fbpx
Altcoins

EOS Moves 200,000 ETH To Bitfinex, Sparking Market Concerns

The Ethereum blockchain has provided evidence that indicates that EOS recently sent 200,000 Ether (ETH) to Bitfinex. This latest development means that the EOS crowdsale’s smart contract has just roughly $1 million worth of Ether.

EOS is a blockchain powered platform for decentralized applications (DApps) which has gained popularity over the past one year, with Block.one, the parent company raising a staggering $4 billion in its just-concluded ICO.

The crowdsale address of the EOS project has been made publicly available and it shows how much of EOS Ether go to an address which is dubbed EOS-Owner. At the moment, the EOS main Ether account has roughly 737,000 ETH, which is 400,000 ETH shy from its previous balance.

Trustnodes, earlier tracked the movement of roughly 200,000 ETH from the EOS main Ether account to Bitfinex yesterday, with the moved funds totaling just above $115 million. Providing further details, Trustnodes revealed that the transfer of the ETH was done by moving the funds from the main EOS-owner account via two intermediaries, before finally moving them to an account named Bitfinex_Wallet4.

Movement of Funds Spark Worry

Even though the just concluded EOS initial coin offering showed that the new fundraising model may prove a more effective alternative compared to the traditional venture capital (VC) method, it did put too much power into the company behind EOS: Block.one.

If history is anything to go by, then the concentration of ETH might end up not being a very good development. On Thursday, May 28, cryptocurrency exchange, Bitfinex witnessed a massive exchange of some 200,000 ETH on its platform, with most of the coins being sold. Reports surfaced that suggested that it was EOS who moved the coins to the exchange, subsequently leading to the price of ETH dropping by roughly 9% that day.

Now another 200,00O ETH was moved yesterday to the same Bitfinex wallet, with the total amount around $120 million. SANbase reported that EOS has spent roughly $2.5 million in Ether last month alone, with over $300,000 of that amount sold yesterday. Thus, suggesting that EOS might sell more ETH very soon.

At the moment, it is still unknown if the EOS significant concentration of ETH will lead to a further decline in the price of ETH and probably affect the whole cryptocurrency market.

The EOS MainNet has launched today and the platform is expected to provide tough competition to the already existing smart contract and DApp network, Ethereum.

Tags

Nicholas Holden

A chemical engineer who got obsessed with cryptocurrecnies. Holds small fortune in BTC, PVX and MIOTA. Nick's regular trading in the crypto space makes him come across exclusive news around the industry. Email: nick@blockpublisher.com or email the editor at editor.news@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close