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Mike Dudas, the founder of crypto outlet The Block and co-founder of LinksDAO, expressed dissatisfaction with the SEC’s handling of the EOS case in 2019.
He thinks the regulator has failed to checkmate the real bad actors and has chosen to crush the few useful web3 firms currently on the market.
Dudas also expressed concerns over the EOS project.
insane that eos was able to conduct a $4b+ ico over a year in 2017-18, then settle with the sec for $24m in 2019 and operate like nothing happened
— Mike Dudas (@mdudas) June 12, 2023
now trades at a $750m market cap 5 years later
team basically disappeared and delivered virtually no part of its "roadmap"
According to him, the EOS project was able to conduct a $4 billion ICO, then settle with the SEC for $24 million in 2019 and continue to operate as if nothing happened.
Clearly disappointed at the project’s current state, Dudas has accused the team of disappearing without executing any part of its roadmap.
EOS is a smart contract project founded using open-source technology by Block.one, a Cayman Islands-based company,
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It’s worth noting that the web3 space has never witnessed an initial coin offering (ICO) like that of the EOS project. Throughout the distribution period, EOS tokens were also being traded on select cryptocurrency exchanges, enabling investors to watch EOS’s market sentiment and progress before contributing.
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When the EOS platform was launched, some viewed it as one of the most promising layer-1 blockchains in the crypto industry. However, the EOS token has lost a significant chunk of its ICO value five years later.
Data from Coingecko shows that EOS hit an all-time high of $22.71 on April 28, 2018. The price of EOS is hovering around $0.67 at the time of writing.
A Bloomberg report in May 2019, quoting a Block One letter to shareholders, revealed that early investors had received profits up to 6,567 percent during a buyback with Block.One reinvesting its funds in government bonds and bitcoin (BTC).
In September 2019, the Securities and Exchange Commission reached a $24 million settlement with Block.One for selling unregistered securities to US residents via the EOS token sale.
Dissatisfied by the outcome of the SEC-EOS case and the current harsh cryptocurrency regulatory climate in the US, Dudas has criticized the regulator for seemingly turning a blind eye to the activities of the real bad actors in the space, deciding to go after the few quality projects instead.
Read more: SEC slams CoinMe with $4m fine over unregistered ICO