EOS dumped as Block Producer attempts to bribe voters

EOS is on a death spiral, losing nearly 6% in recent 24 hours. The 6th largest coin by market capitalization is moving rapidly towards critical $2.00 amid global bearish sentiments and fundamental internal issues.

The coin is undermined by sings of network centralization and rumors of possible manipulations. The news that EOS founder and Block One's CTO Dan Larimer is launching a new cryptocurrency project triggered speculations that he is leaving EOS and increase the pressure. Mr. Larimer reassured the community that was not abandoning EOS, but the harm was already done. 

Moreover, this week Starteos, one of EOS Block Producers (BP) angered the community again, by offering token holders remuneration for their votes. 

The company said that users would get stable EOS revenue after delegating   Starteos.io as a proxy. 

“The ‘winter’ of cryptocurrencies has come. How much faith do you left to have? Now, Starteos is still gonna stay with YOU, our most important and best friends! And we gonna share the proceeds with you and make [it] through the difficulties together,” they wrote in a blog post, providing instructions on how to claim the benefits.

EOS/USD is now changing hands at $2.22, off the Asian low touched at $2.11. The recovery is capped by SMA50 (1-hour) currently at $2.43. Once it is cleared, the upside may be extended towards $2.60 (SMA100) and $2.8 (SMA200) with the ultimate short-term resistance at $3.0.

On the downside, a sustainable move below $2.00 will expose 1.9, which is the lowest level since December 2017.

EOS/USD, 1-hour chart