High-Performance Blockchain (HPB) Exit Scam Reports Surface After New Governance System Controversy

HPB (High Performance Blockchain) announces changes to governance protocol as many suspect it to be an exit scam in the making despite having a $5 million market cap.

High-Performance Blockchain (HPB) with a market cap of $5 million recently announced a new decentralized governance system on its network, where the community members would have a larger say in the governance process.

HPB is currently listed on a handful of exchanges including the likes of OKEx and KuCoin. The company claimed that the decision was made to move from a centralized form of governance.

The firm released a statement saying,

“To better facilitate the long-term development of the HPB, the core team opened the road to organizational transformation and community governance in October.’

Although the official statement stated that the change is only to make the system more community-driven, the company's managing director, Danny R suggested otherwise. He stated that things are complex internally and the decision was only made because the co-founders have decided to abandon the project. He went on to reveal that the governance restructure was done solely by the company's Founder and CEO Xiaoming Wang.

Wang claimed that he is stepping down because the firm he founded is,

“no longer aligned with the organization’s strategy, use of funding, and manner of conduct.”

Danny also revealed that apart from the CEO, three other co-founders and almost half of the employees at HPB is abandoning the project. Even though these employees were offered to contribute to the project by becoming a community contributor all of them declined.

The revelations about co-founders abandoning the project also hampered the market value of the HPB project, where the token lost 50% of its market value. Many now are claiming that the change of governance model is only an exit scam.

HPB raised $2 million last year in an ICO, and like many other failed stories from the ICO era, it seems HPB will also turn out to be an exit scam. A recent study has found that 80% of the projects which raised money through ICO failed to deliver on their promise. Thus, the latest example of HPB must be an alarming Bell for both the customers and investors as well as regulators to closely monitor such projects with the potential to scam people of their hard-earned money.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
James W
James is a cryptocurrency enthusiast, an advocate for the development and exposure of blockchain technology, and believes in the use of digital assets for the good of the society. Enthralled by the huge potential of cryptocurrencies and their underlying technology – blockchain – James dedicated himself to learn more about the industry, becoming a highly sought-after writer in the sector. He covers news, white papers and any content related to cryptocurrency and blockchain in general.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,230FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Compound Protocol to Roll Out Decentralized Oracles Dubbed ‘Open Price Feed'

Compound, one of the most popular defi protocol, is all set to introduce open price feeds for lending on its platform using a decentralized...

$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%. It all...

Irish Govt to Target Cryptocurrencies Use in Money Laundering And Terror Financing

The Irish government aims to implement stricter and more stringent laws to curb money laundering and terrorism financing in its financial system, including digital...

Interactive Brokers to Settle $38 Million in Penalties for Violating AML Procedures

Interactive Brokers LLC, a U.S based brokerage that skyrocketed between 2013 and 2018, has agreed to settle a total of $38 million with the...

Ethereum Gas Price Hasn’t Been This High Since its Launch

The price of Ether is back to making its way to $400 level as it hovers around $391 in the green with just $840...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today