Helium faces a major scandal following the dissemination of an investigation carried out about it. What blacken the reputation of a network that has been talked about lately.
Promises not kept by the project?
Over the past few weeks, Helium has stood out with its apparent interest in change. As the company seeks to grow on a simpler, more scalable blockchain, an investigation adds cloud to the picture.
Indeed, according to the newspaper Forbes, Helium would not be a totally neutral network. Although it was created for this purpose, things quickly went wrong within the community. In addition to wanting to provide an internet connection for connected objects, the company has also launched into crypto by offering its own token. This one, titled HNT, is currently used as a reward system. Each member of the community can mine through networked devices.
While customers see little profitability in this token system, some company employees would enjoy a whole other benefit. Indeed, these would be the holders of the vast majority of tokens while benefiting family and friends. Mining machines would therefore be multiplied within the same family. According to Forbes, around 30 crypto wallets belong to the employees’ entourage and collectively hold nearly 3.5 million tokens. Thus, the true Helium community would only receive 30% of all the yield generated annually.
Moreover, the insiders in question are said to have put in place plans to collectivize the network in order to take advantage of its signal and therefore generate rewards more quickly. So far, Helium’s management team has yet to respond to the accusations. However, according to co-founder Amir Haleem, the management team is in the process of fixing the problem so that such abuses are no longer possible. However, she would refuse to look for a person responsible.
Meanwhile, Helium prepares its migration to Solana
While the consequences of the Forbes investigation are still pending, the Helium project seems to be concentrating all its forces on its migration to Solana. The proposal had caused an uproar within the crypto sector, where many experts and entrepreneurs felt that it was not the best solution to develop the project. However, the community decided through a vote. Thus, more than 80% of users voted in favor of the migration.
For now, the date of operations has not yet been announced. The revelations of the Forbes newspaper should not have an impact on the event. Helium could nevertheless have to explain itself to its community.
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Helium Scandal: Project Employees Are Exploiting The Reward System To Their Advantage – BeinCrypto
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