EOS Price Behavior: EOS/USD Has a Big Stumbling Block in the Way of Greater Upside

  • EOS price has managed to stabilize after the aggressive selling that hit the market on Sunday.
  • The EOS blacklist system is not efficient, as a hacker was able to steal $7.7 million worth of the digital currency.

EOS/USD: Recent Price Behavior

EOS/USD daily chart.

The EOS price has been attempting to find its feet following the heavy selling pressure that hit the market on Sunday. EOS/USD had plunged a significant 20%, a move that occurred across the market. Given the recent run to the north that the EOS price was on, it was also one of the standout under-performers when the wave of sellers came into play. At the time before the fall, it achieved its highest level seen since 19th November. EOS/USD had printed new highs for 2019, after what had been a slow start so far to the year.

EOS/USD weekly chart.

In terms of the weekly chart, there is a significant zone that saw the bulk of price action.The area tracks from $3.80 up to $4.60, which has been notorious for attracting substantial buying. Back in December 2017, the price used this area as a launch pad for a rally to dizzying heights up at $18. The same thing occurred in March 2018, springing to fresh highs for EOS up at $23. A heavy fall in the market occurred from April to August 2018; the area again came into effect of comforting the falling price.

Over $7 Million Worth of EOS Stolen

Just ahead of the earlier described significant drop in the market, a reported hacking took place that saw $7.7 million worth of EOS stolen. It occurred allegedly due to one of the 21 maintainers of an EOS blacklist having failed to execute its job.

The hack was announced on Saturday 23rd February within a public Telegram post by EOS42 – a web-based EOS cryptocurrency community. EOS42, also known as EOS Go, noted that one of its users had their EOS account compromised by an attacker on 22nd February. After identifying this hack, the user of whom is unnamed followed the standard security steps that were hard-coded within the EOS blockchain code to facilitate the blacklisting of malicious accounts.

Failed Procedure

In terms of the above-detailed procedure, it in effect is notifying the top 21 block producers. It is something that is used across the community to describe the most effective miners of the cryptocurrency.

Furthermore, a blacklist is supposed to be updated by the 21 top block producers,. Cryptocurrency exchanges would use these to ban malicious accounts from interacting with their platform. This is all part of the procedure to prevent hackers and other entities from moving stolen funds.

The EOS42 team had noted within their recent blog post: “All top 21 Block Producers must have their blacklist updated. If only one top 21 BP does not have an updated blacklist, hacked accounts are vulnerable to being emptied. This scenario played out in the last 24hrs when a newly rotated top 21 BP failed to apply the blacklist. Unfortunately, one blacklisted account holding [2 million] EOS began to be emptied.”

Lastly, Games.EOS was identified as the EOS block producer that failed to update its blacklist. It is a platform for developing EOS-based blockchain games. It was only recently that it entered the top 21 block producer ranking and was not running an up-to-date blacklist.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.