EOS Coin Offering To Exceed USD 4 Billion - Report

This is the largest fundraising in the blockchain sphere so far

by Kalina Tekelieva
30 May • 2.5 min
In News

Cayman Islands-based start-up block.one expects to raise over USD 4 billion in the initial offering of its digital coin EOS, due to close on Saturday, the Wall Street Journal (WSJ) reported on Tuesday leaving its sources unnamed.

The proceeds from the EOS initial coin offering (ICO) will top even the largest blockchain fundraising round so far, that of messaging service provider Telegram which collected USD 1.7 billion, the WSJ wrote. Moreover, only one or two initial public offerings (IPOs) on stock exchanges have gathered more funds so far this year.

The EOS platform

Block.one is developing the EOS software, which will allow developers to create commercial-scale decentralized applications (DApps). Now EOS is an ERC20 token built on the Ethereum blockchain, but the start-up will launch its own main network (mainnet) EOSIO on June 2 and the token will migrate onto its own blockchain.

As planned, block.one will invest over USD 1 billion of the money raised in the ICO in companies that will develop the EOS platform, according to the WSJ report. The firm itself does not plan to develop the protocol after its release and won’t operate any public network on EOS. However, where the rest of the money will go remains unknown, as the company executives have refused to comment on the matter.

The ICO

Since it initiated the coin sale on June 26, 2017, block.one has sold 994 million EOS tokens of the planned one billion, according to data on eos.io. The offering is scheduled to close on June 2 at 21:59:59 UTC.

According to a publication by blockchain security company PeckShield, only 48.3% of the EOS tokens were registered on the mainnet as of May 25. It is important for EOS holders to register their ERC20 EOS tokens on the EOS web site, so that addresses are identified after the mainnet swap on Saturday.

Reported bug

A few days ahead of the closing of the ICO and the blockchain migration, the EOS community was shaken by a report by Chinese internet security firm 360, saying it has found striking vulnerabilities in the EOS code. The publication, posted on Chinese microblogging web site Weibo on Tuesday, hinted that the launch of the EOS protocol might be delayed as a consequence.

In response to 360’s claim, EOS said on Twitter that its team has fixed most of the vulnerabilities and the platform will be released as scheduled.

One day prior to the 360 report on critical bugs in the EOS code, EOS CTO Daniel Larimer had announced in a tweet he is giving USD 10 000 for every bug discovered in EOSIO.