The EOS blockchain network remains gridlocked as it continues to airdrop the EIDOS token. Coinbase claims the congestion caused delays in processing transactions.
In its latest blog post, Coinbase revealed that it had problems processing their clients’ transactions because of the EOS congestion. The exchange platform explained that the EIDOS token was launched on EOS on Oct.31. The coin’s airdrop included sending transactions on EOS from EIDOS’ smart contract.
Platforms have already lusted EIDOS/USDT pairs on Nov.1 to give people who received the tokens time to sell them for stablecoins. However, EOS had to lease their CPU time to boost the number of deals that it can process. This resulted in the network going into congestion mode and limiting the number of contracts users can send to their pro-rated share of total staked CPU resources.
The EOS network went offline from November 1 to November 8. While activity on EOS has already resumed, most of the activity remains centered on lending resources. Many transactions are still backing EIDOS’ simulated airdrop and mining.
Coinbase also shared that EOS freed up the congestion on its network by increasing the number of staked CPU, thus ensuring the network had enough CPU time to process its transactions. The solution also had an interesting upside. It caused the price of EOS’ CPU time to go up by more than 100,000% for more than four hours. In fact, the CPU time’s price hit almost 7.69 EOS/millisecond.
Price Drop Because of Selling Pressure
The spike in the usage price reportedly could be due to speculation on network resources. Owners with large resources can easily purchase EIDOS and then sell it for USDT on another exchange. It could have led to the volatility of EIDOS’ market price. The token dropped from $0.056 to $0.021 because of the selling pressure. The EOS token remained at $3.55 though.
Meanwhile, average users’ staked CPU resources are quite low so they can’t send transactions at the moment. But EOS assures clients that the situation is only temporary. The assessment is in line with Coinbase’s own evaluation.
The company said it expects the network to return to normal once it is not profitable to collect EIDOS or when the CPU leases end and the lenders don’t renew. The leases are expected to last for 30 days.
Coinbase also noted that the EOS protocol is working as expected despite the congestion. It also pointed out that the mode does stop users from having their transactions processed once it went over their CPU stake.