EOS & Block. One May Have Faked ICO Demand

May 27, 2019   EOS

Suspicions rose very high after the Dutch auction ICO sale. EOS recorded high prices and demands. Reports are saying that the owners created fake demands by recycling ETH.

A recent report reaching us is that there may have been some manipulations in the ICO last year. The sale of EOS during the 2017 & 2018 auction had more demands and price hike than everyone expected.

As a result, suspicion rose that the owners may have recycled ETH to boost it. Recently, new evidence is proving what everyone has been suspecting. We hear that Block.one is guilty of spending Ethereum to increase the demands. Whether it’s true or not, we are working with research results.

The Accusations May Be Right After all as New Evidence Emerge


Alethio Data Science is showing that people’s speculations may not be wrong. A report which the startup presented seems to prove that there were modifications on EOS market prices during the sale. The accusation is that Block.one raised $4 billion but couldn’t provide any data showing how they spent the funds. Alethio Data has spent time to track blockchain activities, and this is their discovery.

To enumerate what the report says, it seems that the company transferred funds from the sale wallet. This was even before the close of the sale. Five days through the EOS sale, the company withdrew the first funds from the wallet and kept doing so.

Insight Into the EOS Asset


EOS records funds inflow from Ethereum. Its price in the market is almost the same as the auction price daily. After the completion of the sale, the market price for EOS continued to be stable. What surprised everybody was that the bear market didn’t even affect it. The price remained between $4 & $6 for many months.

Another cause for surprise was that the company withdrew a lot of funds while the sale was ongoing.

The report from Alethio Data mentioned that the total number of withdrawals which EOS made was 99 times. The withdrawal which took place while the sale was going was 93 out of the 99. The total of these transactions was 7.75 million ETH. This figure represents 90.8% of all the funds which the company raised during the auction sale. Judging by this window, the company withdrew every 3.8 days. 

Funds Movement during the Sale Sparked Suspicion


We believe that this movement of funds which Alethio observed caused them to be suspicious of manipulations. According to their conclusion, it seemed that the ICO kept recycling ETH to stimulate people’s interest. No one can say otherwise yet because the constant flow of funds in & out of the wallet looks suspicious.

Also, Alethio Data discovered that funds flowed between the Bitfinex_4ETH wallet & the ICO’s Ethereum address for EOS. The research also believes that the manipulators carried out the act by injecting ETH. The reason being that there was no lock on the EOS tokens. So, the owners could move it or sell during the auction. Moreover, ETH funds were also flowing freely.

Author: Ali Raza for Crypto-Rating.com
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