EOS drops 13% in two days as community halts Brock Pierce’s $250M takeover

Eos.io EOS Helios
image from medium.com

Key Takeaways:

  • Venture Capital Fund Helios will support smart contract platform Eos.io and startups in its ecosystem.
  • The blockchain’s native token EOS did not respond to the news, and flopped 13% in 48 hours.

YEREVAN (CoinChapter.com) – EOS lost 13% in the previous two days and traded at $3.21 in Friday’s European session. However, Helios announced that Eos.io is “primed for an eruption on innovation,” as the venture capital fund supported the ecosystem’s founders and developers.

The tweet asserted that Helios would manage several startups on the blockchain, as well as increase opportunities for “institutional investors entering the expanding industry.”

Brock Pierce founded Helios in Nov 2021 with the ambition to revive EOS. The latter was dubbed the “Ethereum killer” and entered the top 5 cryptos in 2018, but has steadily declined since. As of Dec 10, the project ranks #51 with a $3.3 billion market cap.

However, the venture fund claims it will “build Eos.io businesses into future revenue streams.”

We are excited about EOS’s journey into the next chapter and it will increase engagement and innovation with the EOS community. I hope to be able to reach many new goals together.

commented Mr. Pierce.

Also read: EOS primed for 40% rally on a favorable technical setup

Moreover, Block.one, the company behind Eos.io, transferred 45 million EOS tokens to Helios in early Nov. The transfer stood at over $200 million at the time.

However, the project community wants nothing more to do with Block.one. The community claimed the company received 100 million EOS ($376 million) in return for supporting the blockchain. Further complaints included Block.io’s alleged disinterest in the project.

They fired the company, claiming it doesn’t act in the project’s best interests, and “tanked” the market cap in three years. Yves La Rose, the network foundation leader, commented on the vote, saying Block.one’s corporate interests “didn’t align” with the community interests.

Through a super-majority consensus, the EOS network has taken its future in its own hands by voting to fire Block.one and stop vesting tokens to them. This begins a new era for EOS and highlights the power of the blockchain to enable a community to stand up against corporate interests that don’t align with theirs

asserted the executive.

The EOS charts seemed unimpressed by the “new page in Eos.io history”, as the token price flopped 13% in the previous 48 hours.

EOS daily chart

EOS’s price action has formed a Descending Channel that’s been in effect since August 2021. The Channel features two parallel trendlines, with a significant mid-range that acted as both support and resistance for the token. The formation does not predict a future bias for Eos.io, but it is instrumental in determining short-term vectors while relevant.

EOS in a Descending Channel. Source: EOSUSD on TradingView.com
EOS in a Descending Channel. Source: EOSUSD on TradingView.com

As of publication, EOS retested the Channel’s support on Dec 5-6. However, it declined again after recoiling from the mid-range trendline, hinting at an additional 10% drop. Thus, the digital asset could retest the Channel’s lower trendline again before taking off a new leg up.

Also read: US SEC shows complications with Bitcoin ETF kinds

Moreover, the relative strength index (RSI; purple graph) made higher highs, indicating a possible market entry. Should the Descending Channel prove relevant, EOS’ price would increase after retesting the support. As mentioned, the Channel does not predict any long-term movements for EOS. However, the Helios fund could aid the asset to reverse the losses of the past few months.

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