- Axion token value has seen a total collapse just hours after launching on Nov. 2.
- The project team claims an unknown user minted and sold $500,000 worth of AXN using an exploit.
- Axion is linked with the controversial HEX project which many commentators view as a scam.
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Linked to the potentially fraudulent HEX Project, Axion promised to be the most profitable blockchain of its kind — but it didn’t deliver. Despite claims that five different auditors cleared the code, an alleged exploit just sunk the price by 100%.
HEX Airdrop Axion Fails to Launch
Axion marketed itself as an investment vehicle through which users could stake currency for a set period of time in exchange for high-yield returns. The “time-lock” nature of the investment meant users would be unable to access funds while staking.
On Nov. 1, the Axion team announced an airdrop to the HEX community, offering prize money to users who agreed to tell HEX users about the airdrop.
Tag a #HEX holder below who you think should know about this!
We’ll be giving away 250,000 AXN to four people who RT and/or tag a hexican below pic.twitter.com/OX76JPTUpt
— Axion (@axion_network) November 1, 2020
On Nov 2, over 79 billion AXN tokens were unexpectedly minted and sold, netting the attacker more than 1,300 ETH worth over $500,000 at the time of writing.
The price of AXN immediately collapsed 100% from $0.00034079 to $0, according to CoinGecko.
The Axion team stated that this was due to an exploit in the code, which was allegedly audited by five separate auditors before the project’s mainnet, according to the Axion website.
The site lists Hacken and CertiK among the auditors.