EOS Revamps Tokenomics, Trump-Token Recovers Post-Verdict Dip; Terraform Nears SEC Settlement
Summary:
EOS, a former top-10 crypto project, adopts a new tokenomics standard, promising a renewed environment for its community and developers. Meanwhile, the TRUMP token, linked to Donald Trump, took a 16% dive after his guilty verdict in a hush money case but quickly bounced back. In other news, Terraform Labs and co-founder, Do Kwon, are nearing a settlement with the U.S. Securities and Exchange Commission (SEC) over a fraud case.
EOS, previously in the top-ten of crypto projects according to market capitalization, has embraced an innovative tokenomics model promising a rejuvenated environment for developers and contributing community members. Meanwhile, Donald Trump's verdict of guilt in a hush-money case from New York severely impacted the token's value with a fall of 16%, which has since bounced back to its pre-trial state. Concurrently, Terraform Labs together with its co-founder, Do Kwon, are wrapping up a deception settlement with the U.S. Securities and Exchange Commission (SEC).
EOS has given the thumbs-up to a freshly devised tokenomics structure to breathe life back into what was a hopeful network. Per an announcement that came out on May 31, the EOS Network Foundation will bring down the maximum number of the EOS cryptocurrency from the current 10 billion to 2.1 billion. The foundation has also initiated a four-year halving period and vowed to present "large-scale staking incentives" for sustained token lockups.
Several community members expressed scepticism regarding the new scheme, particularly those who've held possession of the cryptocurrency since its preliminary token sale in 2018. Initially, overseen by Block.one, EOS managed to accumulate an impressive $4.1 billion during its year-long initial coin offering. Unfortunately, the subsequent period witnessed unfulfilled project ambitions, lengthy legal feuds, and a final resolution with governing bodies. The latest data from CoinMarketCap shows EOS's market cap hovering around $935 million, a significant decline from its highest of $15 billion in 2018. Post-May 31, the token value has barely budged, hovering around $0.80.
The remarkable recovery of the leading meme coin associated with U.S. presidential candidate Donald Trump, post a 16% drop when he was convicted on 34 charges involving falsifying business documentation, grabbed many eyeballs. This conviction was connected to Trump's attempt to hide a hush-money transaction with adult film actress Stormy Daniels, which now heads towards sentencing. TRUMP token's value dipped 16% before racing back towards a 24-hour spike.
The MAGA (TRUMP) token, linked to Donald Trump, saw a value-depletion of over $130 million within a time-frame of 20 minutes after the news, as per CoinGecko, experiencing a dip from $13.48 to $11.27. The token value showed excellent resilience and stands at $14.70 at the moment of reporting. It is a mere 1.5% short of reclaiming its 24-hour peak of $14.92.
Terraform Labs and Do Kwon have consented to resolve a fraud case with the SEC, following their liable ruling for investor deceit. Expected to be up for court approval by June 12, 2024, the legal teams from both sides have revealed that a settlement is on the horizon. In its lawsuit against Kwon and Terraform, the SEC maintained that they misled investors during the promotion and sales of crypto tokens, particularly the ill-fated algorithmic stablecoin TerraUSD, by offering crypto assets without a valid registration.
As part of their settlement, Kwon and Terraform possibly face severe financial penalties with the SEC demanding around $5.3 billion. However, Terraform has offered a much lower penalty proposal of $1million. Do Kwon was arrested in Montenegro in March 2023, further complicating the potential charges. This report contains additional contributions from reporters Geraint Price, Sam Bourgi and Felix Ng.
Published At
5/31/2024 9:49:32 PM
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