The founders and insiders of Helium (HNT), a decentralized blockchain-powered platform for the Internet of Things (IoT), have been accused of benefitting from the project at the expense of others who invested in it.
According to a Forbes investigation released on September 23, insiders, including employees, their family and friends, and early executives, were linked to 30 wallets that mined at least 3.5 million of all HNT tokens during the first three months of the platform’s introduction in 2019.
According to the report, which was based in part on on-chain data, insider accounts accounted for over half of all HNT cryptocurrency in circulation at the time. Notably, insiders have mined a fifth of the HNT coins within six months of the introduction.
Investors were needed to pay $500 on equipment resembling Wi-Fi routers that would mine HNT in a passive income scheme under Helium’s concept. Investors were assured that once the initiative gained traction, the network’s profits would be shared by everybody.
Forbes discovered that insiders quietly accumulated a majority of the tokens earned at the start of the project after reviewing hundreds of leaked internal documents, transaction data, and interviews with five former employees of the $1.2 billion company, which boasted backing from Andreessen Horowitz and Tiger Global.
The company’s executive transactions go against Helium’s basic premise of creating a democratized system under the title of ‘People’s Network.’ Furthermore, the insiders are accused of keeping a large portion of the income created during their initial and most successful days.
In addition, the executives reportedly hid their earnings from Helium Security Tokens (HST), which guarantees around a third of every HNT to insiders. Interestingly, as the value crested, insiders also tapped into the token’s public allotment, leaving around 30% for the Helium community.
However, the community has grumbled about poor revenues and a longer than expected wait for the gadgets to arrive.
The current discoveries occurred only days after Helium announced its official transition from its proprietary blockchain to Solana, citing network scalability as the cause.
Helium is also under fire for allegedly inflating the significance of its collaborations, which include the one-of-a-kind Salesforce and the electric scooter-sharing platform Lime. Surprisingly, the corporations stated that they do not utilize Helium. The inquiry summarized the company’s status, stating that revenue generation is difficult.
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