Controversy is always looming around the corner in the cryptocurrency industry. A lot of shady deals are going on, although not all of them will have any lasting effect. In the EOS ecosystem, various proxies have been approached by third parties looking to gain control over their “votes” and to create value. It is a very problematic turn of events, although one that might not cause any problems as of yet.
THE EOS PROXIES ARE POPULAR
It is evident every cryptocurrency network has nodes or members which depict a certain degree of network value. As far as EOS is concerned, that value doesn’t just come from block producers, but also proxies which operate on the network. As is to be expected, a fair few proxies tend to lose traction over time as others move to the forefront.
Despite their “loss” of value, it seems those proxies are still of interest to third parties, primarily originating from the East. These entities aim to obtain the rights of as many proxies as possible and are even willing to “create value for EOS holders’ in doing so. While this makes for a seemingly legitimate business model at first, there is something far more nefarious going on behind the scenes.
PROPAGATING BP VOTES
The main purpose of gaining authority of an EOS proxy is to influence the votes which are given to certain block producers. Although anyone in the world can create their own proxy or become a new block producer as they see fit, obtaining an established party is an easier and quicker way to what is perceived as a guaranteed success.
Multiple conversations have been shared on Twitter regarding the approach by Asian “investors”. They all seem to target EOS proxies which are losing traction. As such, they want them to vote for certain block producers, for which they will receive a financial compensation in return. It can be a somewhat lucrative venture for those willing to throw away any credibility, but everyone else isn’t really interested. As such, there is no reason to expect any immediate repercussions due to this behavior.
A PROBLEM AT THE CORE?
If there is one thing to take away from all this, it is how EOS’s core infrastructure could allow for BP voting manipulation. This was known from the start, although little has been done to prevent it from happening. While any wrongdoings will become apparent fairly quickly, a lot of damage can be done before that happens. As such, one has to question if this approach needs to undergo changes now or in the future.
It would not be the first time BP voting manipulation takes place on EOS either. Last year, numerous parties were accused of doing exactly that. While no official proof was offered at that time, it seems some entities are more than willing to go down the dirty tricks route. One also has to keep in mind collusion would cost a lot of money in the EOS ecosystem, and might not necessarily be worth pursuing. That said, nothing is impossible, and all options remain on the table until further notice.
EOS Price Analysis and Prediction for September 16th 2019 – Can EOS HODL $4 Support?
It’s a great start to a new week for cryptocurrency markets. While there aren’t any big price changes, most markets are in the green today which is a great sign. EOS has finally reached the dreaded $4.0 support level. Let’s take a look at some relevant EOS news and see if anything caused that spike, we will also take a look at the charts and see what they have in store for us.
The biggest news for EOS, and the main reason the price is exhibiting so much bullish momentum is due to the upcoming EOS version upgrade on September 23rd. As discussed in our previous EOS price prediction:
“THE BIGGEST DEAL ABOUT THE NEW EOS UPGRADE IS THAT IT WILL ALLOW DAPPS TO PAY USERS FOR THEIR CPU POWER.”
This new feature will give EOS a leg up on Ethereum and allow developers to create some truly revolutionary dApps. Ethereum is also gearing up for its ETH 2.0 upgrade on November so the two smart contract platforms are definitely going head to head.
In other not so positive news, NullTX reported how a hacker stole 30,000 EOS by exploiting a gambling dApp. The app in question is called EOSPlay and the hacker used the REX platform which allowed him to stake CPU power and in exchange “negate” other users’ transactions. An extremely clever technique that was going to be used to exploit an app by someone sooner or later.
EOS Price Analysis
Relative Strength Index: The RSI is currently at a healthy 43 points. It’s a bit low, but that’s expected given the recent slight price decline.
Bollinger Bands: The price is also leaning towards the low end of the band which most likely means it will stay at the current level for a few more hours at least.
Volume: The volume is surprisingly high at the time of writing. That’s most likely because it’s a start of a new week when market action usually picks up.
Double Top: With the EOS price dropping from a high of $4.15 to a current of $4.09, a double top pattern has formed. This pattern is extremely bearish, but the caveat here is that a double top usually signifies medium to long term trend change. Since we are looking at the 15 minute chart, we are dealing with short term trends. As such, there’s no reason to take the double top too seriously.
EOS Price Prediciton
Because we’re at the start of a new week, and with the EOS and Ethereum upgrades ahead of us, I’m going to predict that EOS will be able to hold the $4.0 support. Even though some news came out about the EOSPlay hack, 30,000 isn’t that significant and won’t have much of an impact on the market. On the other hand, with the new EOS version upgrade coming up in seven days, bullish momentum is in the works for the cryptocurrency.
On another note, it’s important to keep a good eye on Bitcoin’s price movements. As any big swings will have a similar effect on the rest of the crypto markets.
EOS Price Analysis – Bulls are Taking Over the Market
|Key EOS resistance levels:||$4.5, $5, $5.6|
|Key EOS support levels:||$3.7, $3.2, $3|
*Price at the time of writing
EOS Long Term Trend Price Prediction: Bullish
The mid-year bearish correction seems to be over for EOS EOS, 8.69% as the market shows a positive momentum after relying on the $3 key support since early this month. The latest price growth has currently brought the market to $4, making the EOS price to correct 33% gain over the past 7 days and 8.45% gain under 24-hours of trading.
As we can see on the daily chart, the price is attempting to breakthrough from the descending channel pattern, which has been carving since June. Following yesterday bullish engulfing pattern, we can expect a price push to $4.5, $5 and $5.6 on the upside.
On the other hand, we may as well witness a price pull to $3.7, $3.2 and $3 support if the sellers manage to regain control of the market. A drive below the important support at $3 might lead to a serious bearish action in the market.
EOS is looking bullish on the RSI after bolstering at the 30 level since mid-July. The price is now significantly shooting at the 70 level. The Stochastic RSI is revealing a bullish momentum but appears weak at the overbought zone.
EOS Medium Term Trend Price Prediction: Bullish
The past few days of price increase has made EOS to reach $4 and at the same time testing the channel’s upper boundary. The token may drop if the price action keeps respecting the four weeks channel pattern. However, we can expect the $3.7, $3.5 and $3.2 to provide supports for the market.
Currently, the EOS market has slightly broken above the channel’s upper boundary yesterday. If the break becomes significant, we may see a decent rise to $4.3, $4.6 and $4.9 resistance. But now, the market is yet to give a clear sign for a breakout.
As we can see, the RSI is lying on the overbought region, showing a little bullish weakness, although the buyers may regroup back if the RSI 50 can hold. The Stochastic RSI has reached an overbought area after revealing an ongoing buying pressure in the market. EOS may see a little price drop before rising back.
EOS Short Term Trend Price Prediction: Bullish
EOS is caught in a bullish trend on the hourly chart, although a sell is signaled on the technical indicators. If the RSI indicator follows the September 7 bearish divergence signal, the price may still rise a bit to $4.2 and $4.4 resistance before it clearly plays out on the price chart – whereby retracing to the rising trend line (yellow).
However, the Stochastic RSI will continue to oscillate within its limits, although currently in the oversold area. In case of a sudden price drop, the closest support to watch out for is $3.8 level. A drive below the yellow line may cause the price to slump heavily to $3.6, $3.4 and $3.2 on the downside. For now, the bulls are gaining control of the EOS market.
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EOS gambling dApp’s loophole exploited; attacker walks away with 30,000 EOS
The parent blockchain of EOS token, EOSIO became a casualty of an attack, after a gambling dApp was exploited by an attacker, accumulating 30,000 EOS (approximately amounting to 111,000 $) in the process.
The intruder reportedly took advantage of a loophole in the dApp EOSplay, permitting him to win consecutive rolls by filling the blocks with paid transactions.
Twitter user @rektkid, was one of the first to notice the intrusion. He took to the social media platform to explain that the attacker had taken the help of REX, an ESO resource exchange for RAM and CPU outlets, which led to consistent fill-up of blocks with transactions, allowing him to create a continuous win situation on the gambling app. After over 30,000 EOS was transferred to the attacker’s wallet, the blockchain’s network froze.
However, the attack may have effected the network more than it was expected.
Another twitter user Dexaran, provided more insight into the attack and claimed that all his contracts on the EOS mainnet had stopped due to high network congestion. He added that his 20 staked EOS CPU gave him a feeble network signal of 6 ms instead of the 2800 ms in normal state.
He contemplated the intruder’s plan of action and addressed how the attack occurred. An update on the network was released by Dexaran. He said,
“Attack stopped, network is back in a normal mode.
>30K EOS stolen because of the vulnerability of DApp design.
Not $EOS flaw. Just a smart-contract that was hacked. To smart-contract devs: 1. Follow best security practices. 2. Do not rely on on-chain source of entropy in EOS.”