looks very promising, if it turns out to be legit, from what I read from people who watched this presentation – https://www.youtube.com/watch?v=MUZWZj1pu94 – I am just saying that it doesn’t fulfill my criteria for an investment opportunity at the current price, in the current situation.

Website: https://eos.io/
Coinmarketcap: https://coinmarketcap.com/assets/eos/

 


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