The EOS network is currently operating with the sole purpose of distributing a new digital coin, EIDOS. The coin, widely traded on exchanges already, offers a chance for generating almost guaranteed income from its sale.
EOS Network Runs on Borrowed Resources
The EOS network ground to a halt from November 1 to November 8. Now, activity has recovered, but research by crypto exchange Coinbase reveals that the bulk of activity is based on lending resources. Most transactions are still supporting the EIDOS simulated mining and airdrop, while only large accounts with a lot of EOS at stake are capable of buying CPU resources to run their distributed apps.
“Currently, we’re observing around 95% of all EOS transfer actions are related to the EIDOS contract. Because each transfer counts towards the amount of CPU used in a block, this spike in transfer actions caused the EOS network to enter congestion mode,” stated the Coinbase team.
Essentially, the EOS network is being used as a free money printer. Prior to October 31, several actors bought up network resources – CPU, RAM, and NET. The CPU usage price spiked by 10,000% right after the EIDOS airdrop started. The spike itself may have happened because of speculation on network resources.
Thus, large-scale resource owners could pay to acquire EIDOS, then sell it on an exchange for USDT. EIDOS’s market price is showing extreme volatility, dropping from around $0.056 right after the start of the scheme, to $0.021, due to the constant selling pressure. The EOS token price has remained relatively unchanged at around $3.55.
EIDOS has also grown its presence on exchanges, reaching a listing on Bithumb Global. The EIDOS mania has been spreading through WeChat, as EOS services started offering EIDOS to their clients.