Is Bitcoin Crashing Because Of A “Successful” DDOS Attack?

Dalmas Ngetich

2 years ago

2 mins read

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Recent reports suggest that Bitcoin is under a Distributed Denial-of-Service (DDoS) attack, forcing prices lower and transaction fees higher. The attack, observers note, is orchestrated through spam inscriptions that are clogging up the network, inconveniencing users.

Bitcoin Is Under Attack?

The so-called spam transactions via the Bitcoin Ordinals platform have prompted many to speculate that this is a DDoS attack.

In a DDoS attack, the malicious actors seek to overwhelm a network or server with traffic from multiple sources, rendering it inaccessible to users. In this case, the target was Bitcoin’s nodes tasked with confirming transactions.

Majority of tx's are currently just spamming the block space.

They're all 152.5vb in size transacting precisely 0.00000546 btc.

DDOS test? pic.twitter.com/l9yDTnkuL9

— Death Cab to QE (@DeathCabToQE) May 7, 2023

The memory pool, better known as mempool, stores unconfirmed but valid transactions waiting to be processed and remains clogged with transactions.

Analysis shows that the unconfirmed transactions currently exceed 466,000, comprising mostly assets from the Bitcoin Ordinals platform generated from UniSat.

UniSat is an open-source wallet and a Chrome extension that allows users to store and transfer Ordinals inscriptions and tokens compliant with the BRC-20 standard.

BRC-20 tokens are fungible tokens that are compatible with the Bitcoin network. The wallet had temporarily shut down following many double-spend attacks on the platform.

⚠️Due to some existing issues UniSat Marketplace is temporarily not available for accessing.

Sorry for the inconvenience. We'll keep you updated on this.

— UniSat – Inscribe your dream. (@unisat_wallet) April 23, 2023

The marketplace reopened on April 27, 2023, coinciding with the increase in transaction fees and the surge of transactions on the Bitcoin network. As of May 6, the number of on-chain Bitcoin transactions was at record highs.

Signs Of What Lies Ahead?

There are concerns among analysts that the recent surge in transactions, which resembles a prolonged DDoS attack, could indicate a potential coordinated sabotage by malicious entities. According to the analysts, these actors could be aiming to cause instability and unreliability in the Bitcoin network.

In response to the flood of transactions from the Ordinals platform, on-chain transaction fees on Bitcoin have risen as the network congests.

Bitcoin is under DoS attack. High transaction fees are the chosen pain point by the attacker, probably to makes bitcoin unusable for smaller players. pic.twitter.com/0J56liNSGf

— on_break (@jogiwashere) May 7, 2023

Meanwhile, prices are lower, approaching the $27,000 mark. This level is a critical support level flashing with April 2023 lows.

Bitcoin Price On May 8| Source: BTCUSDT On Binance, TradingView

As BTC’s price continues to fall, investors and traders are increasingly concerned about the overall state of the cryptocurrency market, which is already experiencing significant volatility, with many tokens posting double-digit losses.

PEPE, the meme token, is down 33% on the last trading day. While some believe the DDoS attack may be a temporary setback, which would end once the perpetrators run out of BTC, others are worried that it could be a sign of a larger trend of increased cyberattacks on the blockchain.

BRC-20 token creations.

Shitcoins on #bitcoin is here.

Everything is good for bitcoin. We knew high transactions fees were coming, but now we need to figure out a way to navigate this.

Good thing is they will eventually run out of bitcoin by doing this.

— Chris Alaimo (@ChrisAlaimo6) May 6, 2023

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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