Hedera Hashgraph’s transaction count slips by 90% as 4 council nodes go offline
As the year comes to an end, there are many projects in the ecosystem facing issues. Recently, IOTA faced an issue that prevented the network from processing transactions. As of 31 December, there are now reports of Hedera Hashgraph’s network facing an issue with their own nodes.
Hashgraph’s Council Nodes
A Twitter account, “Scam Alerts,” reported that 4 of Hashgraph’s council nodes were offline, vastly reducing the transaction count on the blockchain. Moreover, the price of the Hbar tokens has also taken a beating, drastically falling by 62% in 3 weeks.
4 out of 10 council nodes of @hashgraph went offline without any explanation
Team is bullying community and not allowing the use of the logo. Dictatorship of a centralized shitcoin.@chasker Christian hasker
— ?Scam Alarm ? (@Scams_alarms) December 30, 2019
DragonGlass, a third-party site that tracks the activity of nodes, showed 4 nodes, in particular, to be offline or malfunctioning. Nodes 10 through 13 were not processing transactions. However, according to a media outlet, Senior Vice President of Communications at Hashgraph, Zenobia Godschalk, stated that the “nodes did not malfunction” and that the “third party reporting sites reporting various things, but it also appears some folks are on vacation, so it’s hard to say when they’re accurate.”
The transactions, however, on the Hashgraph blockchain continued to tumble. As seen below, the transaction count went from a whopping 379,889 to 31,939, a 91% decrease. Additionally, the number of tokens exchanged went from 471.75 million Hbars  on 23 December to 19.885 million Hbars on 28 December. It is currently at 6.08 million Hbars.
Additionally, the price collapse was attributed to the dump by SAFT [Simple Agreement for Future Tokens] holders by the market. To make matters worse, an additional 540 million Hbar tokens are to be released into circulation. The release is said to be in line with the incentive program outlined in a recent blog by the founders.
Out of the 540 million tokens released, 80 million will be sold to a third party over time to cover the company’s tax withholding obligations for employee distributions.
According to the blog,
“The rate of adoption and demand for hbars to use on the network has not been what we originally expected… We are launching the following initiative in order to thank SAFT holders for their continued support. Beginning in early 2020, existing SAFT holders may choose to participate in a program that further incentivizes network usage and growth. Specifically, participating SAFT holders would receive additional allocations of coins…”
AMBCrypto has reached out to Hashgraph and Christian Hasker, Chief Marketing Officer at Hedera Hashgraph, and the article will be updated accordingly.