ConsenSys CodeFi unable to handle SKALE’s ICO traffic, cancels auction

ConsenSys CodeFi unable to handle SKALE’s ICO traffic, cancels auction

CodeFi, a blockchain platform developed by ConsenSys, has canceled the auction of the SKL token due to increased traffic during SKALE Network’s ICO last week. The company decided to proactively cancel the auction and introduce a new process that will provide all qualified users with an equal and guaranteed allotment of SKALE tokens at a fixed price.

CodeFi cancels first token auction after a surge in traffic threatened to crash the platform

The SKALE Network saw a turbulent ICO last week when huge interest in the SKL token crashed the platform it was launched on.

SKL’s launch on ConsenSys’ CodeFi platform was announced on Jul. 20, with the company saying that its goal was to provide a vertically integrated platform that enables a robust network launch and on-going use of tokens.

SKL is the first token to launch on CodeFi. More than 10,000 users registered for the ICO and more than 5,000 of them were able to complete all steps of participation which included KYC, agreement to stake SKL for 90 days, and a quiz on SKL.

However, promises of CodeFi’s unprecedented performance fell short on Aug. 17 when the platform canceled the auction of SKL tokens. According to the company’s update, shortly before the scheduled auction, the system reported “overwhelming traffic and bot activity” that would have led to a launch that failed to meet the platform’s “standard of success.”

CodeFi explained that the platform would have provided “inconsistent user experiences”. None of the registered users were able to purchase SKL tokens.

10x more traffic turns an auction into an allotment

To avoid suffering from degraded performance, the company decided to act proactively and cancel the SKL auction before both the platform and the participants of the auction suffered any damage.

“We want to sincerely apologize to and reassure everyone who was impacted by our decision to postpone the SKALE Network auction on Monday.”

Despite the fact that the interest in the SKL auction was more than ten times the auction’s capacity, no tokens have been sold or distributed.

Nonetheless, the SKALE Network will see it’s token launched, just in a different capacity.

According to CodeFi, a new process will be launched and it will not include an auction. The company said that it will provide all qualified users with an equal and guaranteed allotment of SKL tokens at a fixed price. The maximum sale proceeds will remain unchanged, as the ultimate goal is to distribute the token to a broader user base, not accomplish a larger sale. The launch date and more detailed information about the upcoming process will be announced by CodeFi on Aug. 26.

The SKL token is a hybrid-use token that is used both to secure the SKALE Network and as a means of payment for SKALE chains. The SKALE Network was specifically designed to scale the Ethereum network by offering developers working on it faster transaction fees and lower fees. Each application using the network gets its own chain which the company claims is capable of executing over 2,000 transactions per second.

Update at 10:20 GMT on August 27, 2020.

CodeFi has revealed the terms of new allotments of SKL tokens where each eligible buyer will be allowed to purchase up to $1,153 of SKL tokens.

Posted In: Altcoins, Technology

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