EOS has largely under performed during this crypto rally and has dropped out of the top ten by market cap, but one industry executive believes it could be one of the best risk/reward digital assets right now.
Before delving into that, Dorman observed that EOS is the only major crypto asset apart from XRP that has not made significant gains during this rally. Over the past twelve months, EOS prices have declined by 26%, with losses recently accelerating due to the resignation of CTO Dan Larimer.
But with plenty of “zombie projects” up 300% to 1,000%, he believes EOS provides a good risk/reward opportunity.
Block.one owns 140,000 BTC worthh an estimated $5.5 billion at current prices according to data compiled by a financial comparison platform Bankr.nl. The CFA compared the market capitalization of EOS with that of its Bitcoin holdings;
Dorman stated that generating a Return On Investment, or ROI, from Book Value is essentially taking a gamble on what management will do with that capital. Block.one and the EOS teams have done very little to instill confidence, he added.
He concluded that any one of these three options will unlock this value and close the gap between EOS’ market cap and the value of the Bitcoin on Block.one’s balance sheet, which currently stands at $1.5 billion more than the company raised in its May 2018 ICO.
“To be clear, you are NOT buying Bitcoin by buying EOS. Block One does own 10% of the EOS token supply. They update the eosio code. But EOS is a public blockchain. And B1 does not reward EOS token holders with their Bitcoin holdings.”
At the time of writing, EOS was trading at $2.80, flat on the day and down almost 13% over the past week.