Blockchain company Hedera Hashgraph has urged its investors to wait longer for the delivery of their coins as the price of the HBAR tokens plunged significantly.
Addressing the investors, Mance Harmon, the cofounder and CEO of the platform, revealed a program under which HBAR token investors will receive more tokens than originally stipulated in a simple agreement for future tokens (SAFT) for delayed distribution.
“Participating SAFT holders would receive additional allocations of coins, made on an annual basis, the cumulative sum of which, over time, would equal the value of their original principal investment, in exchange for stretching out the release schedule for their remaining coins,” the CEO stated.
The announcement also detailed that the number of additional coins to be distributed would be equal to 10 percent of the firm’s annual revenue from treasury sales and transaction fees.
Steps in Building a Digital Transformation Strategy to Grow Your BusinessGo to article >>
A hyped blockchain project
The Texas-headquartered company launched its blockchain in September after a long test run. According to the company, the blockchain is capable of handling 10,000 transactions per second, compared to merely 15 transactions per second in Ethereum and 2.8 for Bitcoin’s blockchain.
Last year, the company raised over $124 million in three rounds of token sale open only to accredited investors. The company began distributing its tokens last September and allocated more than 1.4 million HBAR to investors.
Despite the impressive numbers, the value of its digital token tanked on the market. As seen on Coinmarketcap.com, the return on investment (RoI) on the token went down over 87 percent as a single HBAR token is trading at $0.015273, as of press time.
“Any current SAFT holder that chooses to participate will receive the full number of coins expected in their original SAFT agreement, but will agree to extend the distribution schedule for what remains of their original SAFT allocation by 25%. In exchange, Hedera will repay the full value of their original investment over time, in coins,” the CEO added.