The EOS price has been able to stay above the $12 support despite a major security flaw discovered on its network.
The currency, just like the general cryptocurrency market, has recorded losses since the start of May, with EOS testing the $10 support level at one point. However, the bulls have been able to pull it back to the $12 level but it is barely hanging on at that level.
The primary reason for the dip in the price of EOS is the security flaw discovered by security firm 360. GitHub user and EOSIO contributor ‘noprom’, stated that;
I am using the EOS RPC API to develop some dapps, when I unlock my wallet using /v1/wallet/unlock, I can use /v1/wallet/list_keys to get all my keys, and these keys are exposed to the internet. There may be some security problems.
The revelation of this flaw saw the price of EOS plunge by 7% within an hour and is now trading around the $12.40 region. Dan Larimer from EOS attempted to lift the spirit of traders by tweeting that the team will offer compensation for finding bugs in the blockchain before the mainnet launch.
Help us find critical bugs in #EOSIO before our 1.0 release. $10K for every unique bug that can cause a crash, privilege escalation, or non-deterministic behavior in smart contracts. Offer subject to change, ID required, validity decided at the sole discretion of Block One.
This tweet, however, enraged the cryptocurrency community who feel that a project that has raised $4 billion so far should be able to offer a more generous compensation for finding critical flaws in its network two days to its launch.
Litecoin founder Charlie Lee tweeted that;
Raises $4B, offers to pay only $10k for catastrophic bugs 2 days before mainnet launch. Strange.
The EOS mainnet launch will take place on June 2nd and the team has already taken care of the bugs discovered by 360 security firm. The launch of the blockchain will mark the end of a year-long ICO by Block.one, making it the biggest and longest ICO in history. With over 900 million tokens sold in one year, Block.one faces a big task as only 47% of the EOS tokens have been registered for migration. This percentage isn’t up to the threshold the team had planned for migration even though the token swaps will still take place.
A look at EOS price chart reveals that it is still trapped in the descending channel started earlier this month. The 50 SMA is still a major barrier towards EOS next resistance region at $13.00. With the discovered bug taken care of and the mainnet launch drawing closer, the price of the token is expected to rise further over the coming hours, and will most likely test the $13 support level.