Cryptocurrency called Syscoin (SYS) on Tuesday, July 3, found the “strange trades in combination with atypical activity in the blockchain”. After a detailed investigation, the company explained what happened that day, the document posted on The Next Web.
The Syscoin team argues that the cryptocurrency blockchain was not hacked or compromised in any way, and what happened on July 3 — a simple coincidence. Some users have noticed that the network has processed the transaction block with coins, the number of which exceeds the total amount of all released SYS. It caused suspicions that the blockchain can be compromised. At the same time, it was discovered that one unit was trading SYS for 96 BTC at the exchange Binance. Given that these two events occurred almost simultaneously, many have suggested that they are somehow linked. But the Syscoin team says that it is not.
A huge number of coins in the blocks due to the failure of the program for the distribution of remuneration among the miners. A week before the incident, Syscoin released a mandatory update that was to fix a bug calculating the remuneration for mastered, miners and software client. 3 Jul for miners (and other participants) was the deadline when they were supposed to install the update. If they didn’t, it could no longer mine.
Major miners, who took an update, found a higher fee, and took small transactions with less fees. This led to hundreds of transactions that have been grouped together in huge blocks. Although the developers say that this behavior is expected, they are noted in this strange activity.
Belonging to the Syscoin wallet with 46 million SYS in this period began to send remuneration. These requests were in the blockchain as an unconfirmed transaction and were quickly added to the total number of coins that may have led to the creation of two huge blocks. Because of this, the Syscoin team has asked the exchange to temporarily suspend trading SYS on their platforms. Bittrex and Poloniex immediately stopped trading, and Binance decided to try to figure out what the problem is.
The Syscoin team says that as soon as it became clear that the unusual activity caused by the recent update and not a glitch in the blockchain, its representatives immediately asked the exchange to resume trading SYS. However, the Syscoin developers claim not to know what may be causing such a huge price on Binance.
Binance after the incident, reset their API keys. The Syscoin team indicates that 7000 bitcoins had been withdrawn from the stock exchange during unusual trading activity. Also some users in the community Syscoin reported problems with bitcoin deposits on Binance. However, the Syscoin team says could not establish a connection between these events.
Note that, although Binance actually pleaded guilty to the abnormal trade Syscoin (exchange trades rolled back, temporarily reduced Commission and launched a Fund for the protection of users ‘ funds SAFU), she never answered the question why someone was selling one for a 96 Syscoin bitcoins.