EOS price falls further after continuing centralization problems

EOS has been struggling with centralization problems within the community for some time. Despite the fact that the platform is in the first place of the Chinese Center for Information and Industry Development (CCID), these centralization problems hinder a further rise in the price.

At the time of writing, the price of EOS is $ 6.09 according to CoinMarketCap. Just like the rest of the cryptocurrencies, EOS shows a decrease again today. However, the results of the past longer term are disappointing.

The exchange rate fell by almost 25% in value in the past 7 days. If we look at the entire year 2019, EOS is still in the plus with 139%. But that is nothing compared to the growth it saw when EOS reached its annual high of $ 8.27. At that time, investors achieved a return of 247% during 2019.

The biggest problem currently facing EOS is the degree of centralization within the platform. Thanks to the protocol that implements EOS, the ” delegated Proof-of-Stake (PoS) ” protocol, 30 Block Producers have considerable power.

These Block Producers create the blocks that will eventually be added to the EOS blockchain . In addition, they also decide on disputes within the community regarding EOS.

Despite the fact that the Chinese CCID still has the platform at number one, Weiss Ratings recently lowered the score of the platform. Weiss Ratings then tweeted:

EOS DOWNGRADE: #EOS has serious centralization problems, and their event last week did not cause those concerns to be resolved, so we have significantly reduced the technology score.

In addition, during the beginning of the year it was announced that an important announcement will be made on 1 June. This event was pretty hyped but ultimately disappointed. This concerned the launch of a social media platform on EOS, something the EOS community apparently wasn’t waiting for.

In short, EOS is still struggling with problems, which is also reflected in the EOS course. The current correction can push the price further back to the supports at $ 4 or even $ 3.50.

About Shawn Morrison 266 Articles
One of the founders of BitzArena. Active with crypto currency since the rise of the bitcoin. Loves the innovative character of crypto and blockchain technology, and follows developments in the market closely. Likes to connect technology with business, and likes to make difficult concepts accessible to a wide audience.

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