The Curious Case of Block.One, The Company Behind the $4 Billion ICO

Why Block.One which raised $4 Billion in ICO is now in a problem

Block.one held an initial coin offering (ICO) of EOS tokens (EOS) in 2018, releasing 900 million tokens for approximately $4 billion, making it the largest ICO. Unfortunately, many people have been disillusioned with the company’s trajectory since then.

Yves La Rose, the EOS Network Foundation’s (ENF) founder, disclosed that they are gearing up for legal action against EOS founders Block.one in a major milestone of the EOS ecosystem against creator’s tale. Concerns were made about whether ENF will carry out its warning, if they even have a case, or if ENF has a morally relevant authority to do so. However, if and when they do, would that be the best solution, considering B1’s experience with corporate lawsuits and the fact that it has perhaps one of the strongest defense attorneys in the industry?

The EOS Network Foundation reported in a blog that several individuals of the EOS community are unhappy with Block.one.

“Block.one has not kept its word regarding past promises and that both the community and individual EOS users have been harmed as a result.”

The Foundation had previously publicized that it has been in talks with Block.one to identify a mutual understanding. Each party was involved in conversations in an effort to obtain a fair resolution. Block.one, on the other hand, has decided to walk away from the talks, according to ENF. Consequently, the EOS block producers determined that tenure for future EOS token revenues for Block.one should be frozen.

La Rose called EOS a failed experiment a few months back. He stated it’s a bad monetary investment, highlighting the market cap and price reduction. He also claimed that the community had lost important developers and had switched its major focus area largely from blockchain innovation to asset management.

The token sale was successful due to a barrage of marketing, enthusiasm, and velocity that pushed the price of EOS higher. Unfortunately, marketing and advertising began to decline soon after. B1 shifted its focus to forming a private firm and broadening its geographic reach. They claimed that a robust B1 would contribute to an enhanced EOS, but this never happened. Instead, the exact reverse has happened—unfulfilled promises, including the extravagant debut of Voice.com, followed by further unkept promises. Touted as a game-changing social networking service that would be developed on the EOS blockchain and reward EOS token holders, it was instead created on a private blockchain.

La Rose commented:

“We have been disappointed with Block.one’s reaction to our attempts to negotiate a solution following its failure to fulfill its commitments. As a result, we are exploring all possibilities to reach a resolution of this outstanding issue by other means.”

People became interested in EOS because of B1’s claims to create the community and setting needed for the ecosystem to thrive. It’s safe to argue that EOS would have been in a stronger place today if they had accomplished so. It’s a viewpoint shared by a large number of people within the community. Negative thoughts about EOS significantly influence sentiment today, as evidenced by media and the internet. The ENF claims that individuals who already have put so much money and effort into EOS have been significantly damaged due to B1’s failure to implement.

The manner in which B1 interacted with the EOS community has so far not helped matters. When discussing negotiations with the ENF and Brock Pierce, they have repeatedly and deliberately missed the chance to establish a fair and reasonable arrangement. They never interacted with the community, hardly attended to it, and turned down each request for a remark or an engagement.

This carelessness sparked outrage in the community, prompting Block Producers to terminate B1’s EOS token vesting timeline.

Ever since, the EOS community commenced on mapping its path ahead with a slew of new policies, financing, and rebrands, along with the takeover of EOSIO creation and implementation, new venture capitalists, providing funds for a myriad of task forces, acknowledgment grants, and newfound motivation. Gradually, all of the promises made by B1 are now being fulfilled as the EOS community regains command of its destiny.

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Image credits: Dan Freeman.

Disclaimer: The purpose of this article is to remove informational asymmetry existing today in our digital markets by performing due diligence, asking the right questions, and equipping readers with better opinions to make informed decisions. The writer holds Bitcoin, Ethereum, Cardano, Solana and Cosmos. The writer has a vested interest in the story.