Syscoin [SYS] Confusion Finally Clarified, Complete Analysis Provided
It was recently brought to everyone’s attention that one Syscoin [SYS] was sold for approximately 96 bitcoins on Binance. This had many filled with mixed emotions, given the fact that that sale alone made the SYS gain a value of about $6 million. To rid one of his or her confusion, the SYS team was quick to respond and clarify such matters.
To break all existing assumptions, the SYS team first made it clear that it was neither a hack nor a “51 percent attack”, but rather a SYS update that was released as an attempt to prevent a bug from blocking the validation processes. Users were previously advised to “upgrade to 3.0.6 to proceed to validate blocks”, urging those who have yet to do so to make the necessary changes.
A week later, namely July 3rd, 2018, the team noticed that the blocks were not housing the average number of transactions they would on a regular basis, stating that they “detected large buy walls across exchanges”. In addition to this concern, masternodes became challenging, as they all were coming to an end due to the lack of mining.
The alleged bug was established at 1:00 PM PST, which the team strongly believes is the principal reason for the whole mining process to exit altogether. This eventually led to drastic changes in fee polices, which were apparently above average. Therefore, transactions that did not meet the set criterion was “backed up in the Mempool chain”. Those mined at lower rates were clustered together resulting in “larger than normal amounts of Syscoin… in a single block.”
To quote the Syscoin team,
“This resulted from majority miners having higher fee policies and the smaller miner picking up transactions when it won a block at a lower fee. We saw hundreds of transactions bunched up in these blocks with high output values […] A chained transaction set of a 46 million Syscoin output could quickly add up to a large amount […] This is precisely what happened in these blocks.”
This might explain why Binance had a system maintenance announcement not too long ago, as exchanges were asked to stop trading. In this time, Binance supposedly altered its API, prior to allowing its users to trade again.