New PeckShield Report Reveals Important EOS dApps Data, Including Massive Theft to Hackers
EOS holds the spot at the eighth-largest coin by market cap in the entire world, but even it has suffered from the downward trend of the market over the last week.
Down by over 50%, EOS’s drop coincides with the phantom accounts and hacking issues that keep showing up on the blockchain. This reflects the name given to it by some investors in the industry – the Ethereum Killer.
Launching in the summer of 2018, EOS was meant to be a public blockchain that allowed developers to create their decentralized applications. It’s been a beneficial and attractive place for many blockchain startups to launch their dApps, and the network activity has seemed to grow, even as the price has fallen.
Over the last five months, there have been over 200 dApps launched on the EOS blockchain, eliciting the attention of upwards of 500,000 users. On some days, the daily trading volume was enough to reach 100 million yuan, backed on the data collected by Blockchain Truth, a blockchain media platform in China. So far, gambling dApps have surpassed the creation of all others.
The gambling hype has come down, but the rest of the dApps still managed to have about 7.05 million in trading volume on August 25th, beating down Ethereum by about three times over. Even though the MainNet hasn’t even been live for a whole year, their daily activity passes Ethereum by nine times, and peak transaction times are ten times of Ethereum.
Security firm PeckShield recently evaluated EOS, discovering that 24% of the user accounts (120,000) are controlled by specific groups. Also, out of the 500,000 accounts, there are 200,000 accounts that are mostly dormant, as of November 26th, with little to no activity. Based on those details, only 37% of the user accounts are actually used by active users.
In an interview recently, Shi Huaguo, the senior security expert for PeckShield, said,
“DApps on EOS started to explode since the end of September, and the number grew rapidly in October. But with EOS DApp getting hotter , the group-controlled accounts started to emerge since October 4th.” The interview was hosted by Blockchain Truth.
Even though it is hard to narrow down the controllers in the accounts, Shi believes that they are “click farms” and bounty hunters. Luckily, the phantom accounts haven’t had an impact on how dApps have grown or how trading volume has increased. In just the time since October, EOS’s daily users exceed that of Ethereum.
As stated above, hacking attacks have been one of the most common issues with EOS. PeckShield’s data shows 27 security incidents involving dApps since November 26th. As a result, there have been about 400,000 EOS lost, which is approximately 8 million yuan.
Guo Yonggang, another security expert, notes that the there aren’t bugs on the blockchain causing these issues, but a random number of vulnerabilities. If his assumptions are accurate, he further believes that the vulnerabilities are ultimately discovered and used by multiple cyber attack teams, and these attacks many become more frequent soon. Ultimately, the attacks are becoming more effective against EOS, which is something to be worried about.
According to CoinMarketCap at press time, EOS is trading at $1.99 after seeing an increase of 9.19%. Ethereum, on the other hand, is up by only 1.80%, bringing it up to $94.26.