EOS is a big deal in the world of cryptocurrency: It had the largest Initial Coin Offering so far in history, at $4 billion last year.

It's also the primary challenger to leading cryptocurrency project Ethereum's supremacy.

The blockchain platform is currently ranked 7th among all cryptocurrencies, boasting a market cap just above $3.8 billion. Its Cayman-based parent company, Block.One, took a year to raise the ICO funds -- which is akin to an IPO in the business world -- that were ultimately used to launch the network.

The platform has drawn criticism, however, mainly for the 21 delegates who validate transactions on the network, as the model is quite centralized. Much like its primary competitor, Ethereum, EOS aims to become a scalable and an efficient platform, supporting the creation of decentralized applications (DApps).

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EOS Developments a Mixed Bag

EOS' Fundamental Crypto Asset Score (FCAS) climbed 0.77% over the last 3 weeks, driven by a 27-point (2.96%) spike in User Activity. Developer Behavior is down 7-points (-0.76) and Market Maturity fell 2-points (-0.26%). Price is up 14.93% over the same time period.

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The trailing three weeks have been an interesting time for the EOS team, underscored by some beneficial developments for the protocol, as well as a pair of troublesome trends. Positive news first emerged on Aug. 25, with the announcement that crypto custodian BitGo would be supporting EOS with the launch of a multisignature wallet and custody services. As one of the leading custody providers in the space, BitGo support will greatly improve the liquidity and accessibility of the EOS asset.

Then about a week later, "ICS Money Talks," an English-language business program in China, ran a segment focused on a major EOS-based gaming DApp, extolling the great potential of blockchain-based gaming. This was a major boon for EOS awareness overall, increasing demand for the asset and further establishing the platform as a foundation for DApp development.

This up-streak seemingly came to a halt, however, on Sept. 14, when a hacker managed to exploit a bug in an EOS-based gambling game, EOSPlay, making off with about $110,000 in the cryptocurrency. Conflicting reports emerged that the attack had overwhelmed and halted the blockchain, while others denied the full-stop occurred. Ironically, the attack pushed EOS' price to balloon more than 8% in the trading hours that followed.

Now, news emerged that LiquidApps, an emerging second-layer solution meant to improve the EOS scalability, has only managed to raise $2.8 million in its own year-long ICO. The lack of funds is an indication that ICOs as a vehicle for fundraising are becoming less effective, as well as the public's understanding and demand for Layer 2 solutions on top of EOS is lacking.

Our Hot Take

Navigating a public blockchain project onto the uncharted waters of the cryptoverse is a daunting task. Balancing volatile market dynamics, solving development challenges, finding product market fit, and driving user adoption can often feel like spinning plates upon thin-whittled sticks. What makes the journey easier, of course, is capital, and EOS has plenty of it. Its $4 billion ICO has provided the project with the means to drive development through extensive support for developers and open-source initiatives aimed at fostering a supportive and cohesive community.

Nevertheless, as a public blockchain with the ultimate goal of becoming decentralized, EOS has its work cut out for it. The efficiency of the current blockchain relies heavily on the 21 delegates who process transactions, many of whom are concentrated in China. However, the protocol does select these delegates through on-chain voting, so there are ways to better distribute influences on the network moving forward. Regardless, EOS is here to stay and stands as a premier platform for the creation of decentralized applications.