Helium Network’s $20M HNT Token Misallocated by Binance

Helium Network's $20M HNT Token Misallocated by Binance

The Google-backed startup crypto-fueled shared wi-fi community that pays individuals to host hotspots, Helium, is making headlines at present due to an accounting bug at Binance. The crypto alternate wrongly distributed practically 4.8 million HNT price roughly $20 million.

Helium community-run hotspots are rewarded with HNT tokens by way of the Proof-of-Coverage mechanism. While the MOBILE token is paid to Helium 5G infrastructure operators and lacks a liquid market or quotable value.

Binance mistakenly counted them each as HNT. Depositors who despatched MOBILE to Binance addresses obtained the equal quantity of extra priceless HNT.

The bug successfully allowed 4,829,043 MOBILE tokens to reap the benefits of Binance’s accounting system.

The occasion of HNT tokens being despatched rather than MOBILE was timed to coincide with an enormous sell-off of HNT tokens, which drove the worth down from the $7 vary to present ranges, round $4. Some customers rapidly profited from the tokens.

A spokesperson of the Helium Foundation stated that the group was knowledgeable by Binance on September 15 concerning the accounting error.

“We can confirm that this is not a chain issue and that this issue is isolated to Binance. To our knowledge, no other exchanges or third parties have been affected. We advise token holders to suspend HNT and MOBILE deposits on Binance until a comprehensive situation update is provided.”

Compiled by Coinbold

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