A less-known Chinese cryptocurrency exchange is accused of blocking the Ethereum network and growth of gas charges.
FCoin is suspected for promoting Sybil attacks that have led to the imbalance of the Ethereum network and increased trading fees. The incident attracted the attention of companies and the community.
*A Sybil attack is “an attack wherein a reputation system is subverted by forging identities in peer-to-peer networks.”
During the past few days, users have revolted by the high fees they had to pay for ETH transactions. Thus, those who have been in the unavailability of paying charges have given up on some transactions. This change has been correlated with the FCoin platform, which has released a “cumulative deposit number ranking voting protocol” to add new cryptocurrencies to the trading platform.
For a cryptocurrency to be listed on FCoin exchange, the votes were recorded by sending numerous desired coins. Once the voting period ended, the winning cryptocurrency was the one that recorded the largest deposit. It is assumed that due to multiple votes, a suitable environment for the so-called Sybil attack has been created.
There have been registered numerous Ethereum-based virtual currencies in the fight to be listed on the FCoin platform using the Sybil attacks, the aspect which has led to the network congestion and increasing transaction fees. The Ethereum community was revolted by what happened, which besides the increased taxes had to bear a long time to process transactions.
According to analysts, the voting system was intentionally created to trigger a wave of advertising. Even so, the cryptocurrency exchange hopes that will be promoted on the basis of users’ disappointments.
MyCrypto.com tweeted this:
“As we’ve been looking into the recent network congestion / high gas prices, one of the more interesting things to come to light involves a random exchange (whom we will not name as this is likely part of their “PR strategy”)…In summation: F**k exchanges, projects, or tokens that incentivize bad behavior, like Sybil attacks. Do not fall for their s**t. Instead, reward those who are building remarkable tools & communities responsibly.”