A major change in personnel at EOS: Co-founder Dan Larimer surprisingly leaves Block.one, the company behind EOS. Larimer is known in the crypto scene as the founder of several successful projects at once.
The crypto company Block.one and thus also EOS will have to do without co-founder and chief developer Dan Larimer in the future. Larimer himself writes publicly of a “resignation”, Block.one speaks in a blogpost of a “departure”. Larimer had been with Block.one since the beginning in 2017 and was partly responsible for EOS’ successful ICO, which raised around $4 billion. Even before that, Larimer co-founded BitShares (BTS) in 2013 and STEEM in 2016, two projects that have remained in the crypto industry to this day. A proven expert, Larimer cites as the reason for his withdrawal from Block.one and EOS that he wants to focus in the future on projects that technologically guarantee protection against censorship.
This reason given by Larimer can certainly be read between the lines as criticism of Block.one and EOS, which have financed just such a social network with Voice, which is supposed to be free of censorship attempts through blockchain technology. In other interjections by Larimer from recent days, he criticizes Twitter’s banning of still-US President Donald Trump and the removal of the app Parler from Google and Apple, among other things. Parler is known for also providing a platform for far-right thoughts and radical Trump supporters. Whether Larimer counts himself among Trump supporters remains conspicuously ambiguous.
EOS weakens, Block.one with huge cash reserves
After Larimer’s departure from Block.one became known, the price of EOS plummeted by around 20 percent, which can be explained, at least in part, by significant losses also in Bitcoin (BTC) and other leading cryptocurrencies. However, Larimer does not have the reputation of being a “breakfast director” attached to him, but has never withdrawn from active development work. Brendan Blumer, CEO at Block.one, also once again emphasized Larimer’s contributions to the company’s success.
The very same Blumer had announced on Twitter in mid-December that Block.one had expanded its reserves in Bitcoin far beyond the 140,000 BTC previously known. This means that Block.one holds reserves of well over 4 billion US dollars at current prices. Vaguely, it is said about future plans at Block.one that they are working on projects in which Bitcoin will not only serve as a store of value. EOS, meanwhile, has fallen out of the top 10 most important cryptocurrencies by market capitalization in 2020 and has not been able to generate interest through new practical use cases for quite some time. Thus, it remains a mystery what Block.one is actually planning to do with the money of early investors.
Conclusion: EOS loses prominent face with Larimer
Whether you like him or not, Larimer has always been a guarantee of attention in the crypto industry for Block.one and EOS, in addition to his technological expertise. EOS will now miss this figurehead. At the same time, however, there is also an unscripted rumor that Larimer is privately getting caught up in radical political positions. There is a fine line between standing up for freedom of speech and supporting extremists, which Larimer apparently does not want to accept.
For you as an investor, it is important to observe the further development of EOS and Block.one with due skepticism, especially the handling of the remaining cash reserves. For the crypto scene in general, it will be exciting to see which project Larimer will support or launch next. After all, Larimer, a multimillionaire, is not expected to withdraw completely from the public eye. His blog bears the somewhat cryptic subtitle “The Subtle Art of Real Democracy” and criticizes prevailing conditions.
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