Why the market took a break today while the cryptocurrency EOS jumped 19%

EOS (EOS 14.59%) is one cryptocurrency that is soaring higher on a day when the market is generally down. EOS has increased 19% over the last 24 hours as of 12:30 p.m. ET.

The action comes in response to an intriguing court decision this week in which a judge from the Southern District of New York invalidated a settlement between investors and Block.one, the business that originally created the EOS network. This $27.5 million settlement, proposed by Block.one and accepted in June of this year, resulted from a disagreement with investors over whether an ICO from 2018 qualified as an unregistered security offering.

Regulators and investors have been closely monitoring other cryptocurrency projects due to possible unregistered securities offers, but this settlement was one of the largest the community had ever seen. It’s also important to remember that Block.one previously reached a $24 million settlement over the identical claims with the US Securities and Exchange Commission.

Investors are clearly paying close attention to what this decision could signify for numerous projects battling with legal challenges, even though the business attempted to settle these disputes so that it could concentrate on advancing its blockchain initiatives. Investors may be sensing that the adverse effect from this obstacle may have passed because EOS is soaring after this announcement.

Nevertheless, EOS is not the only token that has come under fire for allegedly making unregistered securities offers. XRP and other projects are battling similar issues. However, Block.one’s very sizable $4 billion raise in 2018, which was at the time the biggest ever, increased the likelihood of a settlement. It is still unclear whether other projects will be able to settle given the low liquidity.

Now what
It’s intriguing that the reason this settlement was rejected was because the investor representative didn’t “adequately represent the interests of all investors.” It will be fascinating to follow this development and see how this ruling affects on-going litigation with other projects. Investors are undoubtedly paying careful attention to these instances, and one token that may benefit from future favourable decisions on other troubled cryptocurrency projects is EOS.

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