Digital Currency EOS came under the spotlight this week after allegations emerged that a key part of its blockchain governance, led by Chinese crypto exchange Huobi, may be involved in a corruption scandal. Houbi, which is one of the world’s oldest and largest cryptocurrency exchanges and an EOS block producer is alleged to have been accepting bribes in return for votes which support particular governance decisions.
An anonymous Twitter account going by the name of “Maple Leaf Capital” posted a number of screenshots showing what appeared to be a leaked Excel spreadsheet with proof that Huobi was accepting bribes in exchange for votes.
And for a follow-up, Huobi is now pushing their HPT token — which if I'm not mistaken is blatantly sharing the EOS block rewards with HPT holders in exchange for EOS lock-up. See my break-down here: https://t.co/a1fBqpItcg
— Maple Leaf Capital (@MapleLeafCap) September 29, 2018
Both the parent company of EOS and Huobi issued public statements regarding the bribing for votes allegations. However, both have so far refused to admit or deny the allegations.
EOS is the native currency of EOS.IO, a blockchain protocol operating as a smart contract platform and decentralized operating system intended for the development, hosting, and execution of decentralized applications (dApps). Initially launched on the 31st January 2018, EOS.IO operates in a similar way to web-based applications, maintaining similar structural principles, making it comparable to Apple’s App Store or Google’s Play Store.
Block.one, the company responsible for developing the EOSIO software, said in a statement:
“We are aware of some unverified claims regarding irregular block producer voting, and the subsequent denials of those claims. We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process.”
The Rise of EOS
Since its launch in January, EOS has gone from strength to strength. In 2018, EOS is actually down the least this year, falling down just 23.4 percent, whilst other leading cryptocurrencies have experienced an average decline of 74 percent. EOS is considered less decentralized than some of its blockchain peers. It applies a more centralized approach towards confirming the transactions on the EOS.IO network.
However, since September, EOS has fallen significantly, dropping from highs approaching $6.80 to lows touching $4.98. EOS today has fallen 1.41 percent, trading at 5.7037
