EOS Settles with SEC for $24M: Mike Dudas Expresses Concerns
• Mike Dudas, the founder of crypto outlet The Block and co-founder of LinksDAO, has expressed dissatisfaction with the SEC’s handling of the EOS case in 2019.
• He thinks the regulator has failed to checkmate the real bad actors and chosen to crush useful web3 firms.
• EOS was able to conduct a $4 billion ICO over a year in 2017-2018, then settle with the SEC for $24 million in 2019 and continue to operate as if nothing happened.
Mike Dudas Criticizes SEC and EOS
Mike Dudas, the founder of crypto outlet The Block and co-founder of LinksDAO, expressed dissatisfaction with the SEC’s handling of the EOS case in 2019. He believes that instead of tackling real bad actors, it has chosen to crush useful web3 firms currently on the market.
The Initial Coin Offering (ICO) by EOS
The entire web3 space had never witnessed an initial coin offering (ICO) like that of EOS. Throughout its distribution period, tokens were also traded on select cryptocurrency exchanges, enabling investors to watch its market sentiment and progress before investing.
EOS’s All Time High Price
When launched, many considered it one of the most promising layer-1 blockchains in crypto industry. However, it has lost a significant chunk of its ICO value five years later. Data from Coingecko reveals that EOS hit an all-time high price at $22.71 on April 28th 2018 whereas currently hovering around at $0.67.
Block One’s Buyback & Re-investment Policy
A Bloomberg report revealed that early investors had received profits up to 6,567 percent during a buyback with BlockOne reinvesting its funds into government bonds and Bitcoin (BTC). In September 2019, it reached a settlement with SEC for selling unregistered securities worth $24 million.
Though initially viewed as one having promising future prospects for blockchain technology; however due to various reasons like settlement deal with SEC etc., it is now trading way below its all time high price point..