The original 5 day distribution period has raised over 50 million dollars in the first 30 hours, and only has a total distribution of 200 million tokens.
This currently puts the price per EOS token at the price of 25 cents, but I have to believe that the price will exceed 1 dollar per token by the time that the contract finishes. There are likely still many high level and value investors that are waiting until the end of the contract to make there initial investment, so I think we will see the total amount invested increase drastically over the last 24 hours of the contract. I have made the choice to wait until the 23 hour periods begin, because there is honestly no rush to acquire stake and I want to get in a the lowest points that I can. I think that even 1 dollar per token is very undervalued compared to what the adoption EOS platform could enable it to reach, but I think that much of the investment we have seen during the initial period has been those whop simply don't want to miss out. The institutional and high level investment will be very present in the EOS token distribution, which hasn't ever been seen by any token distributions in the past.
The backing and support that EOS has been able to attain from many big and trusted players in the financial industry gives EOS the ability to attract a different type of investor compared to many other projects. The hype and excitement surrounding the EOS platform is evident, and I really think we are seeing the start of something huge. With that said, I still have no desire to over pay for my stake. It's not an easy task to buy at the best prices you can, but I think distributing my investment over many different periods will help me ensure that I am able to purchase near or under the overall average price. I truly think that by the end of the EOS distribution period a 1 billion dollar market cap would be completely feasible, but it would make EOS one of the market leaders from the very day that it launched.
The specific amount I estimate to be raised is just speculation, but there are many aspects that lead me to believe that EOS will be at the forefront of the cryptocurrency market after its launch.
While the length of the distribution period may seem unusual, I think that it will be very beneficial in terms of generating hype, excitement, and support of the EOS project before it even launches. As more investors and individuals hear about the token distribution, its possible that we will actually see the investment level per 23 hour period increase as the sale goes on. EOS has presented itself as a platform that businesses can use practically and efficiently, and the project is experiencing support from many firms and individuals from outside of the cryptocurrency community. Dan Larimer likely has had a very big impact on the amount of interest that the EOS project has seen, because he has consistently proven his abilities to produce reliable and next generation blockchains.
I don't think that I even fully appreciate just how powerful Graphene blockchain technology actually is, but combining the aspects of increased speed, efficiency, and fee-less transactions with a smart contract platform could truly change everything within the blockchain industry. The goal of the EOS project is to provide a realistic and achievable platform for businesses and users alike, and they have presented a more practical and improved method of reaching that goal compared to other smart contract platforms. The idea and goal of creating a platform is very important, but the technical ability to make that goal a reality is even more important. I think that EOS will totally revolutionize the cryptocurrency markets and projects over the years to come, and truly cannot wait until we can see it in action on a live network.
Why Are cryptocurrencies a more powerful form of ownership compered to stocks?
If the average token price from the distribution contracts was 1/dollar per EOS token, the market capitalization would be 1 billion dollars. While this is a huge number for a platform that hasn't even launched yet, when we consider the wide range of use cases EOS can offer it sounds much more realistic. If the EOS platform was adopted by the mainstream the market capitalization would be 100-1000 times that. While this will prove to be lucrative for investors, the changes and benefits that the EOS platform could provide to individuals could be so much more powerful. There is a legitimate chance that after adoption a 1 trillion dollar market capitalization could be completely reasonable, because the tokens have direct value based upon the use of the platform. When you invest in a stock you simply receive returns if the perceived value of the company increases, but you wouldn't ever use the stock for any practical use. If you had to possess ownership in the platform in order to use the platform, just imagine how much more valuable the stock and ownership in the company would be.
Everyone is hopeful and speculating about whether Apple will be able to be the first US company with a market capitalization exceeding 1 trillion USD, and it looks like they might be. Now just imagine that in order to use any of Apple's products you had to hold some form of 'stake' which entitled you to be able to use it. That's how I like to think of the EOS platform, because while there are no transaction fees put forth by the network, individuals are required to hold a minimal level of stake proportionate to the total network resources they wish to have access to. This means that any individual or business who wishes to interact with the EOS network or one of its DApps, will be required to hold stake in order to entitle them to sufficient resources for their desired interaction. This gives EOS tokens so much more value than simply an item that simply entitles you to ownership stake in a company.
This is not the way that many people look at Graphene based blockchain projects, but even the Steemit platform works using the same principles. In order to have access to the required bandwidth for interaction with the network, users must hold a minimal amount of SP in their wallets. The more stake of the platform that you hold, the more network resources that you are entitled to. This will work the same way on the upcoming EOS platform, but the platform may even offer a much wider range of potential DApps and practical use cases. The need to hold stake in order to interact with the network is a very powerful and important concept, and I think it will lead to cryptocurrencies to have more direct and real world value compared to many of the assets that exist on the traditional markets today.
I really hope that you enjoyed this post, and as always I urge you to leave any comments, input, questions, ect. in the comments below! Thanks for reading!