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Did EOS Manipulate the Ethereum Network? EOS CTO Denies the Claims

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Golden EOS.IO and mound of money. Digital cryptocurrency concept. Source: shutterstock.com

A Reddit post claims that the recent network price manipulation on the Ethereum Network could be connected to bots funded by EOS, calling it a possible case of a corporate network attack. The post also suggests that an ERC20 token could be using bots to boost volumes artificially and spam the Ethereum blockchain network. Recent ETH network price manipulations could be connected to EOS funded bot accounts in a corporate network attack. EOS vehemently deny these accusations.

A “Fishy” Coin Takes Over the Ethereum Network

According to the Reddit post by decentralized game maker Team JUST Discord, at least 40% of the Ethereum network is being used by one contract alone. This contract belongs to “IFishYunYu,” a standard ERC20 token that doesn’t have any features.

A number of seemingly unique accounts are boosting volumes of the token, which could amount to as much as 50 ETH in an hour. The activity was noticed for over 24 hours before the time of posting (on Reddit). The tokens were being used for transfers to the Fcoin exchange.

The post also pointed to an Etherscan link which shows he minted 5 billion of Ifish tokens at the beginning of this month. All of these were minted to this account: 0x45f64a7148d1cfeded427dd4380b458877e7ce56. The coins were then further split up into ten accounts. Each of these ten accounts then distributed tokens to 500-600 accounts each. These accounts spam the Ethereum blockchain.

As per the post:

“The mystery “unique” accounts that are spamming the eth network. So yeah, it’s one guy, it’s the creator of the token. He was doing it during the previous Fcoin exchange competition too. He’s running a multi-sided scheme; he even has bots running “wash” accounts.”

Saying that coins are circulated to hundreds of accounts and then “back to the big main account to simulate volume on the token itself. Try following a transaction; you’ll come right back to the big-daddy account.

How Is EOS Involved in This Activity?

The post also hints a connection between EOS and the ETH network scan. It refers to accounts being used to receive thousands of EOS coins, which are being sold for ETH coins. Once done, they are distributed on the Ethereum network via hundreds of accounts, possibly by just one person. They also claim that such attacks have become very consistent on the ETH network.

Dan Larimer, CTO of EOS fought back saying:

“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 of bringing eth down if that were the goal.”

The EOS community on Reddit is asking the ETH community to stop blaming them for the recent bear market in the cryptocurrency segment.

Did EOS Manipulate the Ethereum Network? EOS CTO Denies the Claims was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.