EOS bid price directly manipulated through additional purchases – research
On August 31, Professor John Griffin of the Austin McCombs School of Business and financial analysis firm Integra FEC published a document titled “Were ETH and EOS Redesigned During the EOS Initial Offering?” In this paper, they argue that clean trading played a key role in the discovery of EOS prices.
As reported by Bloomberg, the document indicates that EOS was allegedly hunted on the cryptocurrency exchanges Binance and Bitfinex in order to artificially inflate prices.
Griffin wrote that the artificial demand from suspicious accounts created the illusion of demand for the token and boosted the prices:
“First, the EOS offer price was directly manipulated through additional purchases and overstating the market value of the token. Second, it created a false impression of the value of the token, which prompted others to want to buy the ICO token.”
The study identified 21 accounts that were recycling EOS tokens during the ICO. At that time, “suspicious funds” were identified in the amount of 1.2 million ETH (about $815 million at that time). Only ETH was used to buy EOS during the one-year ICO.
Researchers are confident that Ethereum accounts were specifically created to purchase EOS multiple times over time. However, the names of the owners of these accounts have not been named.
Griffin noted that these suspicious accounts accounted for nearly a quarter of EOS purchases by the end of the crowd sale.
As Bloomberg added, Block.one representative commented on the article. They referred to a document created by the law firm Clifford Chance LLP, which argued that there was no evidence that Block.one bought tokens on the primary market.