EOS (EOS) is probably one of the best performing cryptos this week. Its price is surging and is up over 20% in the last 24 hours. So what’s driving this bull-run? The biggest factor driving EOS at the moment is the upcoming airdrop that will take place on the 15th of April. In this airdrop, anyone with an Ethereum account holding 100 EOS or more, will be credited with an equal amount of EosDAC tokens. It is this race to buy at least 100 EOS that is pushing up this coin’s price at the moment. The current positive momentum in the entire crypto market is also playing a role in pushing up EOS. But the upcoming airdrops is the primary driver of this momentum. You can easily tell this by the bids on EOS relative to other cryptos. EOS is clearly tipping the scales on the number of buy orders!
But demand that is driven by anticipation of an airdrop poses a threat to this crypto in the short-term. That’s because a good chunk of the people jumping in now will offload their EOS holdings after getting their free coins. Such a selloff could easily see the price of EOS collapse significantly in the short-term.
There is a long history of massive price drops after an airdrop. Investors tend to dump, and move on to other coins that have some interesting news coming up. It’s all about the chase for new and exciting opportunities in the market. It’s the same thing that happens after hard forks. Case in point was the recent ZClassic hard fork where investors were getting free bitcoin privates, for every ZClassic held. ZClassic surged in price before the fork, then collapsed shortly after. It dropped hard from over $100 to lows of under $10. The drop was not correlated to the recent drop in the entire market, given that it dropped hard, and fast, while the rest of the market dropped gradually.
That’s why you should be careful jumping in to buy EOS at the moment. If investors dump this crypto after the airdrop, you might end up losing more than the potential gains you will have made from the free coins. It is not impossible to see this crypto dropping to under $4 in the short-term.
However, that’s not to say that EOS is not a worthy investment. As a matter of fact, it is one of the best cryptos you can invest in at the moment, for exemplary long-term returns. EOS is blockchain 3.0 and is guaranteed to change how you interact with blockchain technology for good.
Besides, the crypto market seems to be on a rebound. Bitcoin is already trading above the $7500 mark and the rest of the market is in the green. As such, any price drop after the airdrops is likely to be quickly bought up. Actually, savvy investors are probably waiting on the sidelines, waiting to get some EOS on the cheap after the airdrop, before it jumps back, thanks to market momentum and strong fundamentals.