Axion’s HEX token which was airdropped to the community before trading went live yesterday but the token crashed by 100% as the team claimed a bad actor used an exploit minting and selling the tokens at will, thus tanking the price as we can see in today’s altcoin news.
The Axion token value has collapsed entirely hours after launching. The project team claims an unknown use minted and sold $500,000 worth of AXN using an exploit. Axion is linked with the controversial HEX project that many saw it as a scam. Linked to the HEX project, Axion promised to be the most profitable blockchain but it failed to deliver. Despite the claims that five auditors cleared the code, an exploit has just crashed the price by 100%.
Tag a #HEX holder below who you think should know about this!
We’ll be giving away 250,000 AXN to four people who RT and/or tag a hexican below pic.twitter.com/OX76JPTUpt
— Axion (@axion_network) November 1, 2020
Axion’s HEX marketed itself as an investment vehicle to which users were able to stake currency for a set period of time in exchange for high-yield returns. The “time-lock” nature of the investment meant that users will be unable to access funds while staking. The Axion team announced the airdrop on November 1 offering prize money to users that agreed to tell HEX users about the airdrop.
On November 2, more than 79 billion AXN tokens were unexpectedly minted and sold which netted the attacker more than 1,300 ETH that is worth more than $500,000 at the time of writing. The price of AXN collapsed in an instant by 100% according to the data from CoinGecko. The Axion team stated that this was due to an exploit in the code, which allegedly audited by five separate auditors before the project’s mainnet according to the Axion website. The site listed Hacken and CErtiK among the auditors. The project’s website is now offline and the Network team advised users not to buy AXN.
The first AXN airdrop was made available to HEX and HEX2T token holders offering a 1:1 swap of either token for AXN. HEX was subject to controversy since its launch with many likening its business model that of Ponzi schemes like OneCoin and BitConnect. Like Axion HEX promises high returns for users who lock their funds for the said period of time. Half of the locked funds go to a single origin address but it is unclear who controls the address while many indicated that the founder of HEX, Richard Heart is the sole owner. This opens up the chances of a major exit scam.
Axion also promises high returns and profitability often seen viewed as a red flag in the crypto community. According to the literature of the project, HEX is designed to increase in value much faster than anything else in history but encouraged users to “enjoy life living off the interest.” The platform also called itself the “most profitable blockchain CD.”
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