Price manipulation during the EOS ICO?
The EOS token sale raised $ 4.4 billion between 2017 and 2018, becoming the largest Initial Coin Offering (ICO) in history and a recurring subject of controversy.
A new study published by John Griffin, professor of finance at the University of Texas, and by the analysis firm Integra FEC, has uncovered new evidence of irregularities in the form of a set of “suspicious trades” during the ICO. The study claims that manipulation played a key role in determining the price of the token.
EOS has reportedly been washed-traded on Binance and Bitfinex in an attempt to artificially inflate prices. Wash-trading refers to the process by which an entity acts simultaneously as a buyer and seller of the same asset in order to artificially increase volume and manipulate prices.
The researchers explained that this manipulation technique created the illusion of demand for the token and pushed up prices. The funds identified as suspect amounted to 1.2 million Ether (ETH) or approximately $ 815 million at the time.
In the SEC’s sights?
The United States Securities and Exchange Commission (SEC) previously fined EOS $ 24 million in 2019 for failing to register its ICO.
In 2020, several investors sued Block.one, alleging that the company behind EOS violated securities laws by making “false and misleading statements”, which artificially inflated the prices of the EOS token. . A settlement of $ 27.5 million was reached in connection with this class action lawsuit in June.
Block.one had said that ICO funds would be used to build applications that would accelerate blockchain adoption. A promise that is far from having been implemented. In June 2020, a study suggested an exodus of developers using the network.
Today, EOS drops to thirtieth place in terms of capitalization with a capitalization of $ 5.2 billion.
👉 To read on the same subject: Block.One (EOS) lawsuit: $ 27.5 million will be paid to investors
About the author: Florent David
Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFT).
All articles by Florent David.