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Friday, September 30, 2022

Millions Of Unauthorised HBAR Transfers & New Partnership!

Hey guys welcome back to Crypto Clan, today we’ll be discussing recent news that hundreds of millions of hbar’s were moved by a third party without authorisation and new partnership developments. On the 24th of July, the official hedera hashgraph Twitter page tweeted the following. Hbars moved from 0.0.47994 were in an external restricted account. The third party moved them without notifying Hedera. The new account is now also an external restricted account.

The API was updated and 700M+ hbars were deducted from the circulating supply. From this tweet, it can be inferred that an external restricted account that has significant HBAR’s locked up, moved 700 million-plus HBAR’s from its account into an account with a different ID without authorisation from the Hedera team. Hedera has since restricted the new account, thus the 700 million HBAR’s which were moved will not be part of the total circulating supply of HBAR tokens.

Let’s take a deeper look to see what an external restricted account is. An external restricted account is Any account owned and/or managed, in whole or in part, by a party other than Hedera and containing hbars allocated for future purposes but not yet considered Circulating Supply. This may include accounts containing hbars allocated and bonded for future delivery, such as under the 2020 Coin Purchase Agreements, or held by parties other than Hedera yet are subject to restrictions on use.

Transfer of hbars out of these accounts occurs according to the terms of the applicable agreements. Hedera’s 2020 Coin Purchase Agreements scheme, involves Hedera aiming to raise additional funds to support ongoing operations by selling hbars to a small number of institutional purchasers, with coins to be delivered after a multi-year lockup period consistent with Hedera’s previously published coin release schedule.

There is currently a circulating supply of over 9 billion HBAR tokens at the time of recording, there is a maximum supply of 50 billion coins, of which, the remainder of the tokens are divided between a multitude of stakeholders which include the Hedera treasury, investors and external restricted accounts. According to Hedera’s Economic Whitepaper, which was published in June 2020, it is estimated that 17.03 billion HBAR’s are estimated to be in circulation by 2025, which is equivalent to 34% of the total supply of HBARs.

Despite the apparent worrisome nature of the number of HBAR tokens being moved by an entity or individual without permission, the hedera team were quick to respond to this situation. To be clear, the entity was allowed to move their HBAR’s into another account; however, Hedera should have been notified in advance, so the Hedera team could mark the new account on their list of restricted accounts.

Hedera’s prompt response to this situation whilst also providing a multitude of resources explaining the economics of the HBAR tokens such as how tokens are distributed amongst stakeholders and plans detailing how HBAR’s will be released over the long run will bring greater confidence to the hedera community.

However, it could be argued that the hedera team could provide further clarity and transparency in regards to who the external restricted accounts belong to and how many HBAR tokens these entities possess. In other news the NFT marketplace built on Hedera Hashgraph, VCCESS has partnered with the legendary rock group, The Grateful Dead, whereby, an NFT auction will be launched on July 23rd 2021 on VCCESS.com.

The event will see a variety of Grateful Dead physical memorabilia tokenized on Hedera and accessible on the VCCESS marketplace platform; available items include: * Yamaha guitar amplifier that Grateful Dead’s lead guitarist, Garcia used to warm-up with backstage (cigarette burns are still lingering on the wood paneling) * Ticket wheel from the band’s 1991 tour with original tickets and backstage passes.

The passes boast original artwork for each window. The VCCESS NFT marketplace adds to a growing list of NFT marketplaces, that includes, the social media NFT marketplace Calaxy and Animoca Brands which have decided to build their platform on Hedera’s consensus service.

NFT’s minted on Ethereum and other proof-of-work networks have been under scrutiny due to their consumption of energy. Concerned about the considerable carbon footprint caused by a typical NFT transaction, VCCESS sought to build their NFT marketplace on an environmentally conscious decentralized network, which case led to it building its platform on the Hedera hashgraph DLT network.

Hedera’s network currently requires 55,000 times less energy per transaction than Ethereum and 250,000 times less energy than Bitcoin. In response to this partnership, the CEO and president of VCCESS, Dil- Domine Leonares stated, “We choose to operate on Hedera Hashgraph due to multiple factors that included being a layer 1 proof-of-stake public ledger that had less environmental impact than the Ethereum network.”

“We’re excited about the opportunities operating on Hedera will have for our startup that is ushering the new wave of fandom bridging the physical world with the digital metaverse.”What are your thoughts on today’s news headlines? Do you think Hedera should provide further details in regards to who controls the external restricted accounts? Let us know your views in the comments below.

Read More: Hedera Hashgraph Will Stop Cyber Attacks

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