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.

    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


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Bitwise Plans To Target Retail Investors With Its Crypto Index Fund

    Bitwise has revealed that plans are underway to allow the retail market to participate in its large-cap index service. According to CoinDesk, Bitwise is working...

    Binance's Educational Platform Opens Up Government Approved Office in Shanghai

    Binance, one of the most popular crypto exchanges in the crypto-verse which also has many subsidiaries including Binance Academy (a blockchain and crypto-centred educational...

    XRP Trying to Retrace Months of Underperformance But Remains in a “Corrective” Structure

    XRP is up 12.5% but could still jump another 23%, A clean break above $0.21 would be “very bullish” Ripple granted an exemption...

    23k BTC on CME Futures and 50k BTC in Options Expiring Today

    Bitcoin is currently down 0.05% in the past 24 hours trading around $6,640 after hitting $6,872 last night, yet again rejected at $7,000 level....

    Microsoft Files Patent To Mine Cryptocurrencies With Verified Body Activity Data

    Giant software manufacturer, Microsoft is seeking to capitalize on the new crypto hype. The firm is seeking to introduce its own cryptocurrency that will...

    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.