$147.06 -0.70%
ETH · 32w

An EOS BP sells RAM @ $600k profit vs using for their DApp, simply opening an EOS acct (4kb RAM) at peaks cost $30. Rather than focusing on creating a network, EOS has found a more profitable business model: trading network resources. This is how you "kill Ethereum"?

Your town just decided to introduce fiber-optic Internet access. After deliberations and town halls, and careful planning by engineers, the community agrees to buy miles of cable for installation.

Then, just as the Mayor is about to sign the contract, members of the town council and chamber of commerce buy up every inch of fiber – and sell it back to the public at a massive premium.

That’s the situation facing EOS, a decentralized community whose governance is somewhere between the Philadelphia Convention and a free-market Lord of the Flies. Rather than focusing on creating new dApps and extending the network, some developers have found a more profitable business model: trading network resources. 

A speculative market has emerged for RAM, the gold of the EOS economy.  RAM is vital to the creation and growth of distributed applications. But unlike a token, there’s no secondary trading–RAM is bought and sold from the network, via an algorithm that mimics market pricing.

Because it is a scarce resource, RAM prices have skyrocketed in the past week, reaching a peak of 900 EOS per megabyte. Dan Larimer (CTO of EOS) has proposed revising the algorithm for pricing;  until then, an EOS Rich List, collected from data visible on the EOS blockchain, shows that users are hoarding hundreds of megabytes of RAM.

That bubble may be hampering the growth of EOS.  For one thing, simply opening a new account requires a fee of 4kb–which, at peak prices, cost around $30.


Ram prices soared over the past few weeks. Source: Ram for Sale

Some developers have made significant profits from selling their RAM. Everipedia, which seeks to establish a blockchain-based, for-profit alternative to Wikipedia, began buying RAM in June to airdrop its EveripediaIQ token. But as prices rose, they decided to sell instead.

Everipedia, along with its partners Ikigai Asset Management and Dollar Vigilante, constitut...

Continue on
Recent news
ETH -0.70% · · 13h

ETH Denver- Ethereum in 2019

Altcoin Buzz's Nathan goes to ETHDenver, meets Erik Voorhees and other key personalities and asks them about development in Ether in 2019. #Ethdenver #Ethere...
ETH -0.70% · · 16h

🐬 MKR marketcap just flipped NEO

#MKR (@MakerDAO) just flippened $NEO in market cap and is now heading towards $DASH, $IOTA and $XMR.Could $MKR be soon in the top 10 by market cap ?— Rui V. Maia (@ruivmaia)...
ETH -0.70% · · 17h

Metabase Network (META) was just listed on Bittrex

We've detected that Metabase Network $META was just listed on Bittrex! View on Bittrex: #crypto #Bitcoin $BTC— Cryptocurrency Alerting (@crypto_alerting...
ETH -0.70% · · 20h

Welcoming Neutrino to Coinbase

Blockchain intelligence is increasingly important in the crypto ecosystem, and is necessary to achieve our mission of bringing the open financial system to the world. By analyzing data on public…