When it comes to successful blockchain networks, dApps help to drive popularity. The Ethereum Network kicked off the dApp trend with killer dApps like Crypto Kitties and Ethlance. Since then, other blockchain networks have followed suit and created their own dApp ecosystems.
Unfortunately, the dApps published on these other networks aren’t all as secure or well vetted when compared with those on the Ethereum Network. dApps on the EOS Network have lost more than $1 million in the past five months due to hacks in smart contracts and general bugs – a rather scary sum of money to lose.
EOSBet Leading the Way
EOSBet is a large contributor to this insane amount of lost money. It has been hacked twice in the past three months, both times due to flaws in its smart contracts. In the first attack, hackers stole $240,000 worth of EOS after exploiting a bug that made all bets winning bets – including those that would actually constitute a loss.
A couple of weeks later, hackers hit EOSBet once more stealing a whopping $338,000 worth of EOS after injecting code into a smart contract that initiated a huge cash out to the hacker’s account. If you do the math, EOSBet contributed to more than half of the total stolen from EOS dApps in the past five months – a rather disconcerting figure, especially after EOSBet just became a regulated blockchain casino.
Justin Sun Rescuing Developers or Muddying the Tron Network?
In a Tweet, Justin Sun – Founder of the Tron Foundation – said that any developers looking to abandon the Ethereum and EOS network were welcome to move over to Tron. In a bid to encourage these dApp developers to migrate to his network, he promised to build a fund to help support projects and spark development of dApps on the Tron network.
However, given the fact that EOS dApps have lost more than $1 million in five months to hackers, Justin Sun could be dooming his own network to the same fate. Due to the fact that the industry is so young – along with smart contract technology – many developers are still learning the ropes. This then leads to huge bugs in the code that can be exploited relatively easily.
EOS Seriously Struggling
It’s no secret that EOS is has started to struggle. EOS lost its place in the top five list of cryptos by market cap to Stellar back at the beginning of November. Bitcoin SV is approaching EOS in the number six spot and looks set to make a move and dump EOS down to seventh place. EOS hasn’t weathered the crypto winter very well, and if the bear market continues to rumble on, we could witness it fall below Tron sooner rather than later.
Developers of dApps need to step up their games, especially on the EOS Network. Projects can’t afford to hemorrhage money at this alarming rate, and it will lower token holder trust in the network over time. This could be dangerous for the network as a whole and could lead to the ecosystem sinking like the Titanic.