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PAX-Based Ponzi Scheme Uses 15% of All Ethereum (ETH) Gas, Becomes First Consumer After Tether (USDT)

News
Mon, 05/25/2020 - 14:31
Vladislav Sopov
Some may have thought that the times of huge crypto Ponzis like PlusToken, OneCoin or Quadriga were over. But a new giant has arisen
PAX-Based Ponzi Scheme Uses 15% of All Ethereum (ETH) Gas, Becomes First Consumer After Tether (USDT)
Cover image via stock.adobe.com
Contents

Recently, a new Ponzi scheme based on cryptocurrency investments has been revealed, which started eating 15% of Ethereum (ETH) network resources.

Old but gold

This Ponzi is styled after the most infamous post-Soviet Ponzi scheme of the 1990s and utilizes the name of legendary Russian fraudster Sergey Mavrodi. 

The ‘crypto edition’ of this notorious scam pledges a monthly income of up to 30% and refuses to recognize itself as a high-risk product. It uses the Paxos Standard (PAX) ERC20-based stablecoin as an investment instrument.

Ponzi scheme becomes second gas consumer in Ethereum
Image by Ethereum Gas Station

At the moment, Ethereum (ETH) resources explorer Eth Gas Station indicates that this scam is the second largest user of gas in the Ethereum (ETH) network. Only the world leading stablecoin USD Tether surpasses it in terms of gas spent.

Etherscan statistics demonstrate 15,6% usage of network by scam
Image by Etherscan

According to the Gas Tracker by Etherscan, the address of this scheme is responsible for 15.66% of all gas usage in the Ethereum network

Renaissance for Ponzis

Such enormous gas consumption has already resulted in an upsurge of safe minimum gas fees in Ethereum (ETH).

If this scam continues its growth, the Ethereum (ETH) blockchain transactions may get stuck. This may be the first Ethereum (ETH) congestion not caused by NFT game euphoria nor price fluctuations.

The problem of scams abusing blockchain resources isn’t unique to Ethereum. Last November, the EOS blockchain was clogged up by a shady airdrop.

Its smart contract transactions made CPU usage in EOS skyrocket, which resulted in a wide-scale network collapse.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)