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The Effects of the ERC20 Batch Overflow Bug




The cryptocurrency marketplace has always been susceptible to complicated fraudulent transactions and data-breaches, spearheaded by a number of hackers that want to exploit the potential weaknesses in the system. The most recent case is that of a bug that exposes a critical vulnerability in the ERC20 protocol. Investor circles and crypto-analysts were occupied over the last week since the news of the bug broke out, and its effects can be readily visible on the affected tokens.

The bug was first detected by PeckShield, a blockchain based security startup who found that there are critical areas of vulnerability several Ethereum smart contracts.  The bug triggers an “integer overflow”, a glitch where attackers can transfer a huge amount of tokens to any address with a zero balance. Following the discovery, several Cryptocurrency exchanges like OkEx and Huobi Pro suspended ERC20 token trading, and several tokens like UGToken, SMART, MTC, FirstCoin, GG Token, CNY Token, MESH and SMT feeling the direct effects.

A Little about the ERC20 Protocol:

The term ERC20 refers to a particular technical standard applied to smart contracts operating on the Ethereum blockchain. It allows developers to accurately predict the interaction between multiple tokens. These also include specific protocols for token addresses as well as how each token is accessed.  The number of ERC20 has risen exponentially over the last year, with EOS, Bancor, Quash being just some of the successful ones.

As detected by PeckShield, the ERC20 bug was first noticed when an unusual transaction associated with BeautyChain was recorded, where large amounts of BEC tokens were being sent to different wallet addresses.  The bug, coined as “BatchOverFlow” could be exploited by attackers to generate an extremely large amount of tokens to deposit into a normal address, making them vulnerable to price manipulations.

Effects of the Bug:

The effects of the bug could be almost instantly felt, with the news spreading like wildfire inside the crypto-community, sparking negative sentiment among investors. Many exchanges such as OKExv suspended deposits of ERC-20 Tokens almost immediately. However, many entities were not spared from the ill-effects of this bug, as evidenced by MyEtherWallet. Users of the wallet inadvertently interacted with a phishing website, which exposed their login data as well as fund information.

Other effects like Poloniex, Coinone, Hitbtc, Changelly, QUOINE etc followed suit and suspended all trading activities with ERC20 tokens. Almost all exchanges have started reviewing their security vulnerabilities as well as an internal inspection to detect the vulnerability. U.K based researchers have already concluded that about 34000 smart contracts are at a risk of infiltration, which valued to a total of $4.4 million in Ethereum, accounting for 3.4% of smart contracts on the global scale.

Final Thoughts:

Vulnerabilities in any Cryptocurrency protocol can be disastrous in the long run, providing hackers and criminals to swindle away huge sums of money from exchanges.  This is, however, not the first time a case of “integer overflow” had been detected, with Coinbase suffering the same fate almost a month ago.  At the beginning of March, Dutch security firm, VI Company had found that Coinbase users cold reward themselves with endless amounts of Ethereum. Thus, the latest case of the Batch-overflow bug should be handled effectively to ensure that such security gaps do not appear in the near future. Already exchanges and wallets are trying their best to mitigate the situation, with MyEtherWallet ‘s CEO promising a full refund if the fault is their own. No matter who the culprit is, however, repeated detections of vulnerability in Ethereum’s system can damage its long-term viability and reputation, effectively dislodging it from its podium.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Christoph Scholz via Flickr


XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange



Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited ( ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub ( ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Should Crypto Projects Devote Resources to Community Growth and Marketing?



2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata



Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub ( will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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