Fake Tokens Clogging Up ETH’s Network May Be Linked to EOS0.72

The latest crypto investigation is adding more fire to allegations of corporate network manipulation, hinting at connections between hikes in ETH network gas prices and EOS-funded bot accounts. 

In short, EOS is suspected of crowding the network with these bot accounts to hike prices. EOS has been given this side-eye since the crypto-community began noticing its capital weight. The EOS website itself boasts that it is “committed to investing over $1B into funds focused on the growth of the EOS ecosystem.” Before you cue the Bogdanoff/Bogged memes, let's see the facts. 

Apparently this contract uses about 40% of the Ethereum network, with the token contract listed as iFishYunYu (iFish), a token built on an ERC20 standard that pretty much does nothing. 

Yet somehow several accounts (i.e. bots) have been transferring to this token, at one point, approximately 50 ETH of gas an hour. But this is only the beginning.

The creator of iFishYunYu minted nearly 5 Billion iFish tokens 21 days ago to this account: 0x45f64a7148d1cfeded427dd4380b458877e7ce56.

These tokens were then split among 10 or more accounts that each then split it up across 500-600 accounts

The allegation is that this one creator is running a scheme where bots transfer the token into accounts, bouncing off towards other accounts, until the gas prices increase due to volume. So… who would even think to do this?

Allegedly, these accounts have been funded by EOS. For example, take this alleged bot account that received large sums of eos and proceeds to sell them immediately for ETH. Several contracts have been found to be doing this, with much of the anger being directed towards Block.One. 

Here goes the quote:

Yet, we’ve heard conflciting stories. Some have even suggested that this allegation completely denies the market selling of EOS for ETH (fair point) and is a simple economic coincidence (doubt it).

Others say it’s a smear attack on EOS’s capacity for transactions compared to ETH, with a lone wolf conducting a transaction fee attack on a slower platform. So is it conspiracy or coincidence? You decide. 

Credit for this investigation goes to the Reddit post from the developers of P3D and Fomo3D, the two highest volume decentralized games on ETH right now who were hit hard by this ETH gas tomfoolery. 


Add comment

Please Sign in to be able to leave comments.