EOS Network Foundation’s founder stated the other option is a hard fork to exclude EOS crypto tokens held by B1
EOS Network participants should consider taking legal action against major investor Block.one (B1) for “broken promises” over its financing in the ecological system, reports by the founder of the EOS Network Foundation.
Yves La Rose stated legal action is one of two possible ways to hold B1 to account for not investing the $1 Billion it promised during the network’s initial coin offering (ICO) in January 2018. The other option is a hard fork to exclude EOS crypto tokens held by B1 to fully disassociate itself from its previous backer.
” Because of B1’s broken promises, the EOS Network is under-capitalized and the development of the EOS Network has been significantly stunted,” La Rose wrote in a letter dated May 20.
EOS crypto token holders purchased their crypto tokens “relying on representations of ongoing financing in the EOS ecosystem,” which never came leading one to conclusion that B1 never intended to make the promised investments, reports by La Rose.
“If enough crypto token holders are interested in making a legal claim, a class action lawsuit is a possibility. The EOS Network Foundation is prepared to help in bringing EOS crypto token holders together for the purpose of advancing a claim against B1,” he wrote.
The EOS crypto token is as of now currently worth $0.85 having slumped by 32 percent since April 14, it dropped by a further 2.5 percent over the past-24 hours, reports by TradingView data.
EOS raised $4.1 Billion in its ICO in 2018 but dropped short of expectations, with community members blaming B1 for shifting its interests and financial resources to cryptocurrency exchange Bullish, which it unveiled in May 2021. The Foundation 1st muted legal action in February 2022 to seek $4.1 Billion in damages.
B1 did not instantly respond to CoinDesk’s request for comment.