Standard Kepler

Demand for EOS as Regulatory Pressure Dampens Markets

Demand for EOS as Regulatory Pressure Dampens Markets
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05/21 – 05/27

WEEKLY RECAP

  • Total market cap. reached $326.45bn (a 13.9% decrease), where 7 day trading volume slumped 11% for top 100 crypto
  • The U.S. Department of Justice (DOJ) opened investigations into alleged price manipulation of BTC and ETH


WEEK AHEAD

  • 28 May: ADA to release K-EVM Testnet
  • 2 June: EOS to release EOSIO 1.0


THOUGHTS OF THE WEEK

The bearish market continued this past week. In particular, the U.S. DOJ announced the opening of investigations into alleged practices of illegal price manipulation of BTC and ETH, causing the market capitalization of cryptocurrencies to slump further by 13.9%.

Isolating the general market momentum, we observed that EOS appreciated against BTC as shown in the Chart of the Week. We believe this relatively strong demand for EOS can be explained by the scheduled release of its official MainNet EOSIO 1.0 on 2 June. This means developers can build dApps on the EOSIO blockchain using native EOS tokens. The launch has already secured the support of several exchanges, including Binance, Bitfinex and Kucoin, who have released instructions for EOS MainNet token swapping to ensure a smooth migration for EOS holders.

In addition, Binance’s announcement of the extra trading pairs of EOS/BNB and EOS/USDT may boosts the liquidity of EOS in coming weeks. Investors may also want to be aware of the extra volatility this may bring. On the other hand, Block.one attempts to maintain the demand for EOS by announcing 4 airdrops to EOS holders scheduled for June. This is relevant to the theory of “Sell the News” where Block.one attempts to incentivize holders to not short their positions of EOS in the immediate aftermath of the EOSIO 1.0 launch.

 

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