How Axion Network Recovered From Day-One Hack and Regained Investor Confidence
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The introduction of Axion ushered in a revolutionary phase for investors looking for crypto-powered investment channels with stable returns alongside less risk of losses. In the first hours of launch, it emerged that the system was under attack. In the aftermath of the attack, the token's price dropped by 99%, with the attackers having stolen over $500,000. However, the team reacted positively to restore confidence in the Axion community.
What Is Axion?
The Axion Network is a cryptocurrency investment platform meant for income centered investors. The token leverages smart contracts to offer predictable returns to investors based on a scenario with similarities to the traditional certificates of deposit. Axion brings new capital through daily auctions, alongside a buyback plan that builds stability and reliable inflation for stakeholders. Token infrastructure also has penalties for investors who unstake before achieving the initially agreed date of maturity. Investors who do not divest when their staking period ends are also penalized. In general, the network structure is set up to penalize unexpected sales with the potential of damaging Axion's value.
What Happened During The Axion Hack?
On November 2, 2020, during the official launch of the Axion Network's AXN, the system suffered an attack after infiltration by an unauthorized code. Before the AXN launch, a presale token dubbed HEX2T was already available in the market. The token had attracted more than 10,000 holders who contributed to the assets market capitalization of over $100 million. With the launch, all holders could exchange their HEX2T on a 1:1 basis for the newly launched AXN.
Axion contracted Hacken and CertiK to review the token for uninterrupted launch. The two auditors are trusted by big players like IBM, Bitmain, Crypto.com, and Binance. Moments after the launch, AXN prices began dropping drastically, and it emerged that an unauthorized party had unloaded 79 billion AXN tokens in the market, with token prices falling by 99%. The hacker earned 1300 ETH, equivalent to $500,000 during the period. However, Axion managed to control the incident, and stakeholders were informed on the right steps to take amid the hack. Investors were advised through constant updates.
The hacker is believed to be a sub-contractor named Ilya Maximovich Solovyanov. The individual was working with Rock'n'Block. The attacker failed to cooperate with authorities seeking to resolve the matter. Notably, the Rock'n'Block team had been contracted to ensure the AXN launch went on without significant hitches.
How Axion Managed To Relaunch AXN Token
Following the initial launch setback, the entire Axion Network team regained control of the system. After an audit of the hack, the Axion Network team filed a criminal report with local authorities to recover the stolen funds. As a short term solution, Axion called on investors not to trade or withdraw AXN until further communication.
With the launch, the tokens were airdropped in the investor's wallets automatically. The airdrop finished after about two days. In a bid to establish stability, the Axion team conducted a fundraiser and used 20% of the ETH auction fee for injecting liquidity into the Axion Network. The community rallied around Axion’s relaunch and helped raise more funds than what was stolen.
It is worth mentioning that CertiK and Hacken have played a key role in restoring the regular network operation. Notably, the two auditors are instrumental in ensuring investors' interest in Axion is of high priority. With the introduction of better security measures, the AXN token was successfully launched on November 11. With the security breach, investors reacted by selling their tokens. Axion offered them new AXN tokens at a 1:1 ratio. After the hack, all investors who purchased AXN were compensated in AXN, at the price of $0.00025 per AXN.
Axion all resolved to onboard a team of community developers for more oversight purposes. The Axion team sought the services of CertiK to assist with the onboarding process.
With the launch, the tokens were airdropped in the investor's wallets automatically. The airdrop finished after about two days. In a bid to establish stability, the Axion team conducted a fundraiser and used 20% of the ETH auction fee for injecting liquidity into circulation. The fundraiser replaced what had been stolen during the hack.
Following the improved security measures, Axion relaunch went smoothly, with investors staking over 124 billion in AXN, evidence of high trust in the Axion community network. Notably, Axion was built with long-term stability in mind and with massive potential for future growth. In general, the Axion community has responded with positive feedback following the relaunch. The Axion team has managed to build trust among investors.
Axion's Future Plans After Launch Setback
Axion is on track to revolutionize how stakeholders invest in cryptocurrencies. Axion back on track after the launch setback. The team is now focusing on realizing the whitepaper has been rolled out as planned.
In January 2021, Axion is scheduled to make it easier for investors by enabling stakeholders to use a credit card that is linked to their crypto accounts. With the feature, Axion investors can carry out transactions just like through the regular bank. The partnership with Connect is an indication that the Axion team is ready to move forward and solidify the project despite the initial roadblock.
The Bottom Line
With just a few months in the market, the Axion Network is built for long-term investors. The asset is now a pioneer that will link the cryptocurrency world to the traditional finance market. Axion's ability to immediately rebuild from the hack is proof that the team has investor interest at heart.
With great rates of return, Axion offers a unique crypto investing breakthrough. With the cryptocurrency market suffering regular price volatility, the Axion team has established its network infrastructure to eliminate big price fluctuations.