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$EOS Block Producer Collusion: A Full Research Report (Part 3) [Op-Ed]
Conclusion for $EOS
Combine all of the information that I just wrote in the prior two parts of this research report with the fact that Larimer essentially announced his exit from $EOS less than 6 months after its launch:
I covered that in a piece you can find here:
$EOS is Worthless in my Opinion
$EOS can’t do what it set out to do. The platform isn’t anywhere near decentralized. Even if the BPs weren’t colluding with one another, I wouldn’t think that the platform was decentralized — but now this puts the nail through the casket.
Not only that, people are placing their money in a protocol where the ledger can essentially be altered arbitrarily by 15/21 of the T21 block producers, and we already know that at least that many are in cahoots with one another at this very second.
So they could essentially defraud people at the snap of a finger (metaphorically), and there really isn’t anything you can do to stop it. You can’t even fork the chain (in a conventional blockchain sense).
Not only that, the identities of most of these nodes are unknown. So who would you hold accountable if something did happen? They’ve already made it known (with Larimer’s support) that they plan on issuing mutable [Ricardian] contracts on the platform where accounts can be frozen at will by the issuer.
And as if all of this weren’t enough, there is no strong leadership or governance on the protocol. With Larimer stepping down a few days ago and Brock Pierce being unceremoniously dismissed earlier this year after John Oliver exposed him on HBO (https://news.coinsquare.com/digital-currency/eos-block-one-officially-ends-relationship-brock-pierce/).
However, we can’t even entirely verify that information because Brock Pierce has been seen speaking on $EOS as recently as August (after $EOS claimed to have parted ways with him in March):
- $EOS is a bunch of liars and they simply said that Brock Pierce was no longer with Block.One because of the bad optics surrounding him and his alleged involvement in the rape of several boys
- $EOS has lost two of the founding leaders of its supervisory organization (Block.One) in less than a year after they raised over $4B.
None of this speaks to the vast (and growing) number of technical issues with the protocol (https://github.com/EOSIO/eos/issues) or the complete and total lack of transparency and accountability for the money that was raised by $EOS.
We have no clue what it was spent on, how much is really left, how much was just pocketed, and whether they’re even being efficient with the money.
What’s even worse is that Brock Pierce and Larimer were two of the primary attractions that drove investors into $EOS. People trusted Larimer because of his close proximity to Satoshi Nakamoto (they had some forum back & forths), as well as his previous ‘successes’ with Steemit & Bitshares.
Brock Pierce was former president of the Bitcoin Foundation and was able to tap into his network to help spread credibility and hype that way as well.
Now, it appears that:
The leadership of Block.One is absent.
There is no clear plan for leadership/governance going forward.
The protocol is more centralized than ever with dangerous collusion that essentially undermines the concept of blockchain itself and essentially makes $EOS no different than trusting 21 random people on the internet (whom are all in cahoots with one another) to handle your money and be responsible with it despite the fact that there is almost no identifying information on them.
There are numerous technical issues.
Zero transparency from Block.One ; no one knows where any of the money really went and less than 6 months from the start, the lead developer of the project has gone off to ‘do other things’ without telling us what the hell is going on or how much of that $4B he stuffed in his pockets before he exited.
$EOS is a shitshow. I’m not allowed to give you financial advice, but I personally would not hold $EOS if you gave it to me for free. This project was doomed to failure from the start in my opinion and I honestly can’t see it lasting much longer.
That’s all I have to say on the $EOS matter. Take it for what it is.