Cryptocurrency traders watching the charts today will likely wonder why altcoin, EOS is still seeing an over 15% increase, even though the momentum in the markets has slightly dropped off.
Well, the most straightforward reason behind the coin’s spike is a round of update on the EOS Telegram community by founder Dan Larimer. Dan told the community that the “biggest announcement since EOSIO is coming up on June 1,” raising hopes that an increase in the value of EOS will happen in the next four days.
The developer, however, did not reveal what plans the developer team has in store but only linked the incoming development to the fact the competing DApp platform, Ethereum suffers from a “poor initial design.”
Block.one 10% EOS Buyback
Aside from the ‘biggest announcement’ hint by Dan Larimer, Bloomberg reported last week that Block.one, EOS’s parent company would buy back 10% of its stock from stakeholders.
A 10% buyback would not be significant if not for the fact that it is taking place a few days before the biggest announcement and is set to give initial investors into the firm a whopping 6,567% returns.
In other words, the company’s original sale price of $22.50 is well dwarfed by its current repurchase price of $1500 given that the firm it is now valued at $2.3 billion despite the 2018 cryptocurrency bear market.
These developments combined with the positive sentiment in the crypto market is what has driven the price of the altcoin to as high as $8.1 per coin even though it started the previous week at roughly $6.
At the time of writing, EOS had a market cap of $7.3 billion, displacing Litecoin (LTC) as the fifth-most valued cryptocurrency.