Long EOS vs Short ETH

June 3, 2019 08:30 AM
Bitcoin U$8,524.00; -3.58%
Ethereum U$262.75; -4.02%
EOS U$7.4074; -7.64%
Crypto Update

Crypto Update



Bitcoin  U$8,524.00;  -3.58% | XRP  U$0.4532; -0.28%
Ethereum  U$262.75; -4.02% | EOS  U$7.4074; -7.64%
Litecoin  U$113.88; -3.73% | Bitcoin SV  U$221.25; +15.10%

Two Sentence Summary: Crypto is on balance lower with only 2 of the top 10 coins positive. Bitcoin SV (BSV) remains the outperformer +15% in the past 24-hours.


We Have For Some Time Highlighted Long EOS Vs Short ETH As A Medium / Long-Term Opportunity - Several News Items Have Underscored Our Thesis In The Last Few Weeks

  • A week and a half ago EOS blockchain maker Block.one announced a 10% buyback that would see the company repurchase shares at over a 100% gain from their initial issuance price last July. Alongside that announcement, the company released that they had exchanged the vast majority of the $4B raised last year to fiat and therefore avoided the contraction in their Treasury many in the crypto space fell victim to. In addition, the protocol has seen a slew of high profile dapps announce plans to launch. EOS continues to host the 3 most active dapps according to DappRadar.

Takeaway: Our thesis for EOS / ETH has pointed to EOS being both better funded and further along in their development timeline yet only ~25% of the market cap of ETH. The announcement pointed out what had already been discussed in the media, that Block.one was sitting on some of the largest fiat reserves of any company in the space. Conversely, the primary supporter of ETH projects ConsenSys, has largely been thought to be funded through a declining supply of ETH and had been forced to make significant headcount reductions recently. Furthermore, from a fundamental development perspective, the major item in the ETH roadmap has been a switch to the proof-of-stake consensus algorithm, meanwhile, EOS was launched as PoS. The EOS / ETH spread nearly touched on new highs last week and has consistently made higher highs and lower lows (chart).

About the Author

FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets. You can subscribe to FRNT Financial Morning Note at https://www.frnt.io/morningnote