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Bitpico cyberattack

EOS, the popular decentralization-oriented blockchain may be deliberately attacking the Ethereum network through various dishonest tactics. This is what Justo, a dapp developer from the team behind PoWH3D and Fomo3D, concluded after some serious research and later discussed in an interview covered by TrustNodes.

Justo Shared his ideas on a Reddit Post a few hours ago generating conflicting opinions in the community

According to Justo, his team was able to see that EOS was behind a series of Airdrops of tokens with little or no value at all. This strategy caused the price of GAS needed to process transactions to rise considerably, thus congesting the Ethereum network:

“Every day up until the launch of the EOS platform, which was June 6th, gas prices increased due to “Airdrop” tokens.
Thousands of random tokens, with no website, or bootstrapped template websites made in hours. Wasting hundreds of ethereum daily, hundreds of thousands of dollars to drop tokens.
This happened up until the launch of EOS, on the 6th, then immediately stopped. In one day, gas prices dropped back to normal.”

For Justo, this type of strategy is used whenever an error or a problem occurs in the EOS network. This could promote the migration of users from Ethereum to EOS.

Follow The Tracks

Justo’s conviction that the attacks came from the EOS team is based on how such operations have been so wasily funded:

“EOS has been attacking the eth network on/off every time something they do doesn’t run properly … Follow the wallets … If you don’t think EOS is doing it, then who has 2 million dollars a day to attack ethereum and also owns eos tokens?”

Ethereum Blockchain InnovationHe also explains that he started his investigations following the transactions of several tokens with mysterious airdrops. The example he gives in his post is the ERC20 token under the name “IFishYunYu”  which offers no functionality. After digging in deeper, the massive transfers of this token seem intriguing. According to what can be observed in the block explorers, “almost 50 ETH of gas an hour have been steadily used for nearly 24 hours now.”

The creator of the IFishYunYu token minted about 5 billion tokens that were sent to a number of destinations that are “Spamming” the ETH network.

An “Old” Strategy

To Justo, this M.O. is nothing new. He comments on how it has been previously applied -and perhaps even by the same person or group:

“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.”

He ends explaining how after tying up the dots, all the tokens that are supposedly spamming the ETH network are linked to EOS:

“Try following a transaction, you’ll come right back to the big-daddy account.
Most importantly on why is this being done? Let’s see what one of the accounts funding all this eth might be doing https://etherscan.io/token/0x86fa049857e0209aa7d9e616f7eb3b3b78ecfdb0?a=0x7a717e226a8b37b912d0effbb0aab24ab690dbd

Gee, that sure is a lot of crowdfunded EOS, hundreds of thousands to be exact. From an account that seems to receive large sums of eos and immediately market sell them for thousands of ETH, which is then distributed out to contracts like this. Contracts that have been pulling this kind of transaction attack consistently across the ETH network.”

So far no official comments have been made by any of the Teams involved in this issue.

Full post is available here:

Manipulated ETH network gas prices look connected to EOS funded bot accounts in possible indication of corporate network attack. from ethereum

The post EOS Accused of Attacking the Ethereum Blockchain appeared first on Ethereum World News.

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