NEO (NEO) has had a torrid Wednesday, as its price dipped -8.79% to drop below $100, days after twitterstorm.
Here is how it all started.
The last few days have been nothing but eventful for NEO cryptocurrency and its community. You must have heard of or even followed the dramatic events that unfolded on Twitter earlier this week. At the center of attention was NEO coin, and how its blockchain supposedly had a glitch that almost “crumbled” the entire network.
First, it was a post by NEO’s Malcolm Lerider which appeared to suggest that one of the consensus nodes had failed during a consensus, pulling down the rest of the nodes with it. He called it “an edge case deadlock”. He then went ahead to clarify that the problem had been resolved by restarting all seven nodes and that the edge case would be handled automatically via a patch. The deadlock had caused a block delay in NEO’s consensus, something that caught the attention of Eric Wall, a columnist for Bitcoin.com’s “The Wall” trading column.
And that’s how the FUD went viral. But this wasn’t the first time articles about NEO’s blockchain had steered controversy with content that was clear FUD. Earlier, the Store of Value and an article on Bitcoin.com had questioned NEO, both referring to it as a disaster.
So, when Eric’s Twitter rant about the failures in NEO went viral, even prominent blockchain experts and supposed leaders weighed in with re-tweets that exacerbated the matter. They included Charlie Lee, Emin Gun Sirer, Jared Tate, and Vlad Zamfir. While it isn’t at all criminal or such to express your personal opinion on matters in the public domain, it calls for a sense of responsibility from people with a certain standing in the community.
When they spread unconfirmed claims about a cryptocurrency like NEO or whichever without evidential proof, then that’s FUD that can’t easily be wished away.
This is what Eric Wall had to write today as part of his apology about the whole matter:
“This Saturday, I read this Discord message from Malcolm Lerider in which he described the circumstances under which the NEO blockchain failed. Based on a set of assumptions I made, based on that message, I wrote a twitterstorm that went viral” Eric Wall.
Eric goes on to say:
His apology comes after the NEO Council issued a statement clarifying the issue among other things related to the NEO blockchain. That statement had been preceded by a tweet that labeled Lerider’s initial comments as not true.
The NEO council statement that should reassure the NEO community
The NEO Council statement begins with the following tacit message, which I find very appropriate under the circumstances of what transpired over the weekend and part of this week.
“Da Hongfei, Founder of NEO, explains with below facts to answer the questions and clarify recent confusion regarding NEO dBFT consensus mechanism, the latest block delay, as well as NEO’s plan for the decentralization of consensus nodes”. NEO Council statement
The statement goes on to explain what the NEO Council considers as the reason that triggered the block delay. It turns out that the NEO developers knew about the issue, and that they were working towards a solution.
“One or even two Consensus Nodes going offline or colluding maliciously will not trigger this issue because dBFT tolerates “f” (in NEO’s case f=2) faulty nodes given there are “3f+1″ (in NEO’s case 7) Consensus Nodes. We are pretty sure the block delay is caused by a corner case lying deep in NEO’s p2p protocol implementation: in some unusual scenarios, Consensus Nodes disconnect from the networks temporarily but reconnect shortly after. In such scenarios block delay is observed. We had been testing fixes for weeks on testnet and it was planned to be deployed on mainnet this week”
By having had plans for a mainnet launch, NEO demonstrates an understanding of the need for a continuous protocol evaluation. It is sad that the FUD was spread without seeking to establish the facts behind what NEO had been doing. This unfortunate scenario demonstrates that investors need to be aware of not only the vulnerability of cryptocurrencies but of opinion makers and experts. The Da Hongfei statement sums it up nicely as this:
“We are sorry to see that FUD is spreading among those who are not aware of or agree with NEO’s vision and philosophy. We hope these facts will help people to understand NEO Council’s standpoint on relative issues”.
And to prove that the twitterstorm threatens NEO (NEO) comes from the performance of NEO. The coin is -8.67% down against the USD, its price falling below $100 for the first time this month.