Conclusion: X-explore reports a sybil attack warning. The XEN Crypto project is suffering from large sybil attacks. The total number of sybil addresses is recognized 335K by us, and the sybil attacks are becoming increasingly severe. On October 12, around 80% of participating addresses are sybil addresses.
The project XEN Crypto founded by Jack Levin, who claims to be Google's 21st employee, has aroused a trendy topic in recent days. XEN project pioneering Proof of Participation mining mechanism has skyrocketed the single-digit gas fee on Ethereum to around 30 gwei. As of our analysis time (13:00 UTC on October 12), the total number of addresses participating in the XEN mint has reached 750,000.
**Domain：**Defi / Mint
**Community Updates：**Some KOLs revealed that an address can earn a maximum of 800 USD, and there is still chance for arbitrage. Some airdrop scientists have conducted sybil attacks on the project.
As of October 12, we have counted 335,000 sybil attack addresses, accounting for 45% of the total participating addresses. It can be seen that as time goes by, the proportion of econnoisseur has gradually increased, and till today (October 12, 2022) the proportion of econnoisseur has reached a peak at 80%.
The picture below shows the largest group using batch transfer tools, involving a total of 38K batch transfer addresses. There is a clear consistency in the behavior:
Same source of funds: the sources of funds all come from the address 0x8BC110Db7029197C3621bEA8092aB1996D5DD7BE
Same transfer method: funds are distributed in batches through the contract address of Disperse.app, and the distribution address can evenly distribute funds to multiple addresses in one transaction
From our perspective, the project is now sufferring and will continously suffer from the tremendous loss because of the sybil attacks. As long as there is a small profit margin to take advantage of, econnoisseur parties will still pour into XEN project.
Moreover, the sybil attack is the main reason that influences the plunge in the XEN coin price and even further forming a death spiral. That is why the XEN price fell by more than 95% in one day after the CEX exchange went listing.