Horizon state, a blockchain voting platform ceased its operation citing insolvency issues. It’s native cryptocurrency – Decision Token (HST) plunged by 50% as the announcement was made.
While not many crypto exchanges have listed the token, Bittrex and Upbit, are ones that did. The announcement was made earlier today.
Reportedly, the token dropped around two hours before the announcement suspecting insider trading. Moreover, the announcement was poorly managed as well, which favored some investors over others. Reportedly, the price dropped about 20% before the first instance on Telegram. By the time the news reached investors through Facebook – the token had already dropped by 40%.
The price of HST token at 16: 15 hours UTC on 19th August 2019 is $0.015. It touched an All-Time above $5.8 during the bubble of 2017.
An Exit Scam?
The announcement made by HST hasn’t given out details of the court case in Australia citing legal issues. Furthermore, the reason for the closure of the operations is the cost of the legal problem faced by the company.
While the company claims that “we can at least say that it has nothing to do with the business,” the business was the most affected area from their decision.
The company either has a court case to fight or an option “to reach a settlement is an eye-watering expense will see the business become insolvent, and ultimately force its closure.” Hence, it seems that the person involved in the case is likely guilty to some or a large extent. The Blockchain was gaining massive popularity in Australia and New-Zealand before its collapse.
The Horizon state website is down giving no updates to the issue. Moreover, no announcement has been made on Twitter as well. As the investors are getting the heat of the news, the selling volume on exchanges is massive. The Exchanges will probably be forced to delist the coins, as it slowly dies out of circulation.
As the ICOs are running out of money to operate their efforts, the market can expect more instances of these exit scams.
How many actual projects do you think will remain in the end or the ecosystem will thrive no matter what? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com