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by Joseph Young FCoin, a China-based cryptocurrency exchange which vowed to compete against Binance, the world’s biggest crypto exchange in volume, has single handedly clogged up the entire Ethereum network throughout the past week.
On July 2, the transaction fee of the Ethereum network reached 5862 ether, well surpassing its all-time high on January 10, when the total gas cost on Ethereum reached 3696 ether. Users of the Ethereum blockchain protocol were taken aback by the sudden increase in the number of ether transactions and fees, which temporarily clogged up the network.
The abrupt rise in transactions essentially crippled Ethereum for many hours, preventing various decentralized applications (dApps) and ether users from sending transactions without high gas costs and transaction fees. The strange spike in ether transactions on July 2, 2018, was in result of the controversial business model of FCoin, a Chinese exchange founded by the former chief technology officer of Huobi, currently the third largest cryptocurrency exchange by volume, which encourages users to vote for soon-to-be listed digital assets by the form of airdrops.
On the FCoin exchange, candidates of exchange listings are required to airdrop tokens to the users of the platform who then vote to pick digital assets to list on the day. Assets with the highest number of votes are listed to the platform and can begin the process of integration.
But, the voting process requires a method called airdrop, a process of distributing a large amount of token to a certain user base. Airdrops are often used by newly created blockchain projects that hope to increase the adoption of their tokens. Read more from btcmanager.com…
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