EOS (EOS): One of the things you need to be aware of when investing in cryptocurrencies is that there are news that come out, with the sole intention of manipulating the market. Such news especially negative ones are usually timed to pull down the market, and create buying opportunities for the manipulators.
One good example of such news is the recent news that EOS has some serious vulnerabilities that could potentially delay the main net launch. This led to a slight drop in the price of EOS, but it recovered after EOS came out to confirm that the vulnerabilities had been resolved. Today, EOS has come out again to reassure the community that the main net launch is on schedule. They did this through a tweet that read as follows.
This reassurance has served to push EOS upwards, and it’s now trading at close to $12. While EOS has survived this incident relatively unscathed, it serves two major lessons to investors. The first one is that when investing in cryptocurrencies, it is important to do a fundamental analysis first, and understand the strengths of the project you are investing in. The importance of doing a fundamental analysis is that, it allows you to hold on to your investment even when it is hit with FUD.
For instance, someone invested in EOS (EOS) based on fundamentals knows that this is a project that has the potential to significantly change the Dapps landscape. As such, even if the main net launch were to delay, it would have no bearing on the long-term value of EOS. It is only someone who invested in EOS based on hype that panic-sold after the news of a possible main net launch hit the headlines.
The second lesson is that before you make a crypto investment decision based on news, interrogate the motivations behind those news. For instance, the EOS delay news came just days before the main net launch. As a smart investor, the timing of this release should raise questions. Why wasn’t it released earlier, when it wouldn’t have any negative effect on the price? Was it in good faith?
Once you learn how to critique the information that you consume, you will stay safe from the panic that usually ensues after FUD hits the market. A similar thing has happened to Tron, which has also been hit with several fake airdrops just before its main net launch. All these are issues that a smart investor can easily interpret to mean that they are aimed at manipulating the price.
With this mind, this is probably the best time to hold more strongly to your EOS (EOS). The manner in which the team has handled the security vulnerability issues raised is an indicator that they are fully in charge of the process, and will lead this project to great heights. Once the EOS main net goes live, it won’t take long before the value of this crypto skyrockets. It will dethrone many platform blockchains from the market, and offer serious competition to Ethereum!