Having established itself as a leading distributed ledger technology platform using the asynchronous Byzantine Fault Tolerance consensus algorithm, Hedera Hashgraph has announced that it has postponed the issuance of Hedera tokens with a view to bringing stability in the price of the digital assets which are currently plummeting on a continuous run.
According to the latest piece of information on the matter, the firm will be offering compensation to investors in lieu of the delay caused to them. The firm will hand over some additional tokens to the investors, along with the token amount prescribed in their sale agreement.
Mance Harmon, who works as the CEO and co-founder of Hedera Hashgraph stated that “Participating SAFT holders would receive additional allocations of coins, made on an annual basis, the cumulative sum of which, over time, would equal the value of their original principal investment, in exchange for stretching out the release schedule for their remaining coins.”
The tokens were traded off during the two initial coin offerings carried upon by the platform earlier. The two ICOs helped the firm to pool in a whopping amount of $110 million in its credit. However, the disbursement of tokens to the accredited investors witnessed a major downfall in the price value of the native HBAR tokens. Surprisingly, in September, when the tokens made their first appearance in the niche, the digital assets enjoyed a high trade value of 10.2127 cents. Soon with further release of tokens, the price plummets to nearly 90% of its debut price.
The Hedera Hashgraph team decided to delay the issuance of tokens to the investors with a view to halting the downward fluctuations of the coins, but to their horror, the decline failed to have any substantial effect on the price value as the token value continued to drop drastically even after the broadcasting of the news.
“The rate of adoption and demand for HBARs to use on the network has not been what we originally expected; however we are confident that the initiatives that the Council is undertaking will bring the Hedera network closer to achieving the goal,” quoted Mance.
Hedera Hashgraph boasts of strong support from the globally reputed firms, including IBM, Tata Communications Ltd., Magalu, DLA Piper, Deutsche Telekom AG, Nomura Holdings Inc., etc.