The EOS price is approaching $ 6 at a steady speed despite the drama surrounding the network

In the case of the EOS Blockchain, one of the often criticized statements is about the cartel created by some Block Producers (BP) to dominate Blockchain according to their interests and thus only electing certain B.P.s against with others. But how do they control and change the B.P. rankings at a practical level? Besides, the EOS price has increased by 13.72% last week. The next stop is likely to arrive at the next resistance at $ 5.04.

Who are the B.P.s?

There are 21 B.P.s in the EOS blockchain validating the blocks; all the remaining B.P.s are in standby mode, though up to position 65, they still receive rewards because they still have machines that operate in the event of a top B.P. crash.

Unfortunately, currently, there is no audit to show whether the B.P. account has a working machine since any account can become B.P. if there is a certain number of votes – right. It takes at least 50 million votes to enter the top 65 – so maybe more B.P. is artificially created.

What’s the point of creating fake B.P.s?

As mentioned, only the first 65 people receive a contribution in EOS tokens, as an incentive to keep the machines running, so if the user has enough tokens to bet, it only takes 2 minutes to create a new account and vote for the account.

The cartel: pure science fiction?

Unfortunate. As a public blockchain, it can be seen that several B.P. accounts were created all on the same day and, coincidentally, all had enough votes to be in the top 65.

  • Eosrainbowbp, position 57.
  • Eosathenabp1, position 54.
  • Eoszeusiobp1, position 55.
  • Eosunioniobp, position 60.
  • Valid, position 44.
  • Stargal Waxbp, position 43.
  • Koreabexbp, position 27.

These are just seven accounts created through the TokenPocket account.

What are the measures taken to resolve this cartel?

Although the current situation is not the most promising, this fact is known among the top management of Block .one. Not coincidentally, CTO Daniel Larimer wrote a proposal to change some of the rules of BlockchainBlockchain and also has the participation of Colin Talks Crypto, who, through his authorization, colinrewards, is trying to use millions of votes to support those B.P.s that make a tangible contribution to Blockchain and the EOS community.

This is a focus issue for EOS and, although everyone agrees that B.P.s may represent a form of governance that is not very effective. Still, it must be said that in some cases, centralization can be violated in pursuit of more significant benefits.

EOS Blockchain and surrounding dramas

In September 2019, Block.One announced a U.S. $ 10 million investment in Arlington County, Virginia, for the new headquarters. Block.One’s CTO, Dan Larimer, is based in Blacksburg, Virginia, along with a team of 80 employees. The new office is set to double the size of the team and will serve as a basis for increased government relations.

Also, in September, Block.One announced a $ 24 million one-time civil agreement with the U.S. Securities and Exchange Commission (SEC) regarding unregistered EOS ICOs on Ethereum. Block.One neither acknowledges nor denies misconduct. The resolution also addresses all ongoing issues between Block.One and SEC according to the post. Globally, other regulators may also seek enforcement or settlement actions for EOS if the project is again considered an unregistered offering of securities.

Besides, it seems that the drama is emerging around Brendan Blumer and the social network Voice app.

Predict the EOS price

EOS has been trading upwards and marked a 13.72% increase in the previous week, and the price is now gradually rising towards the $ 5 price level in the medium term.

the-eos-price-is-approaching-6-at-a-steady-speed-despite-the-drama-surrounding-the-network

Source: TradingView

EOS’s coin price is at $ 4,234 at the beginning of February 4, and for the next three days, it can increase its value by 10.98% and hit $ 4,699. Between February 7 and February 8, it appeared a price compression of up to 5.19%, which caused EOS’s price to drop to $ 4,455. This was followed by a massive recovery of 13.02% that added $ 0.580 to the value on February 10 and pushed the price to $ 5,035, the weekly high. Over the past 24 hours, the EOS price has dropped by 3.34% and capped at $ 4,867.

The current value of EOS is lagging behind its short-term simple moving average by a marginal change. EOS’s ongoing price rally is likely to stay here for a few more days, and if the coin sustains a higher trading range, it could reach the next resistance at $ 5, 04. If the price adjusts down from the current price point, it can test future support at around $ 4.76.

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