Bancor's ICO collapsed Ethereum's Network

in ethereum •  7 years ago 

Yesterday the biggest ICO of all times was carried out. BANCOR, a platform that creates smart tokens on Ethereum's Blockchain , managed to raise over 150 million dollars in as little as 3 hours.

I waited patiently by my computer for the ICO to start and send the funds to Bancor's crowdfund address. However, the volume of transactions was so absurdly high that I had to make 5 attempts before I could finally send my transaction, and I did that by setting the gas limit to 250.000. As you can see on the picture below others were not so lucky:

bancor_pending.png

At first the transaction bottleneck was categorized as “massive malicious attacks on the network” by the Bancor Team, but it was later discovered that the cause of the DDoS was the huge amount of TXs made to Bancor's smart contract. The result was an extension of the ICO and of the initial “hidden cap”.

Lessons to be learnt and EOS approach

ICOs are getting crazy, a lot of people are missing out due to bot buying and just natural high demand of new tokens.

To avoid the clusterfuck that happened yesterday, EOS and @dantheman have come up with a new ICO system that consists of 1 day windows so that everybody who wants to buy will get a chance.

Nevertheless, we need to wonder if Ethereum is appropriately equipped to handle these major ICO events that bring an immense amount of traffic to the network in a short period of time.

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Good info chitty. The eth network is clearly not equipped to do a remotely fair ICO. Eth doesn't deserve the value it has at all. I hope they come up with a better way.

Imagine if this was done via BTC. I can't even imagine it.

ETH will be an outsider, if Vitalik doesn't solve the Problem

@chitty @dantheman there would be a way also to create an interest for ICO so it is not lunched blindly but actually those who were interested x time before have advantage to buy. It would level out the initial crazy push and could even out the buy.
There can be also a solution like boarding an AirPlane. Everyone gets in but the system is timed, so it does not fail.

Just an idea

Well, much more projects to come.
Any gap will be filled over time.
Technology is on its way to perfection in our space, should i say.
Steemup!

Wow, so you can slow this to a halt with too many purchases at once. I missed this what exchange will it be on?

I do not believe they plan on adding it to any exchanges yet.

Yeah this certainly is worth $300, it's not like this news can be found all over the internet already.

My thoughts on etc and icos
https://steemit.com/etc/@ender/eth-etc-ant

Not only is Ethereum flawed and hard to use, it's also hard to understand and get going with.

I sure hope EOS will be better.

If there's anything compatible to the dot com bubble it's ico's.

  ·  7 years ago (edited)

tag

With the no cap thing on EOS, greedy people will be afraid that the day's total contributions are too big that the price will be too high - possibly higher than that of the next day. The EOS dist plan is a brilliant design.

Now think whats going to happen with the EOS ICO!

Something similar happened with the BAT ICO... only big whales were able to buy, and most of the tokens ended up in just a handful of wallets. Pretty unfair to the small investor, since the whales pay ridiculous amounts of gas making it impossible for the normal individual to partake.

I think it's possible for ICOs to only accept transactions with certain gas price, which could stop whales from paying ridiculous amounts of gas to propagate their transactions.
But that depends on ICO devs and it also might cause other problems.

Ethereum and bitcoin when they will stop of gowing Up!

gowing? growing right?

Don't mind him @cybercodetwinds. We all know what he meant. Yes, everyone is wondering when this madness is going to stop so that they don't have time to check their spelling. Lol.

Okay. keep steeming on \m/

EOS idea for their ICO is pure genius.

true, now ICO based ethereum is centralized, It need to be changed like EOS
good post! thank you

I honestly think ICO's like this work to benefit the system through pushing it to it's limits. Think about it, wouldn't you rather the chain slow down during an ICO or during a later date whilst even more people are reliant on the blockchain.

It's better to happen now whilst the technology is earlier so improvements can be found rather than working on it later. I guess the need for scaling is a good sign of a promising startup.

I wasn't able to get in and missed out. So bummed right now...

true

Hey! thanks for this. I wondered what the hell was going on yesterday.

It was pretty crazy watching the coinmarketcap charts go crazy during the ICO.

All that red has turned mainly back to green now anyway.

Thanks for the summary. ICO is the epicenter of blockchain start-up excitement given the financial stakes involved. I read Bancor's whitepaper (several times) to understand the underlying economics of their pricing ratios to foster liquidity. Appears they put a lot of thought into liquidity issues as a barrier to expanding the ecosystem, but not the simplest proposal to get your head around. There's always a risk it won't execute as planned. E.g. the temporary collapse with their ICO underscores the massive operational risk associated with this type of crowdfunding.

Good article. Same thoughts here. I really believe in the ico model, why do wealthy people are only allowed to invest in early stage startups. The issue is that the ico scene currently doesn't have any due diligence, besides that they have 0 obligations to their token holders, this is the issue we have to fix. I really advice people to take a look at: https://www.coincheckup.com I don't know any other site that gives such good inisghts in the team, the product, advisors, community, the business and the business model, etc. Go to: https://www.coincheckup.com/coins/Bancor#analysis To watch Bancor Report