EOS Surges 9.39% After $3M Investment From Trump-Backed Firm

On Friday, May 16, the cryptocurrency EOS experienced a significant surge, rising by 9.39% within a 24-hour period. This surge was triggered by an investment from World Liberty Financial, a firm backed by former U.S. President Donald Trump. The investment amounted to approximately $3 million, which was used to purchase 3.636 million EOS tokens. The average purchase price was $0.824 per token.

The investment had a notable impact on the value of EOS. On Thursday morning, the token was trading at $0.77, and by midnight, it had risen to $0.79. By Friday morning, the token reached a high of $0.86. Despite a slight correction by press time on May 16, EOS was still trading at $0.85, reflecting the overall positive sentiment driven by the investment.

The investment by World Liberty Financial came at a time when the broader cryptocurrency market was consolidating toward a total valuation of $3.27 trillion, following a shallow correction after hitting a total valuation of $3.34 trillion. This investment not only improved sentiment toward EOS but also enabled it to break through its previous resistance levels in the $0.80 to $0.84 range, moving toward its next important resistance level near $0.90.

However, despite the positive impact of the investment, investors should remain cautious. The rally in EOS was primarily driven by the World Liberty Financial purchase, and without a broader market uptrend, the gains could quickly dissipate. The token failed to reach its May 10 high of $0.98, indicating that the market sentiment may not be fully supportive of a sustained rally.

Should EOS remain above its previous resistance level of approximately $0.84 and turn this zone into support, the odds of a continued rally toward $1 would increase. This would be a positive sign for investors, indicating that the token has the potential for further growth.

The timing of the World Liberty Financial investment is also noteworthy, as EOS is in the process of rebranding into a Web3 Banking network called Vaulta. The token swap from EOS to Vaulta's token, $A, began on May 14 and will be supported by Crypto.com. This rebranding is part of a broader effort to establish Vaulta as a foundation for Web3 banking, with no changes to tokenomics and no fees associated with the swap.