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 Icobakercoindesk)

Hedera Hashgraph Icobakercoindesk: The ICO of the much-hyped Hedera Hashgraph has been over for a little over a month now, and the company has been struggling to find traction. In an effort to help stabilize their cratering price, the company is asking investors to wait for their tokens for five percent longer than promised. This will help them support their token price by taking advantage of arbitrage opportunities that surface when there isn’t enough volume available at a certain exchange.

The company has been struggling to find traction

Hedera Hashgraph raised $100 million USD from investors during their ICO period. Its token price started out strong and remained so for a good month or so, but it has since crashed. The same patterns are visible in the charts of its competitors as well. This is partially due to regulatory issues hampering public trading of tokens and partly due to less than stellar adoption by developers.

Hedera is an extension of the Hashgraph technology. This technology was developed as a consensus algorithm for distributed ledger systems and has been hailed for its performance by one of the most well-known cryptocurrency experts, Andreas Antonopoulos. Their ICO was held in January 2018 and the company did not accept US investors due to SEC regulations governing token sales.

Hedera recently started allowing public trading of its HED utility tokens, but the crypto markets have been down for some time now. Also, the fact that it is not possible to exchange HED tokens on large exchanges like Binance and Bithumb doesn’t help much either. The only venue to trade them is KuCoin, a small exchange based in Hong Kong. HED token is ranked 131 on Coinmarketcap, with a daily volume of just $1.5 million.

Placing HED tokens in cold storage

In an effort to help stabilize the price of their utility tokens, the company has announced that it will buy back and burn its own tokens. The company has currently placed all its tokens in cold storage and has not sold any yet. When investors reach the end of their lock-in period, the company will send them their tokens to whichever wallet they choose.

The company has stated that it is interested in making their buyback happen via the profits it earned from its ICO, which were about $20 million USD. Its projected profit for the year is about $100–300,000 USD. The company is also working on implementing their protocol in a number of projects.

Why five percent longer?

Hedera Hashgraph’s roadmap show that it has future plans to construct more public nodes for its network and make them available globally sooner than originally planned. The company is also planning to incorporate its Hedera Hashgraph technology into products from existing companies. However, this means that the company will be buying back a lot of the HED tokens it has already sold.

In accordance with its roadmap, the company has been selling HED tokens for $0.19 USD each. The five-percent longer lock-in period is to allow investors from other exchanges to buy HED tokens at a cheaper price. The company will buy them for an average of $0.18 USD and sell the to investors for $0.19 USD, which allows them to capture a few arbitrage opportunities as well.

The company is currently trading at $0.14 USD, down from its ICO price of $0.31 USD. With all the bad press surrounding it, – ranging from a feud with the Stellar Foundation to an apparent lack of product in development – Hedera will have to work hard for this token to gain traction. The new five-percent extension given to investors should help them regain some confidence and could stabilize the token’s price slightly.