Hedera Hashgraph (HBAR), IBM and Boeing backed cryptocurrency project, downed over 70% since launch

A week ago, Twitter user Scams_alarms reported that 4 of the 13 nodes of the Hedera council went offline without any explanation. Along with these incidents, just over three months after its launch, the Hedera Hashgraph (HBAR) project backed by IBM and Boeing fell 71% from opening around 4 cents on the dollar.

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Hedera Hashgraph Council Nodes | Source: Dragonglass

There is a high degree of centralization in the governing council of Hedera Hashgraph

The 4 of Hedera’s council 13 nodes were practically offline when 500 million HBAR was unlocked on December 31, 2019.

This is entirely unexpected news because Hedera has made great promises. For example, Hedera was introduced as a Blockchain capable of processing 10,000 transactions per second. Therefore, when these four nodes are reported offline, it is a shock to the community.

However, Zenobia Godschalk, Senior Vice President of Communications, rejected this news:

“It is not true that four of the nodes malfunctioned. We have seen third party reporting sites reporting various things, but it also appears some folks are on vacation, so documented hard to say when they were accurate.”

However, the daily value described in 340 thousand transactions is only about $ 0.25. It shows the lack of profits or any profits for the board members at that time. Therefore, the doubts about focusing around it are huge.

Other network issues

The utility of the Hashgraph platform is similar to Ethereum [ETH] and claims to support more than 10,000 transactions per second compared to 12+ of ETH. However, the network effect in the range seems to be lacking significantly. However, it may be a bit early to evaluate the network with the launch of the leading network after only three months.

There are other issues of focus yet as well. Problems have also arisen in connection with the company’s Simple Agreement for Future Tokens (SAFT), investment contracts provided by cryptocurrency developers to investors.

Scams_alarms reports that due to price mismatch in SAFT 1, 2, 3a, & 3b, the price of each token is overblown. Relevant, it warns users that SAFT 1 buyers are likely to send millions to Binance to dump.

Later, Hedera CEO and Co-founder Mance Harmon, stated that from December 23 and December 28, they would try to resolve SAFT and employee money.

Another noteworthy point about the project is the Hedera Board of Directors – who controls and secures the network – including industry heavyweights like Boeing and Deutsche Telekom. Because of this, there seem to be concerns about the lack of true decentralization for the sake of scalability and security.

The team also faced allegations of community bullying and not allowing the Hedera logo to be used. For Bitcoin enthusiasts, the refusal to use the community logo highlights the need for a truly decentralized cryptocurrency platform.

According to Scams_alarms, chasker, who according to his Twitter bio “work[s] for Hedera”, asked the community not to use the official Hedera logo.

Regarding the use of Hedera logo, Zenobia Godschalk, Senior Vice President of Communications, stated:

“Regarding the use of logos, it is precise that logos cannot be used for non-Hedera channels. This is to prevent people from being scammed into thinking that those channels are providing information from Hedera.”

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Zenobia Godschalk, Senior Vice President of Communications

Hedera Hashgraph launched Blockchain in September after a long period of testing. According to the company, Blockchain is capable of processing 10,000 transactions per second, compared to 15 transactions for Ethereum and 2.8 for Bitcoin Blockchain.

Last year, the company raised more than $ 124 million in three token sales for accredited investors only. The company began distributing tokens last September and allocated more than 1.4 million HBAR to investors.

At press time, about a week after the incident mentioned above, the price of Hedera Hashgraph (HBAR) is still not favorable. HBAR is trading around $ 0.011, down nearly 5% in the last 24 hours.

 

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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