EOS & Huobi Dismiss 'Voting Scandal' Suspicions
Main page Analytics, EOS, Cryptocurrency Exchanges

EOS and Huobi refute information about their participation in the manipulation of voting and collusion by the block producers.

At the end of last week, it was reported that EOS block producers could participate in a coordinated mutual voting. The network has a document “Huobi Pool Node Account Data 20180911,” the author of which is allegedly an employee of the exchange. Based on data that has become available to the public, block producers in the EOS network can participate in mutual voting and share revenues. Twitter account MapleLeafCap presented an analysis of documents leaked to the network.

Documents show that Huobi votes for 20 different block producers - 16 of which vote for Huobi as well. Due to centralization in the EOS blockchain, when only a few producers are responsible for consensus, crypto exchanges seem to be successfully controlling the network. In other public blockchains, they have no such influence.

However, both sides disagreed with the suspicions of fraud. Huobi has prepared an official response to the allegations of collusion among EOS block producers. This is stated in the Twitter account cnLedger with reference to the Chinese edition of Jinse. The platform claims that it does not have any financial contracts with partners regarding voting on EOS blocks. The exchange also notes that the investigation is ongoing, and it looks forward to the interaction of all stakeholders.

Block.one, the main developer of the blockchain EOS, also released its statement regarding the current situation. However, there is no specifics in it either. The CEO of Block.one Brendan Blumer simply talks about the importance of a free democratic vote and promises that the company will work on an optimal model for the decentralized management structure of the EOS blockchain.

«We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process. We continue working on our potential involvement with the goal of empowering the intent of the greater community through a transparent process that incorporates community feedback,» he explained.

The EOS platform is developed by the Block.one technology company. This is a blockchain platform for large organizations with the ability to process millions of transactions per second. It is based on an asynchronous smart contract technology. The platform immediately attracted the attention of investors, who saw the potential for development in EOS. However, since its launch, the EOS network has been following a series of failures, although it was the largest ICO in history. At the same time, products running on the EOS blockchain are subject to hacking.

The project has other weaknesses - EOS is often accused of centralization. There are so-called block producers in the system. They have broad powers and were included in the system in order to resolve conflicts between users. But this also means that if producers agree, they can gain complete control over the entire network. This fact causes many questions and accusations. For example, users were very unhappy when the producers of the units decided to freeze seven addresses that they considered fraudulent. But this did not stop the producers and other 27 addresses fell under the hot hand.

EOS Mainnet Live At Last

At the same time, EOS claims that the project is very important for the community, so in August the project launched the Alliance platform, where users can take part in discussions and vote on the development of the project. And not everyone agrees unanimously to blame EOS. The opinions of participants in the crypto market and the last scandal were divided.

«The amount of money necessary to collude to 67% attack EOS is huge. This is an investment in the many billions of dollars. So what incentive would they have to LOSE ALL THAT MONEY by running the risk of alienating investors. This would never happen, unless you have huge billionaires that HATE EOS. Even then they would not just throw money away like that. They would rather fund FUD campaigns, as it is much cheaper,» one of the Reddit users under the nickname “eosview” argues in favor of EOS.

Eosview put forward the theory that the charges were due to the uncertainty of crypto investors in the market itself, as well as excessive panic. He analyzed the situation and concluded that what was happening was just FUD (fear, uncertainty and doubt).

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

Read also:
Please describe the error