The creator of Eos (EOS), Block.one (B1), faces renewed legal action as the EOS Network Foundation (ENF) gears up for a lawsuit. This move has spiralled after concerns that Block.one failed to invest $1 billion following its momentous $4.1 billion raise in 2018, thus causing considerable complications for the EOS community. ENF’s founder and CEO, Yves La Rose, announced on July 25, his intent to hold the firm accountable for such breaches.
However, plunging into the labyrinth of litigation does not guarantee more significant payouts for plaintiffs. Yves La Rose highlighted that potential plaintiffs would have to withdraw from their existing lawsuits against B1 to join ENF’s new lawsuit. This option could bear heavier fruits, but it might also end in null compensation, affirming the uncertainty that looms over class lawsuits.
Nevertheless, this contemplative action could widen the possibility for non-covered participants in the current class to seek justice. While the earmarked $22 million offered by Block.one may seem considerable, its comparative insignificance on the scale of a $4 billion raise propels the conversation to a broader question – is this reparation sufficient to appease those affected?
Perhaps this is where the potential risks and rewards play out. Block.one’s EOS Initial Coin Offering (ICO) garnered historical fame, having raised a whopping $4.1 billion by June 2018, thereby considerably outflanking Telegram’s $1.7 billion ICO. However, EOS’s descent began manifesting towards the end of the year-long crowdsale as it sauntered downwards, trading at around $12 – a significant decline from the peak price recorded in April 2018.
Despite experiencing monumental fluctuations, EOS retains its standing among the largest cryptocurrencies by market capitalisation, securing a substantial $827 million value at the time of writing.
In retrospect, EOS also agreed to pay a $24 million fine to reconcile with the United States Securities and Exchange Commission over unregistered ICO allegations. From then onwards, a string of discontented investors spurred a chain of class-action lawsuits arguing that the firm had fallen short on broadcasting aspects of its financial history, operations, budget, executive compensation, and material trends.
In summation, it seems the scales of compensation and dissatisfaction continue to tip in the world of cryptocurrencies. While the potential gains of shuffling legal actions dangle attractively, the gamble opens a chasm of insecurities where the endgame might result in receiving nothing. This twist of fortunes could present a newer perspective to interested crypto enthusiasts, who would wisely consult their legal counsel to tread the fine line between caution and ambition in the continuously transforming landscape of digital currencies.
Source: Cointelegraph
