The EOS Network Foundation has initiated legal action against estranged parent Block.one, demanding $4.1 billion in damages.
The plans for the lawsuit against Block.one come just when the network seems to be getting back up after a 4-year halt in development. While some suspect the decision to be redundant, others think this could be the perfect way to start the network’s new phase.
EOS.IO is a blockchain protocol developed by Block.one that powers the EOS cryptocurrency. When the network was launched in early 2018, everyone thought it could grow to dominate a larger part of the market. As the enthusiasm was really high, the network made more than $4 billion in token sales alone. However, the promotions and funds were soon diverted from the network and spent on other projects that helped Block.one grow. EOS.IO did not benefit from any funds or new projects.
After four years of sluggish but gradual growth, EOS is gaining the grounds it duly deserved. The coin posted a phenomenal 3.5% growth in just 24 hours, and future estimates by most analysts are optimistic with 1000% growth for five years. As the rebuilding phase kicks in, click here to see how it might impact the price of EOS in the years to come.
The EOS Network Foundation or ENF is a new committee that owes its primary allegiance to the network and, as an extension, its community. The ENF committee was formed only seven months ago and mainly includes community members who participated in the token distribution four years ago. After being snubbed by the parent company, Block.one, the EOS community will now take action against it in court while also concentrating on improving the network.
Block.one is accused of unethically utilizing the profits of EOS for its own endeavors. Also, the purchase of Voice.com by Block.one was reported to help grow the EOS network, but the company made no efforts to realize that end of the deal. The company has been meticulous in its claims throughout the years which have no legally acceptable statements to substantiate the promises. This, along with Block.one’s recent victory against the SEC, is expected to give the company a higher edge in court if ENF decides to move on with the case.
However, this would raise some fundamental questions regarding the ethical use of the profits from decentralised projects like cryptocurrencies. If ENF emerges victorious, it will be a historical moment for the community and the thousands of people who put their hard-earned money into the project. Either way, the publicity, and ethical stance could give EOS a necessary push in the market.