Mysterious Token Airdrop Takes up Nearly 60% of Ethereum's Network

Francisco Memoria

The airdrop of a mysterious ERC-20 token on the Ethereum network has seemingly been taking up 60% of its transactions and taking up most of its capacity unit, gas, in the last few days. The airdrop appears to be taking place to only draw attention.

According to Etherscan data, an ERC-20 token called More Gold Coin (MGC) is being airdropped to thousands of Ethereum addresses for no apparent reason. The airdrop is taking up most of the ETH network’s transactions and gas – a unit that helps calculate fees that measures how much “work” an action takes to perform.

Airdropping address taking 59% of Ethereum's txs

This doesn’t mean transactions on the Ethereum network are skyrocketing, TrustNodes claims, as gas and transacting capacity aren’t the same. The amount of gas used, as mentioned above, depends on the amount of “work” that needs to be done, which means one transaction can consume an amount of gas equal to 100 transactions.

Ethereum transactions over the last 24-hour period have, in fact, fallen as the token’s airdrop is performing computationally intensive calculations, which are taking most of the network’s resources. While the number of transactions dropped, gas usage surged to a new all-time high.

Ethereum Gas usage over time

Transaction fees on the ETH network are still fairly low, however, although these depend on the action being performing. Sending some ether has a rather low cost, while sending a non-fungible token through the network may cost more.

At press time the airdrop is still ongoing, although it’s currently only consuming about 6% of the Ethereum network’s resources. Its purpose remains unknown as the MGC token appears to not even have a website.

Brian Kelly Says Ethereum Being a Commodity Is 'Huge' for Crypto Markets

  • Brian Kelly is unfazed by the SEC's denial of bitcoin ETF's because of brokerages like Fidelity entering the crypto space. 
  • The veteran investor called the CFTC's classification of ethereum as a commodity 'huge' for the market and the potential for institutional investment. 

CNBC’s Fast Money trader and regular crypto commentator Brian Kelly has said Ethereum being a commodity is a “huge” win for the market and brushed off the setback on BTC exchange-traded funds (ETFs).

While the U.S. Securities and Exchange Commission (SEC) put a damper on the crypto markets earlier in the week by denying the latest round of bitcoin ETF proposals, Kelly says that he is less concerned about the development. The veteran investor highlighted the entrance of large brokerages into the crypto markets as filling the need for ETFs, 

The problem the SEC has is a huge portion of bitcoin trading is outside of the US. The concern is they don’t have a view into those markets. That being said there’s been some developments. You have companies like Fidelity and TD Ameritrade starting to push into this space.

He continued, 

So ultimately you’re going to be able to buy bitcoin in a regular brokerage account, or it’s going to look like a regular brokerage account. So I’m less concerned that you need a bitcoin ETF at this point in time.

In comparison to news of the SEC denying bitcoin ETFs, Kelly was bullish on the CFTC determining Ethereum and smart contracts to be a commodity. 

According to Kelly, such a classification will pave the way for institutional investors, 

The SEC saying Ethereum is a commodity is huge for this space. It gives us regulatory clarity. The CFTC has now said, ‘Listen, if you’re buying bitcoin on these smart contract platforms they are commodities. That opens the door for institutions to come in.

Kelly explained that his conversations with institutions has centered around the potential of bitcoin and crypto eventually being banned as an asset. However, the CFTC’s decision to label ethereum as a commodity now alleviates that concern. 

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