June 12, 2017 Monday, it was when Bancor started the opening of its token offering. And as easy as it was, new and would-be investors visited the site to have a chance of exchanging Ether for the new Token Bancor Network Tokens (BNTs).
This certain token offering was open for at least a one-hour minimum time, during which all contributions would be accepted that was made even possible for the non-U.s. citizens with the affiliation of Bancor with escrow agent Bitcoin Suisse AG, giving these certain investors an opportunity to have a guaranteed stake in the Bancor Network Tokens using a pre-contribution offering but of course in accordance of the Bitcoin Suisse AG’s Framework Agreement.
An unclear clogged happened during the transaction through the Ethereum network; still not known if it happened of directed denial of service (DDoS) attacks or simply because of the mass crowdsale participants.
A quick note has been dropped during that blocking by Bancor’s end:
Massive attack on our network. Ethereum Blockchain under heavy pressure. We are monitoring and all is well. However website API can’t update.
Update:” MINIMUM TIME EXTENDED TO 3 HOURS due to massive malicious attacks on network & resulting pending transaction bottleneck”
This has lead that the token offering mechanism which it was operating under, failed to trigger because it became stuck with another transaction. While Bancor chose to extend the minimum time for the offering or until the second hidden cap was met, it had raised – more than $153 million.
The attacks were announced couple of times on their twitter account concluding that the targets are only their network, website and application and not Ethereum.
Nick Johnson, Ethereum Name Service’s core developer concluded that there are no critical issues found with Bancor’s token offering. In his report, it was mentioned that none of the issues presented security vulnerabilities or an undue advantage to an attack and assured that Bancor has found a way to handle it:
“This issue is common to all onchain exchanges, and countermeasures are difficult for any exchange, though on talking to the Bancor team they have suggestions for future improvements. Bancor have somewhat mitigated frontrunning by requiring users to specify a minimum price at which a trade will be executed, to hedge against large price shifts.”
Down below you can see the Token Allocation and the Use of proceeds, with an easy to reference pie chart by Medium post:
Traders will be waiting for 7 seven days for the token to be distributed to them but for investors who exchanged Ether for BNT will be getting the token immediately before they can diversify their part into other cryptocurrencies.