Hedera Hashgraph, one of the prominent new projects for 2019, is in trouble again. Nodes have shut down without warning, suggesting the network may be more centralized than previously thought.
Hedera Hashgraph Node Shutdown Angers Community
The community noted 4 out of 10 council nodes shut down, signaling centralization. The closing of this number of nodes also practically turns Hedera Hashgraph into a centralized operation. In an open network, securing the ledger with just six nodes would allow Sybill attacks.
4 out of 10 council nodes of @hashgraph went offline without any explanation
Team is bullying community and not allowing the use of the logo. Dictatorship of a centralized shitcoin.@chasker Christian hasker
SAFT 1 purchaser sending millions to binance to dump $hbar $ftm pic.twitter.com/kmxrP9JY5M
— Scam Alarm (@Scams_alarms) December 30, 2019
Hedera Hashgraph has allowed the running of public nodes, but Council Nodes are the core of governance, deciding on software updates and network resources. The nodes are supposed to be ran by some of the biggest platforms of Hedera Hashgraph, including IBM, Boeing, and Deutsche Telekom, among others.
Hedera Hashgraph was one of the instant sensations in 2019, gaining an immediate listing on Binance. The project was also presented with a traditional business structure, and spearheaded by the figure of Mance Harmon, co-founder and CEO. The token sale included much public hype, but also large-scale buyers during a series of pre-sales.
HBAR Tokenomics Failed, Bagholders Left with Sinking Asset
Then, soon after its exchange debut, the HBAR token started unraveling. The asset is down another 9% in the past day alone, pressured by news of the node shutdown. HBAR is now at $0.011, on track to become a sub-penny token, after crashing from initial trading levels at $0.40.
What is worse, in the past months, HBAR may have been available to early buyers, who could dump the tokens. On December 31, another HBAR tranche was unlocked for early buyers – leaving retail token holders as reluctant bagholders. The Hedera Hashgraph project tried to stem the token price slide by essentially asking its smallest investors to take the hit. An offer was made for future rewards, if some of the ICO buyers held onto their pre-launch tokens, instead of receiving active HBAR.
In 2020, there are multiple dates of HBAR distribution expected, with the potential to tank the price further:
Info: #HederaHashgraph (#HBAR) distribution:Dec 22, 2019 – 1.41B (cause of price dump)Jan 22, 2020 – 1.54BFeb 22 – 1.68BMar 22 – 2.11BApr 22 – 2.25BMay 22 – 2.32BJune 22 – 2.69BJul 22 – 2.76BAug 22 – 2.83BSep 22 – 3.28BOct 22 – 3.35BNov 22 – 3.42BDec 22, 2020 – 3.79B
— Important Crypto News and Info (@MajorCryptoNews) December 23, 2019
The distributions coincide with almost immediate selling, causing the price to drop further with no stop in sight. Binance has turned into the chief source of liquidity, where HBAR are being liquidated.
Binance – BTC Market#HBAR – Unusual selling activity7.18 BTC in 2 minutes (12%)B: 0.00000183 (2.14%)A: 0.00000184 (2.13%)24H Vol: 68.03 BTCLast signal: 4 hours ago (4/7D)
— Whale Sniper (@Whale_Sniper) December 29, 2019
The Hedera Hashgraph project managed to become one of the big ICOs in 2019, managing to raise significant funds, as much as $100 million, despite the overall freeze of token sales. The community, however, soon discovered that the tech was not enough, and that tokenomics were skewed to insider buyers, turning other enthusiasts into crypto plebes taking the losses.
What do you think about the performance of Hedera Hashgraph? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @Whale_Sniper @MajorCryptoNews @Scams_Alarms The post appeared first on Bitcoinist.com.