EOS [EOS] accused of manipulating Ethereum [ETH]’s gas price

On 15th July, the team Just, a decentralized application platform, accused EOS [EOS] of manipulating the gas prices of the Ethereum [ETH] network on Reddit. The team claimed that the ETH gas prices have a connection to the funded bot accounts of EOS and called it a ‘corporate network attack’.

Ethereum Virtual Machine [EVM] uses gas which is an internal pricing system for computational power on the Ethereum Blockchain. Gas is required to run a transaction or a contract. The post also claimed that 40% of the Ethereum’s network was used by a contract named IFishYunYu. This led to the gas price to skyrocket to almost 100 gwei.

According to the post, almost 50 ETH of gas was being used for an hour for nearly 24 hours and all the tokens were being sent to the FCoin exchange. The owner of the contract recently minted 5 billion Ifish and this was distributed to ten main accounts which later on was split up to more than 500 accounts.

Transaction details of IFishYunYu on 14th July 2018 || Source: Etherscan

Transaction details of IFishYunYu on 14th July 2018 || Source: Etherscan

In addition, the team claims that one of the accounts from which ETH was received from belonged to the EOS crowdfunding accounts. The post has not mentioned the IFish token address which received the ETH from EOS. Moreover, the EOS account address mentioned in the post shows that the last transaction was 122 days ago.

EOS account accused of funding IFish tokens for spamming the Ethereum blockchain || Source: Etherscan

EOS account accused of funding IFish tokens for spamming the Ethereum blockchain || Source: Etherscan

Josshem, a Redditor said that the high transaction fee-paying user will push all the low paying users out of the market as the network capacity is currently limited. The Reddit user further adds that this is not an attack, but someone is playing with the market dynamics. Nonetheless, if the network gains more capacity, it would lead to a lot more users using the platform for ‘silly things’. This would lead fees to skyrocket and push the users with the smallest wallets from layer 1.

Daniel Larimer, the CTO of EOS on a Telegram channel said:

“I can assure you block one wouldn’t be stupid to spend our resources attacking ETH when all it takes is CryptoKitties. There are far smarter and more cost effective ways at bringing ETH down if that were our goal.”

Irrespective of the fact that there is no direct connection to EOS, the majority of the community believes that EOS is the reason for the gas price hike. They consider that the main reason for such an attack is because they consider Ethereum as their biggest competitors in the market.

KPenney, a Redditor says:

“I was EOS, and I had spare money and knew that my competitor a) has an actual better and working product and b) the longer we [eos] allowed them to outmatch us it will become harder and a further stretch of ever competing with them, then sure, sabotage a network that you know you can and will benefit your project later- hell you can probably make claims centralized blockchains work better because they could ‘better maintain and ensure that this behaviour doesn’t happen on their platform’- even though they’re the ones misbehaving.”

He further adds:

“Its sort of a bit of work for no real reason, less it’s not an individual but a group of individuals using 1 account or w/e. I’m certain there’s something I’m not seeing here, but my gut feeling is that this is sabotage from the EOS team.”

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