Is EOS recycling ETH?
According to the eos website..
during the entire EOS Token distribution period, block.one will not do any of the following: block.one will not purchase EOS Tokens by any means; block.one will not pay any dividends to its shareholders; and block.one will not perform any share buybacks. block.one intends to engage an independent third party auditor who will release an independent audit report providing further assurances that block.one has not purchased EOS Tokens during the EOS Token distribution period or traded EOS Tokens (including using proceeds from the EOS Token distribution for these purposes). This report will be made available to the public on the eos.io website.
However, they have been sending a lot of ETH around already with large amounts going on to the exchanges. Why would they do this? I can understand moving on to cold storage.. BUT, that is not what is happening. Here is evidence of a 40k ETH transaction going to Bitfinex:
https://etherscan.io/address/0x9937dbb2128b55c44d8af7bf36fd76796a814cf4#internaltx
So, what do you think they are doing?
From the FAQ:
What does block.one plan to use proceeds from the EOS Token distribution for?
Will block.one be contributing to the EOS Token distribution?
Question... how can you put an account at Steem "blockchain" to -10 with a click?
Thats a legit question I have now before I invest any cent in any token from your "blockchains" in future. Not looked at the case in detail but thats worse than the centralized cencorshipment of fb & reddit combined im my eyes.
@Dan - I have read your faqs already. So let me ask a couple of questions that your FAQs do not tell me.. When will this audit be available? And why are you continuing to move so much ETH. 180k now worth nearly $4million.. do you really need that much already to start your business. All I have seen is the fact that you have hired 4 people.
Can you link the FAQ page?
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@dan can you give us some insight please? Why do you have eth raised from the ICO sitting on the exchange? And why are the exchange prices higher than what you can buy for through the ico?
It seems pretty obvious that they are cashing them out to pay for development costs. In what way is that sinister? Do you expect them to hold the ETH forever - or would you prefer they cashed them out in one go and crashed the ETH price?
Do you really think they need $4million already.. they have only apparently hired an additional 4 developers. Since I wrote this article a further 160k ETH has been moved.
I think they are in a better position to know that than us - we are not privy to their costs or what exactly they are doing development wise.
I find it odd that after raising all these funds you expect them to just sit on them forever.
They may want to mitigate the risk by cashing out over time (in case of any falls in the ether price).
That makes perfect sense to me. In the case of the original ethereum ICO by the time the BTC raised was sold the price had collapsed and the core development team lost a lot of money as a result of that.
Seems to me like you are panicking over them doing exactly what they would be expected to do.
It makes little sense.
I think we should all be critical when the price of EOS tokens are trading on the exchange for more than what you can acquire through the token sale itself.
You have to also consider that EOS is potentially going to be a direct competitor with ETH in the future.
I asked a pretty direct question and was shown the FAQs - that is not a response.. that is a politicians diversion tactic. He could've easily said hey look we plan on moving all eth into FIAT (or whatever) over the course of the year. And for these reasons.. this ico is just as much a joke as all the other ones..
They think they can simply collect everyones funds and not be accountable to anyone.. why would they not give the respect to answer legitimate questions with some solid statements.
I am not an investor in EOS and I am also getting out of ETH so I dont have any biased views. Just after some answers.
Markets are not always rational. The trading price is not under the control of the EOS team.
That section of the FAQ does answer your question in that it makes clear that they are not breaking any of the terms listed there.
Further you are lucky you got any answer at all as I suspect they are very busy.
Just because you can see some things on the blockchain does not entitle you to all sorts of answers about how they do business.
Name any other business that answers direct questions about how they move their funds around to members of the public.
Indeed try asking a non-blockchain company for that kind of information - I doubt you will get a response at all.
If you are not invested what is the problem?
You seem to be under the impression that you are due some answers anyway.
I fail to see why you think that.
I think it is more than reasonable to be able to ask any company what they are doing with funds the gathered from the public.
Everyone should be critical.. I can easily write some FAQs as well. And yes, companies are accountable to their shareholders. Even though EOS has said that holding tokens gives you no rights at all.. they should still respect where their money has come from.
Why should I care? Am I not allowed to get my questions answered before investing?
I think you are being unrealistic. Go and ask Facebook or Google for the information on their accounts - see how far you get. Further you are not buying shares in this case and even if you were - there are limits to the information you can get - you can't just message Sundar Pichai if you are wanting to buy Google shares and ask for any figures you feel like. That is patently ridiculous.
meep
this indeed looks weird. Let's hope he responds