/
Navigation
Chronicles
Browse all articles
Explore
Semantic exploration
Research
Entity momentum
Nexus
Correlations & relationships
Story Arc
Topic evolution
Drift Map
Semantic trajectory animation
Posts
Analysis & commentary
Pulse API
Tech news intelligence API
Browse
Entities
Companies, people, products, technologies
Domains
Browse by publication source
Detection
Concept Search
Semantic similarity search
High Impact Stories
Top coverage by position
Sentiment Analysis
Positive/negative coverage
Anomaly Detection
Unusual coverage patterns
Analysis
Rivalry Report
Compare two entities head-to-head
Semantic Pivots
Narrative discontinuities
Crisis Response
Event recovery patterns
Connected
Search: /
Command: ⌘K
Embeddings: large
TEXXR

Chronicles

The story behind the story

← → days · ↑ ↓ browse · Enter similar · o open

Hedera Hashgraph, which has raised $100M+ in 2018 ICO, asks investors to wait longer for purchased tokens, to help stabilize their cratering price

Hedera Hashgraph, the company behind the blockchain-like Hedera network, is asking investors to wait longer for tokens they paid for, in order to stabilize their cratering price.

CoinDesk Paddy Baker

Context & Ripple Effects

Eighteen months after its $100M-plus private ICO, Hedera Hashgraph is asking the people who funded it to accept later delivery of the tokens they already paid for — a supply-side fix for a price that is cratering under sell pressure. The move lands on a project that sold itself on being faster and more secure than existing blockchains, but whose most urgent problem right now is its own token market.

The precedent is Bancor, whose token fell 56% after its ~$153M ICO and which was criticized for weak fundamentals beneath the raise (Bancor's post-ICO collapse). Hedera's request also fits the arc traced when ICO fundraising peaked in 2018 and projects, under rising regulatory scrutiny, shut out small investors in favor of private sales (the 2018 pivot to private sales) — concentrating holdings in fewer hands whose unlock timing now moves the whole price.

First-order effects

  • Investors from Hedera's 2018 raise have their token delivery pushed back, trading their liquidity for the project's price stability.
  • Hedera gains near-term selling pressure relief on HBAR, but converts a market problem into a credibility promise it must keep with its largest backers.

Second-order effects

  • Other 2017-18 vintage ICO projects sitting on similar unlock overhangs face pressure to follow with their own vesting extensions rather than let scheduled releases hit thin markets.
  • Future private-sale buyers will price in delivery-delay risk, demanding longer lockups or discounts upfront — raising the effective cost of capital for the next ledger project.

Third-order effects

  • If delayed-delivery requests become routine, ICO-era purchase agreements effectively become negotiable after the fact, inviting exactly the regulatory scrutiny that already pushed fundraising into private sales.
  • The structural lesson echoes Bancor: a large raise does not create durable value, and projects that manage token supply instead of shipping claimed performance advantages risk joining the list of big-ICO cautionary tales.

The trend: Post-ICO token management — lockups, delayed delivery, vesting tweaks — is becoming the main lever by which 2017-18 vintage crypto projects defend prices, at growing cost to investor trust and regulatory goodwill.

Discussion

  • @imbagsy Bagsy Balthazar on x
    That's definitely going to stop the bleeding. $HBAR https://twitter.com/...
  • @prestonjbyrne Preston Byrne on x
    Hashcrash: “[investors may] receive additional coins, made on an annual basis... which, over time, would equal the value of their original principal investment, in exchange for stretching out the release schedule for their remaining coins.” https://www.coindesk.com/...
  • @kwerb Kevin Werbach on x
    The ICO goldrush was the worst thing that happened to the blockchain economy. Even putting aside all the scams, for every Tezos that was supercharged by the funding, there are many Hederas and Algorands with great tech perverted by the allure of crypto cash. https://twitter.com/.…
  • @trengriffin Tren Griffin on x
    @Techmeme “Remain calm. All is well.” https://m.youtube.com/...
  • @dominikweil Dominik Weil on x
    ...and the fallout from the ICO craze around 2017 continues. These “token price protection” schemes sound worse than anything cooked up in your average central bank. And won't work neither ultimately to overpower the market forces. Play stupid games, win stupid prizes. https://tw…