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In just 2 hours after its launch on November 2, the Axion token has crumbled and caved in, citing reasons that an unknown mint user has sold $500,000 worth of AXN using an exploit.

Axion was airdropped to the HEX community before even the trading went live on Nov 2. As per the claims of the team, a bad element exploited the system taking the price down. 

Axion’s controversial linkage with HEX

Ever since the first AXN airdrop was provided to HEX and HEX2T token holders with a 1:1 token swap, the tables have turned for Axion. HEX, since its inception, has been associated with a lot of raised eyebrows and skepticism. Its business model has been equated to Ponzi schemes like BitConnect and OneCoin. HEX assures high returns for those users who lock their funds for a fixed period of time. Out of these, half of the locked funds go to a single origin address and it is unclear who controls the address. This surely is a cause of concern when there is no transparency and sounds quite like a scam. 

Axion also promises like HEX that it will give its users a consistent pattern of high returns which is often viewed as a red flag in cryptocurrency circles. The HEX and Axion models get their acceleration from a pool of new investors and fund givers in order to fund payouts for previous investors, a trait observed in highly publicized scams. And now, despite being filtered by 5 layers of auditors, an exploit has just hit the system and tanked its price by 100%.

HEX Airdrop Axion fails miserably

On Nov 1 Axion made an announcement of an airdrop to the HEX community. The airdrop offered price money to users who would talk about the airdrop to HEX users. Axion even took to its official Twitter account to make the announcement. 

The next day, on November 2, 79 billion AXN tokens were minted and sold unawares and totally out of the blue. The attacker who did this managed to net more than 1300 ETH worth more than $500,000. As a result the price of AXN immediately took a blow and crippled its way down by 100% from $0.00034079 to $0 as per the data from CoinGecko.

Source: CoinGecko

The above chart shows an instantaneous collapse of the price by 100% after the unexpected minting and sale took place. The team at Axion believes that an exploit of the code led to this. 

As per the claims on its website, Axion is said to be audited by five separate auditors before its mainnet launch. Axion’s website is currently offline and the network has advised its users to refrain from buying any AXN.

Disclaimer

The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

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