Coinbase reported that the EIDOS-token airdrop caused problems in dealing with transactions of its clients due to EOS network congestion. EOS Entered Congestion Mode After EIDOS Airdrop.
The EOS network solely worked to distribute a new digital coin, EIDOS. It is believed that the coin, already traded on exchanges, offers an opportunity from its sale to generate almost guaranteed income.
According to the blog, Coinbase began to see the degraded performance for EOS transactions on November 1, 2019.
In response, Coinbase increased the staked CPU in the wallets and monitored to unlock customer transactions.
The company claimed the significant increase in activities in the EOS network linked to the newly launched EIDOS-token airdrop could be due to this declining efficiency.
Considering the situation, many exchanges list EIDOS/USDT pairs, which allows people to sell airdropped USDT tokens.
Coinbase, in its blog, said:
“Currently, we’re observing around 95% of all EOS transfer actions are related to the EIDOS contract. Because each transfer counts towards the amount of CPU used in a block, this spike in transfer actions caused the EOS network to enter congestion mode.”
Due to the congestion, users with a few staked CPU resources were unable to submit transactions.
Coinbase also stated:
“It is important to note that the EOS protocol is behaving as expected, but the congestion mode prevents users from having transactions processed that exceed their CPU stake.”
The reviews on the airdrop were mixed with some supporters believing that the EOS proponents were dubious. Whereas thers took the chance to turn the network into a direct source of revenue.