Crypto Token HBAR Is Tanking and Hedera Hashgraph Is Looking for a Fix

In a little over two weeks, Hedera Hashgraph's HBAR cryptocurrency has dipped from a high of $0.36 cents to around $0.03 as of press time.

"We are thrilled with the technical performance of our platform," Hedera Hashgraph wrote in an amendment that was shared in the network's Telegram channel on Monday.

Hedera refused to comment for this story, saying the company does not speculate on HBAR prices.

Hedera noted in its post that the startup is working with Harvard-trained economists from consulting firm Prysm Group to re-evaluate the HBAR economic model.

In Hedera's most recent proposal for amending the distribution model for simple agreements for future tokens participants, Hedera has suggested that the subsequent SAFT distributions be quarterly rather than monthly, meaning that SAFT 1 and 2 holders would get their next distribution on Dec. 22 rather than Oct. 22.

The proposal requires agreement between Hedera and "The people holding a majority of the purchase amount for that SAFT series."

Hedera raised money for the project at a time when altcoins were riding a high speculative wave out of 2017, said Eric Wall, the former blockchain lead at Nasdaq-owned fintech vendor Cinnober.

While Hedera has put together a high-profile governing council - including IBM, Boeing, Deutsche Telekom, Tata, Nomura and bank tech vendor FIS - it has yet to demonstrate high-profile use cases for HBAR, Wall said.

Hedera isn't the only altcoin network that's adjusting its model either.

Hedera's Governing Council has also created a growth committee to look over funds set aside for incentive programs to accelerate adoption, and Hedera is scheduling one-on-one calls with stakeholders to educate them on the company's efforts.