Rajarshi Mitra
Independent Analyst
- Coinbase claimed that it faced difficulties in processing clients' transactions due to the congestion in the network.
- The incident has caused the price of the CPU time on the network to increase by 100,000% in four hours.
According to a Coinbase report, the EOS blockchain has been congested by the EIDOS token airdrop. In a blog post, Coinbase said that it faced problems in processing its clients' transactions. This was due to the congestion caused by the EIDOS airdrop. The exchange has solved the issue by increasing the amount of staked CPU and securing a required portion of CPU time remaining on the network to process the transactions.
This incident has also caused the price of CPU time on the network to surge by more than 100,000% in about four hours. The CPU time price reached approximately 7.69 EOS per millisecond. On October 31, a token named EIDOS was released on EOS, according to Coinbase. Its airdrop involves sending transactions on the network from the token's smart contract.
Exchanges listed EIDOS/USDT pairs to enable users that received the tokens to sell them for the stablecoin. To sell the tokens, people have leased the network's CPU time to increase the number of transfers processed by the blockchain. This has caused the EOS network to be congested and restrict the number of transactions that users can broadcast to their pro-rata share of total staked CPU resources on the blockchain. The token-related activity is responsible for a significant portion of total activity on the network.
The blog post said:
Currently, we’re observing around 95% of all EOS transfer actions are related to the EIDOS contract.
Users who hold a relatively less amount of staked CPU resources are presently not able to send transactions. The exchange has noted that the situation is only temporary. The exchange is expecting the network to return to its usual state as soon as it is no longer profitable to collect the tokens.
Coinbase added:
It is important to note that the EOS protocol is behaving as expected, but congestion mode prevents users from having transactions processed that exceed their CPU stake.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.