Not long ago, Harmony – a crypto exchange based in Northern California – was the victim of a cyber attack that eventually led to the theft of more than $100 million in digital currency funds.
Harmony strives to return people’s money to people
The company has taken several measures to recover its money and improve the situation for its customers. Among its proposals is this latest offering that executives would like to issue nearly five billion new cryptocurrencies to any customers who may have lost their money or suffered at the hands of cyberthieves, though. People do not interact Well for this news.
The idea among many reactors is that by minting more coins, the price of the asset will go down in the toilet. Several point out that the company doesn’t seem to be learning any lessons from the US government lately, which apparently believes that printing more money is the answer to everything. In fact, this only led to the devaluation of the US dollar, and the country is now suffering from it Standard inflation.
Many traders are concerned that by issuing more tokens, Harmony will do more harm than good, and they have taken to social media to voice their concerns. One investor explained in an online message:
It boggles my mind that we not only lose money, [but] We also pay for ourselves via inflation. Don’t be ashamed guys to call this a “reimbursement proposal”.
A few weeks ago, Harmony featured two suggestions on its website for customers to consider. The first – known as Simple Rules Co. Includes full compensation for any customer losses by minting approximately five billion new tokens over three years. This will include the distribution of approximately 138 million new coins each month.
The second scenario would involve the release of approximately 2.5 billion new tokens over three years, with around 69 million tokens generated each month. The real problem with both plans is that the coins that are issued will be given a value of about two cents each, which is what they are worth now.
The price will ultimately not change during the three-year issuance period no matter what happens in the crypto space, which means that if the industry shows great promise, while the price of coins will rise naturally, investors will likely not see much return. The price will remain fixed.
Neither plan looks solid according to investors
Harmony explained on their site:
Our community is a critical component to Harmony’s success. The Harmony team has worked tirelessly to share ideas and develop pathways to compensate those affected by the recent hack.
Further investigation into the event suggests that it may have occurred at the hands of hackers in North Korea, a country constantly seeking to steal crypto funds for its nuclear program.
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