How are they draining 8-10% of the Ethereum presently available? What does draining even mean? Obtaining and then selling?
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How are they draining 8-10% of the Ethereum presently available? What does draining even mean? Obtaining and then selling?
What I mean by this is, that you can only buy EOS with Ether. I made a rough calculation (1-2 weeks ago), that showed that this will allocate (/drain) about 9% of the total Ether supply. Please note, that this calculation was very loose, and I made it when Ether traded at about $225.
But that makes no sense, you know that right? Do you think Gold gets drained when it's bought and sold?
EOS has made the decision to become the single biggest use case for any digital currency application and they've decided to perform that use case on Ethereum. It furthers the digital currency use case for Ethereum and makes it a more widely used and transacted in currency. It's great for Ethereum.
But nothing is being drained, it's being recycled and used, like a current...or a currency.
Ha ha, valid point. I guess my choice of words was beyond poor here... That being said, wouldn't you agree, that buying up huge chunks of gold (to reuse that example) to e.g. mint coins out of it and thus create a new value (system) does to some degree remove the original asset from the market?
No dude, not at all. Everything that exists exists and is available for a price.
How is it I have a limit order on an exchange to buy EOS with USD? Is the ETH as payment only in the ICO? Is that why no one can tell me if there is a fixed price for the token-to-be-issued when purchased directly from the developers in the ICO? If you have to buy in the ICO with ETH then "EOS when issued" should track the movements of ETH. It's a poor man's way to benefit from increases in the price of ETH.
I can't answer that question, unfortunately. I do feel pretty confident saying, that there will not be a fixed price. Since value is inherently relative, how could this be the case? Or am I misunderstanding your question?
I've done a lot more due diligence and have concluded that 1) the founders of EOS clearly state in their White Paper they could screw everybody out of their money and it would be tough luck. 2) They probably would not do that because it could be hazardous to their health. 3) They will control a huge block of ETH by time the ICO is complete. 4) EOS price movements in the after-market should roughly track ETH since people are paying for EOS in ETH. 5) A purchase of EOS is roughly equivalent to one roll at a crap table because of all the disclaimers in the White Paper. I took a position in EOS last week understanding I could easily lose everything.