EOS price trading sideways as Block.one outlines voting conditions

EOS price trading sideways as Block.one outlines voting conditions
  • Block.one has outlined three conditions it has before it supports EOS candidates
  • EOS has been sued by the Crypto Assets Opportunity Fund (CAOF) last week for misleading investors
  • The price action is trading between two important technical indicators

EOS price is still trading below the 100-DMA after failing to keep its head above this important technical indicator last week. Separately, Block.one announced it will vote for EOS candidates, however, the open-source software provider named some conditions. 

Fundamental analysis: Three conditions outlined

Block.one, which owns 10% of the total supply of EOS tokens, named the requirements the block producer’s (KP) candidates must fulfill in order to get Block.one’s support, the company  announced last week.

The criteria that Block.one outlined involves three requirements:

1. The general location of the node has been disclosed publicly through the BP JSON file;
2. The block producer candidate’s node should be publicly queryable;
3. The node should be running EIOS v2.0 or higher.

A JSON file, mentioned in the first requirement, is like a block producer’s public statement, which contains essential information like names and contact info. In other terms, the company wants a BP candidate to reveal its location before lending its vote and support. 

Kevin Rose, the former boss of BP EOS New York, who currently manages the relations between Block.one and the EOS community, said the first requirement was only a factor to be taken into account when deciding who to support.

When asked why the company wanted to know BPs’ location in the first place, Rose said: 

“As with any public decentralized blockchain, understanding the general geographic distribution of block producing nodes is helpful information for self-evident reasons.”

Last summer, Block.one’s former chief strategist Brock Pierce said that the alterations made in the EOS governance system meant that the platform had been taken over by a group of China-based BPs, which he described as a “Chinese oligarchy”. 

Still, Kevin Rose denied that the location requirement was about promoting specific countries. He said it wasn’t a regulatory condition, but rather a factor to be taken into account when deciding for whom to vote. 

“While we do not value one jurisdiction over another, this voluntary location disclosure is something that has been organically championed by the general EOS community, so we chose to embrace it as we begin voting for the first time,” Rose added.

Invezz reported last week that EOS’ Block.one has found itself on the receiving end of a new lawsuit, with the Crypto Assets Opportunity Fund (CAOF) targeting EOS’ high command for misleading investors.

Technical analysis: 

Looking at the daily chart, the price action is currently trading between the two important technical indicators. Below, the ascending trend line keeps supporting the EOS price at $2.46 from breaking down, and still offering a chance to buy EOS below the $2.50 mark.

EOS weekly chart (TradingView)

On the other hand, since the price action broke below the 100-DMA resistance at $2.64 last week, it has been unable to get back above it again. Therefore, the buyers will be aiming to clear this resistance to pave the way for a trip towards the next resistance near the 200-DMA at $3.04.

Summary

EOS price is trading in between the two important technical indicators after the price action broke below the $2.60 mark last week. In the meantime, Block.one outlined three conditions that have to be met before voting for EOS candidates. 

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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