Why You Shouldn't Invest in EOS ICO

If you are thinking of investing in EOS. You have one of two options:

1. Purchase EOS shares on exchanges such as Kraken and Brittrex
2. Or participate in the ongoing ICO on the official website, www.EOS.IO

My issue with the ICO is that you are actually paying a lot more comparing to price for EOS on an exchange. The current ICO format works this way that every day 2 million new shares will be available to distribute on the market. The distribution of shares depends on the total amount of ETH in the pool collects during that 24 hour period.

See https://eos.io/instructions for more detail.

For example, if there are 20,000 ETH in the pool for the current 24 hr ICO. At the end of the ICO, for each ETH, the participant will get 100 shares; 2 million shares of EOS divides by 20,000 of ETH. So depending on the current market price per EOS, you could actually turn a quick profit by calculating the difference using the below formula:

Profit/Loss = (Market Price of EOS x Today's ICO Token Distribution per ETH) - Market Price of ETH

However, due to the recent hype, participants are actually getting a far worse deal from EOS ICO. For the past two 24 hr periods, one ETH only gets you less than 60 shares of EOS. 60 shares at the current market price of $3 per EOS, the market value is only $180 before fees. Therefore, it's a really bad deal.

$3 x 60 shares of EOS - price of ETH $270 (as of 07/04/17)
= -$90

As an investor, you will actually be losing $90 on your one ETH investment. On the other hand, if you see a lower pool amount, it could be a great opportunity to invest.