What will happen to EOS price before and after the mainnet launch?

Everyone is interested what will the mainnet launch do the EOS price? What does history show in similar cases? Historically does price drop leading up to launch? Do the new tokens pump on release then dump? You get the drift.

Short answer is: the market will decide.

The token will carry on being traded on exchanges throughout the whole process without pause. The success of the pending mainnet launch will influence the price movements.

If the main net actually does what they claim it can then the price could very well explode. If it doesn’t live up to the claims, it could crash close to a zero.

EOS is very specific token: year long ICO which has seen 2million tokens added every 23 hrs.

EOS holders hope that because the tokens will be locked after launching, every token will be locked op for AT LEAST 3 days (all tokens start out staked), the price should freeze and keep steady level. The fact that block.one, the company behind the EOS software, won’t be selling 2m tokens per day anymore will also limit the supply and drive up demand.

eos

Additional plus are frequent airdrops, EOS are releasing 4 airdrops in June, they intend to reward their hodlers. This fact goes in favor of those who think EOS price won’t drop or even go up following the mainnet deployment.  Block.one could have been saving up this flood of airdrops and big news reveals for the main net launch. They know people like to dump and they will be working to break that trend with the airdrops.

It will be interesting to see how fast EOS token holders will activate their accounts. If most of them are lazy and fail to activate their tokens on time, it will take a while until most of the new tokens are activated. Less active tokens means less supply in the markets which will drive the price up. But on the other hand, it’s highly probable that most of lazy hodlers have their tokens in exchanges and that process of activation will be done for them automatically.

However, psychology is interesting and it clearly indicates what people do in similar situations: they sell. So, the most likely outcome is a slight selloff after launch because that’s just what people do. It’s the whole “buy the hype, sell the news” mindset. Where the launch will be the equivalent of selling the news.

For most traders there will be a massive dump in order to secure the gains. It’s a far better strategy as they can sit back and see if it’s worth buying again in the days following the launch, rather than risking everything.

The dump itself will be enough to push the price down, which then begins a cascade of sell orders.

We might even see a 75% correction before those buyers move in again to buy at lower cost.

 

intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitration still works like a charm, if you do it right! Check out Bitsgap, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Rene Peters

Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

We will be happy to hear your thoughts

Leave a reply

CaptainAltcoin
Logo