Axion token worth has seen a complete collapse simply hours after launching on Nov. 2.
The mission staff claims an unknown consumer minted and bought $500,000 value of AXN utilizing an exploit.
Axion is linked with the controversial HEX mission which many commentators view as a rip-off.
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Linked to the doubtless fraudulent HEX Challenge, Axion promised to be essentially the most worthwhile blockchain of its variety — but it surely didn’t ship. Regardless of claims that 5 completely different auditors cleared the code, an alleged exploit simply sunk the worth by 100%.
HEX Airdrop Axion Fails to Launch
Axion marketed itself as an funding automobile via which customers may stake forex for a set time frame in alternate for high-yield returns. The “time-lock” nature of the funding meant customers can be unable to entry funds whereas staking.
On Nov. 1, the Axion staff introduced an airdrop to the HEX neighborhood, providing prize cash to customers who agreed to inform HEX customers in regards to the airdrop.
In lower than 36 hours, $HEX holders and stakers will have the ability to freeclaim $AXN at a 1:1 ratio at https://t.co/TIkJDxWyo9!
Tag a #HEX holder beneath who you suppose ought to learn about this!
We’ll be freely giving 250,000 AXN to 4 individuals who RT and/or tag a hexican beneath pic.twitter.com/OX76JPTUpt
— Axion (@axion_network) November 1, 2020
On Nov 2, over 79 billion AXN tokens have been unexpectedly minted and bought, netting the attacker greater than 1,300 ETH value over $500,000 on the time of writing.
The worth of AXN instantly collapsed 100% from $0.00034079 to $0, in accordance with CoinGecko.
The above chart exhibits a 100% collapse in worth, occurring instantaneously after the 79 billion AXN sale. Supply: CoinGecko
The Axion staff acknowledged that this was as a consequence of an exploit within the code, which was allegedly audited by 5 separate auditors earlier than the mission’s mainnet, in accordance with the Axion web site.
The positioning lists Hacken and CertiK among the many auditors.
Axion claims the community code was audited by Hacken, CertiK, and “three unbiased auditors.” Supply: Axion
The mission’s web site is now offline, and the Axion Community staff has suggested customers to not purchase AXN.
Axion’s Ties With Controversial HEX Challenge
The primary AXN airdrop was made out there to HEX and HEX2T token holders, providing a 1:1 swap of both token for AXN.
HEX has been topic to controversy and skepticism since launch, with many likening its enterprise mannequin to that of Ponzi schemes like Bitconnect and OneCoin. Like Axion, HEX guarantees excessive returns for customers who lock their funds for set durations of time.
Half of the locked funds go to a single origin deal with. Although it’s unclear who controls this deal with, many point out that the founding father of HEX, Richard Coronary heart, is the only real proprietor. This opens up the potential for a significant exit rip-off.
Like HEX, Axion additionally guarantees constantly excessive returns and profitability, typically seen as a crimson flag within the crypto neighborhood.
HEX literature says the HEX token is “designed to extend in worth quicker than the rest in historical past.” On the identical time, Axion inspired customers to “Get pleasure from life dwelling off the curiosity!” and referred to as itself “essentially the most worthwhile blockchain CD (certificates of deposit).”
Claims like these are hallmarks of crypto scams as outlined by the SEC. The Axion and HEX enterprise mannequin depends on a continuing stream of latest buyers to fund payouts for subsequent buyers, that are additionally traits of Ponzi schemes.
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