The founders and insiders of the decentralized blockchain-powered Internet of Things (IoT) platform Helium (HNT) have been accused of benefitting from the project at the cost of the network’s investors.
Forbes reported on September 23 that insiders, including workers, their family and friends, and early executives, have been connected to 30 wallets that mined at least 3.5 million HNT coins during the first three months of the platform’s introduction in 2019.
The report’s results, which were obtained in part through on-chain data, indicate that insider accounts had about half of all HNT coins in circulation at the time. Notably, insiders have mined a quarter of HNT coins within six months of the ICO’s inception.
Investors were expected to spend $500 on equipment resembling Wi-Fi routers that mined HNT as part of a passive income scheme outlined by Helium. Investors were assured that after the project’s success, the network’s profits would be distributed equally.
One of the devices was traced to the California residence of Amir Haleem, CEO of Helium. According to reports, the gadget mined 250,000 HNT in its first three months of operation. The wallet received 455,000 HNT through mining rewards, which was approximately $25 million at the pinnacle of HNT’s value.
Contrary to Helium’s basic idea of creating a democratized system under the label ‘People’s Network,’ the executive’s transactions violate this tenet. In addition, the insiders are accused of keeping a substantial amount of cash created during their earlier and most successful years.
The executives reportedly concealed their earnings from Helium Security Tokens (HST), which guarantee about one-third of every HNT to insiders. Interestingly, the insiders also used the token’s public allotment, leaving around 30% for the Helium community at the pinnacle of the asset’s value.
However, the community has complained about poor revenues and a longer duration that almost reached a tear for gadget delivery.
In addition, Helium has reportedly exaggerated the scope of its collaborations with Salesforce and the electric scooter-sharing company Lime. Interestingly, the businesses said that they do not use Helium. The inquiry concluded that the firm struggles to generate money.
Despite the criticism, Helium is already preparing to launch a second 5G-based initiative. Under the terms of the deal, Helium is cooperating with DISH and T-Mobile and will pay for network access.
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