Why EOS will most likely be an Ethereum "Killer" (even if it doesn't work)
EOS tokens may actually be an Ethereum killer, but not for the reason you have been lead to believe. The reason is quite simple, and it is that block.one has collected ETH and sold EOS ERC20 subtokens. At the end of the sale in January 2018, block.one can sell ALL the ETH they have collected for USD, and crash the price of Ethereum... simple as that. They can do this without creating ANY software, as it is right in the FAQ. In fact, Dan says they don't even need the money to create the software, so why are they collecting money then? Is the goal just to try and kill Ethereum using a huge dump on to the exchanges?
What is Dan Larimer actually saying?
In the Anarchast video describing Ethereum being an EOS killer, Dan Larimer goes on to say some very strange things; he says they are "selling product", although what they are selling are EOS ERC20 Ethereum sub-tokens created out of thin air.
and then
"the money is not being used to build the software"
and
"block.one has already raised all the money it needs to build the software"
and also this nonsensical sentence:
"we're creating a token distribution because all blockchains need to be very widely distributed and so that's what we do, we simulate in mining because that allows everyone to participate and we stretched it out over a long period of time so yeah, uhhh... (pause) that's what's going on there"
What does "we simulate in mining" mean? You are either mining or you are just making coins out of thin air. ERC20 tokens like EOS are not mined, they are not even "simulated in mining", they were just created in one line of an Ethereum contract:
EOS=1000000000; He says
"it's about educating people about what I stand for"
... and in the same breath says he's
"actually not the one that's leading the company"
, like a complete disclaimer for what he stands for. So if he stands for good, then he's actually not leading the company so the company is bad; OR IS IT if he is a scam artist, don't worry because he's not actually leading the company?
also he says
"this is not a project run by me, this a very professionally run project"
; so projects run by him are not professionally run? But yet he is the CTO, and also doing the marketing videos?
And yet with $230 million in revenue, the money they don't even need according to Dan, but it gives them
"power to to do a lot of things (mumble, pause, unintelligible) build applications using our software"
..even though he just said they don't need the money to build the software... SO WHICH IS IT? Their Faq sections 5, and 24, specifically state they won't launch any blockchains using the EOS software, that they are going to use the money for
"general administration and operating expenses, as well as to build a blockchain consulting business focusing on helping businesses re-imagine or build their businesses on the blockchain, developing more open source software that may be helpful to the community and building decentralized applications using EOS.IO Software"
Then he says
"the team has got probably 30 to 40 people uhhhh across all the different sectors from marketing to (pause) engineering"
1. does he not know how many people are in the company? Which is it, 30 or 40? He's the CTO and he doesn't even know?
2. he mentions "the team" has marketing people.... if they have marketing people, why do they have Dan out doing these promo videos? Shouldn't he be programming? Is he the only marketing guy that could speak for them, with $230 million, that is the best they could get to market it? Where is all the other marketing?
3. "engineering"... does he mean programming? He makes no mention of other programmers... what engineering do they need? Or does he mean computer engineering... either way, it sounds like he just tacked that on to the end of his sentence as an after thought to make it sound more believable.
What to make of all this?
None of this sounds very promising so how do we figure out what to make of it all?
The contract code is there to read to see how the sale is being done and to see what they are doing with the money:
https://etherscan.io/address/0xd0a6e6c54dbc68db5db3a091b171a77407ff7ccf#code
One thing is for sure, they are withdrawing the ETH, not leaving it in the contract, transferring a bunch of ETH to Bitfinex:
https://etherscan.io/address/0x9937dbb2128b55c44d8af7bf36fd76796a814cf4#internaltx
And the current price of an EOS token is at about 7 cents, yet they are trading for over $1.78?
Dan?