Standard Kepler

EOS Skyrockets Following ERC-20 Token Bug

EOS Skyrockets Following ERC-20 Token Bug
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04/23 – 04/29

WEEKLY RECAP

  • Total market cap. reached $434.79bn (a 12.6% increase), where 7 day transaction volume surged 43.7% for top 100 crypto.
  • Following the batchOverflow bug incident for ERC-20 tokens, EOS was the top gainer among major altcoins with price (7D) increasing 82.2% and transaction volume spiking 2.24x.


WEEK AHEAD

  • Global Money Transfer Summit in Dubai
  • Crypto Invest Summit in Los Angeles


THOUGHTS OF THE WEEK

The incident of the batchOverflow bug in ERC-20 tokens caught everyone’s attention this week, with the bug exploiting ERC-20 tokens’ vulnerability to price manipulation from attackers. Subsequently, ERC-20 token deposits and withdrawals were temporarily halted by major crypto exchanges such as OKEX, HitBTC and Poloniex.

We believe that the impact of the ERC-20 token bug is limited, as supported by the market’s behavior. As the batchOverflow bug became widely recognized in the crypto community on 24 April, EOS (the main rival of ETH) became the top gainer as its price (24h) surged by 32% with spiking 4.87x trading volume (24h). However, as the crypto community quickly realized that the bug was a classic integer outflow case which did not affect Ethereum’s codebase, investors gradually regained confidence on ETH with its price (24h) rebounding 7.7% on 26 April.

We are confident that bugs such as the aforementioned batchOverflow bug can be mitigated by adopting SafeMath library and performing detailed smart contract audits, and we remain optimistic as to the future development of Ethereum.

 

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