Chinese Cryptocurrency Exchange FCoin Blamed for Ethereum’s Network Congestion

in ethereum •  6 years ago  (edited)

eth18.jpg__740x380_q85_crop_subsampling-2.jpgFCoin, a Chinese cryptocurrency exchange that’s been embroiled in controversy after implementing a new revenue model, has now been blamed for clogging the Ethereum network through a voting system that “incentivizes Sybil attacks.”
eth18.jpg__740x380_q85_crop_subsampling-2.jpg

According to MyCrypto , a service founded by the creator of MyEtherWallet, a cryptocurrency exchange it chose not to name implemented a voting system that sees users vote for tokens to be listed on the platform through deposits, meaning one deposit equals one vote.

As a result, various tokens and the communities behind them have been filling the Ethereum network with small transactions to get their tokens listed on the cryptocurrency exchange, clogging the network.

The move forced gas prices up, to the point the average transaction on Ethereum’s network had $5.5 worth of fees attached to it, before these began to subside. Transaction fees got so high that crypto exchange Binance had to temporarily increase gas prices on withdrawals to 180 Gwei.!

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