Hedera Hashgraph (HBAR) Token Tanks by 90%, Startup Seeks to Pivot
The Hedera Hashgraph distributed model failed to support the value of the HBAR token, which suffered a sell-off on the open market.
Hedera Hashgraph (HBAR), a project that launched to much fanfare and was listed to multiple exchanges, is battling the biggest risk on the crypto markets - extreme volatility. HBAR has already lost more than 90% of its value, sinking from a peak of $0.36 down to $0.03.
HBAR is still in the price discovery stage, with no clearly calculated market cap, hovering among the most obscure coins and tokens. The price fell from 3,575 Satoshi, down to 440 Satoshi, with still no signs of recovery.
Despite the listings on Upbit and Binance, HBAR seems to be reeling from its first impact with crypto markets. Despite being headed by Harvard economists, the token still behaved like most newly launched hot assets, quickly spiking and crashing once selling started.
Mance Harman, CEO and co-founder of Hedera Hashgraph, already noted the asset’s poor performance at the end of September. In a recent blog posting, Harman explained the nature of Hedera Hashgraph’s economic system, while setting out to re-evaluate the token model as an incentive.
“While the value of the network will be driven by the applications that developers continue to bring to market on top of it, we were responsible for the creation of both the network and the economic model to catalyze that development. If we find mistakes in either, it is our responsibility to fix them,” suggested Harman.
However, despite the high network activity, with distributed apps and a constant flow of 3-4 transactions per second, the token’s price trends lower.
One of the reasons is the still slim market for HBAR, with around $6 million in volumes in a single day. The low volumes allow for easier price slippage. The project will have to keep fighting for acceptance, if the price is to budge.
The price action of HBAR recalls that of TRON (TRX), which despite active usage, remains depressed, with no signs of recovering to a higher level.
Hedera Hashgraph also launched with immediate acceptance, not unlike Algorand (ALGO). But ALGO also went on to wipe out most of its initial price. ALGO fell to current lows of $0.22, down from a peak above $3.