Last night a developer from Team JUST, a group that makes Ethereum dApps, posted a discord article implicating EOS in the recent rise of Ethereum gas prices to almost 100 gwei. (A gwei is one billionth of an ether).
As developers of popular Ethereum games Fomo3D and P3D, increased gas prices are of particular concern to Team JUST.
Ethereum gas price manipulation
In the discord article that was reposted to Reddit, author Justo details what he believes is a coordinated attack by EOS agents on the Ethereum network to discredit Ethereum and attract developers over to EOS. Admittedly, the evidence is quite compelling – if it checks out. Since the post, an EOS advocate responded on Reddit claiming to have done a further investigation and found the claims to be groundless. In his post, he says he can’t find any hashes that lead to the EOS crowdsale account that Justo claims are funding the attack and raising Ethereum gas prices.
However, whether or not it is EOS, somebody certainly appears to be spending a lot of time and money on airdrops that serve no purpose.
If you look on etherscan.io, you will see an ethereum contract exists for an entirely featureless ERC20 token called iFishYunYu, which yesterday was hogging 40% of the Ethereum network. Despite it serving no purpose, massive amounts of its worthless tokens are being distributed around by hundreds of random accounts using the FCoin exchange. Just under two weeks ago the account created five billion tokens which were split amongst 6000 accounts, which Justo claims are the accounts spamming the ETH network.
The use of FCoin is also questionable considering it isn’t the most reputable of exchanges. It runs an annoying scheme rewarding users for spamming the network and has been accused of operating as a Ponzi scheme. Justo believes one person is responsible for running these bots accounts and was the same person doing this in a previous FCoin competition used to wash tokens.
The cost of such an attack
What is most damning about all this is that it would cost somewhere around 50 ETH in gas per hour to instigate such an operation and for seemingly no purpose, other than to cripple the network by pushing up Ethereum gas prices. That’s almost USD 22,000, per hour. Whoever is doing it can’t just be a random hacker – they would have a lot of funds to waste. EOS certainly would qualify, considering that during its mainnet migration it was able to sell off millions worth of ETH at a loss on Bitfinex, causing the price to drop to USD400.
Of course, the Ethereum network is decentralized and free for all to use in whatever way they please but if the claims are true, it’s certainly very unethical. It also brings up important questions about how the network could be abused in the future by whales or traditional financial institutions with limitless capital.
In response to the claims, Dan Larimer had this to say:
“I can assure you block one wouldn’t be so stupid to spend our resources attacking eth when all it takes is crypto kitties. There are far smarter and more cost-effective ways at (sic) bringing eth down if that were the goal.”
Mark Hartley is an IT specialist, freelance writer, keen traveler, and blockchain enthusiast. He has worked on the trading floors of the world’s biggest interdealer broker in London and helped integrate crypto-services into IT trading systems. When he’s not searching for the world’s most beautiful beach, he’s nose deep in any crypto and blockchain related news.