On July 3, 2018, Syscoin tweeted pointing out that atypical blockchain activity was noted from their side and they request the exchanges to stop all $SYS deposit or withdrawal for that day.
This caused a lot of confusion in the neighborhood with speculations regarding the hack. Records pointed out that one billion Syscoin was extracted from a single block, despite the total supply being around 888 million. In a current article on Tool, Syscoin team stated that they take its safety and security really seriously which’s why the short-term cease on deposit/withdrawal from exchanges was announced.
See likewise: Binance puts on hold trading, withdrawals and various other account features
The team in the blog post mentioned that Syscoin was not hacked, compromised or attacked, as it was reported. Actually, the reality is “another thing completely”. They released Syscoin 3.0.6 around 10 days earlier. The article discussed, “The launch was a required upgrade repairing an administration superblock fee calculation bug. Once a superblock with deal costs was hit, it would certainly not validate customers that hadn’t moved into the obligatory upgrade.”
On July 3, a large increase in the rate as well as trading quantity of Syscoin was noted. Before the rate movements on Binance, their group spotted huge buy wall surfaces across exchanges and discovered some irregularities. They saw that the blocks that are being processed were not consisting of transactions consistently. Additionally, masternodes were running out with the mining trouble going down because of huge miners not extracting with their ASICs.
See also: The Exponential Growth of Syscoin (SYS) Scents Fishy: SYS Price Evaluation
A Superblock was produced at around 1:00 PM PST, as well as they specified that it was “anticipated as well as gotten ready for weeks in advance”, causing some miner nodes to stop. Post this, numerous huge mining swimming pools set fee plans that were more than the coin’s default rate. So, the transactions where the criteria were not pleased, they came to be “supported” in the mempool of the chain. Continuous mining by the miners with reduced cost prices with purchases being processed in batches, making it show up “larger than regular quantities of Syscoin to be negotiated in a single block”.
A mechanical engineer turned journalist, Shekar takes a keen interest in the study and analysis of cryptocurrencies and blockchain strategy. With the cryptocurrency world blooming in the recent days, he finds great interest in monitoring their growth and gathering every possible piece of information about them. He works as a crypto-journalist for the website Beyond Bitcoinx.