I am still a newcomer to this entire cryptocurrency thing and most likely I don’t understand most of the things that happen behind the scenes. But I do understand that overall, this still seems to be a great opportunity for people to make money, especially if they invest in high quality cryptocurrencies like EOS.
That is what I thought at first, at least: EOS is a strong, extremely interesting cryptocurrency, backed up by big, trustworthy names in the industry. In my opinion, this is one of the cryptocurrencies of the future.
But if that is the case… why is EOS crashing right now?
Here is a chart showing the EOS/BTC price evolution recently on Bitfinex:
By all means, this is crashing. Going down like a rock in a lake. Horrible.
Horrible, especially because a large chunk of my portfolio is EOS. But still not insanely bad, because I just bought it. Am I crazy to invest in a cryptocurrency that is sinking like a lost ship?
I might be and I might be terribly wrong. After all, I’ve only been studying cryptocurrencies extensively for the past month and a half. And back then, EOS was riding high, actually.
Now, it’s going down fast. WHY?
I have no idea, to be honest. Most likely, people started selling out to cash on some profits when the cryptocurrency was riding high. This, in return, started to lower the price overall, resulting in more people willing to sell, afraid that they will lose money.
I know of people who bought it at $5, so it makes sense to start selling – especially if they don’t trust this currency as much as I do and only saw it as an opportunity to make some quick profits.
On the other hand, there has been some stirring on the Chinese markets. China and most Asian markets have an extremely important word to say on the cryptocurrency market. Combine that with the fact that reports suggested that the big token holders started selling their EOS and crashing the prices in return and you have the recipe for disaster.
This is one of those disasters that is either here to stay, either ready to rebound at any given time and give those who decided to invest in a crashing currency some impressive returns. I really hope it’s the latter, although not knowing the exact answer to the question “why is EOS crashing” and therefore not understanding the situation completely doesn’t keep me as confident as I could be.
I have personally invested a small amount (in the crypto world) in EOS: just around $200. If I am right and the price will get back to much better values (I am expecting it to grow to around $4 per EOS token), then I am looking at around $400 in profit, which is a nice thing to think about.
But, like everything when it comes to trading on the stock market, FOREX or the cryptocurrency markets – nothing is certain.
My take? I’ll keep my eyes on the EOS evolution and I will have faith in it until it drops to 50 cents. If it gets there, I’m going to take it to the chin and consider it a loss. Otherwise, I still have faith in this cryptocurrency. It’s just a regular adjustment after a slightly inflated price and tons of initial hype.
What do you think though? Is EOS a coin to keep money in or buy at the current, crashed rates? Even more – why is it crashing so hard right now and seemingly sinking without a trace?