The price of the native token of the EOSIO blockchain – EOS – is surging by more than 18% this morning at $1.52 per coin after the company settled with investors who claimed the project breached US securities laws by failing to register EOS as a security with the country’s Securities and Exchange Commission (SEC).
Trading volumes this morning are surging by 390% with over $1 billion worth of EOS tokens having exchanged hands in the past 24 hours. This represents nearly 70% of the token’s fully diluted total market capitalization according to data from CoinMarketCap.
The settlement affects Block.one, the company in charge of developing the EOSIO blockchain, which has reportedly invested as much as $4 billion in over 100 business projects in the crypto space including raising capital for the development of the EOSIO network.
Block.one agreed to pay $27.5 million in a settlement that has already received conditional approval from the US District Court for the Southern District of New York. According to the initial complaint, Block.one allegedly sold ERC-20 tokens to US investors to finance the development of EOSIO without registering the sale with the country’s financial watchdog.
In addition, the plaintiffs claimed that the company made false statements about its technology and that the developing team misused the capital they obtained for personal purposes.
Moreover, the Chief Executive Officer of the EOS Foundation, Yves La Rose, tweeted yesterday that the organization will be rebranding the blockchain ahead of the completion of its hard fork – which is expected to occur on 21 September.
This week we are revealing the highly anticipated EOSIO rebrand, and next month, $EOS will activate its v3.1 consensus upgrade (hardfork).
Here’s what you need to know about #TheNewEOS.
— Yves La Rose (@BigBeardSamurai) August 15, 2022
La Rose emphasized that the Foundation “fired” Block.one last year and effectively took control of the network’s governance. However, they cannot change the blockchain’s code as the intellectual property is owned by a company related to Block.one.
To circumvent this limitation, the EOS Foundation will prompt a hard ford of the blockchain that will allow the entity to gain full control on all upcoming changes and upgrades made to the network.
In regards to the blockchain’s prospects, La Rose stated: “Rebranding EOSIO and hardforking #EOS is a necessary part of the comeback, and represents the start of a new chapter: #TheNewEOS”.
He added: “Under the leadership of the @EOSNFoundation, $EOS can finally break through its glass ceiling and reach its full potential!”.
The EOS Network Foundation is scheduled to release more details about the rebrand at some point today.
What is the EOS blockchain?
The EOS public blockchain is a network that allows developers to use decentralized ledger technology to build software and applications. It is powered by a delegated proof-of-stake (DPoS) protocol and its native token is called EOS.
Smart contracts can also be built on the EOS blockchain by using the C++ programming language. The network is considered a competitor of Ethereum (ETH) as it was created to be more scalable and cheaper to use than its predecessor.
This project was developed and it is currently administered by Block.one, a venture capital firm that invests in crypto projects and that considers itself the “originator” of the EOS blockchain.
The EOS community has been coordinating efforts to sack Block.one as the administrators of the project as they believe they have failed to promote the ecosystem and have not introduced any relevant upgrades to the network during their tenure.
EOS Price Prediction 2022
According to estimations from Wallet Investor, the price of EOS is expected to increase to as much as $1.78 per coin within the next 14 days resulting in a 17.1% upside potential based on the current price if that target is hit.
The outlook for the token is bullish as per the algorithm based on an analysis of a handful of technical indicators.
Meanwhile, Gov.Capital is expecting that the price action will remain highly volatile within the next 14 days with the price possibly surging to $1.6 per coin at some point to then decline to around $1.45 per coin at the end of that period.
As for the mid-term outlook, the algorithm expects to see the price of EOS rising to $2.31 a year from now and to $4.5 per coin five years from now.
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