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.

Crypto-Focused Research Firm Says Ethereum Is 'Significantly Undervalued'

Siamak Masnavi

On Tuesday (May 26), crypto-focused research boutique Blockfyre explained why its analysts believe that "Ethereum is significantly undervalued at current prices."

ETH-USD 24 Hour Chart on 27 May 2020.png

Blockfyre says its analysis is focused on the following four progress indicators for Ethereum:

  • Development Activity (developers keep improving Ethereum regardless of how the Ethereum price is doing)
  • Gas Used (activity on the Ethereum network keeps growing, mostly thanks to growing interest in stablecoins, which are mainly built on Ethereum) 
  • Mean Dollar Invested Age (investors like HOLDing Ethereum)
  • Miner's Balance (miners like HODLing Ethereum too)

The charts of these four progress indicators against the change in price of Ethereum over time leads Blockfyre to conclude that although the price of Ethereum has gone down a lot since its all-time high in January 2018 and Ethereum has been trading "sideways" since th end of 2018, these indicators paint a promising outlook for the Ethereum network and the Ether cryptocurrency.

Featured Image by "vjkombajn" via Pixabay.com