NEW: Fantom-based stablecoin project Hector Network voted to liquidate what’s left of its treasury, which suffered major losses related to Multichain’s collapse. realDannyNelson reports
Since July 6, Hector’s HEC token has lost 60% of its value; its TOR stablecoin is trading at 13 cents. The treasury may have suffered an $8 million loss due to Multichain-linked stablecoins losing their pegs, according to one investor estimate.
“Hector Network has suffered significant damage to its ability to operate,” a community manager with the screen name MayoMyke wrote in the project’s Discord on July 14.: liquidate and distribute the treasury’s remaining assets or migrate to a different blockchain, rebrand and rebuild. They soundly rejected the migration plan in a lopsided vote that ended Monday.
Hector now plans to redistribute the proceeds of its treasury to HEC holders proportionally and based on their positions as of July 14. The final amount distributed could be lower than $16 million, as “all contractual, statutory and other legal obligations, including costs of the liquidation, must be fully settled” first, according to the plan.with demands to return part of its once sizable treasury to token holders disaffected with the project’s direction.
“The mistakes were too many – its scales too large,” said community member BeNOridas, who is not affiliated with the activist investors.in late May that issues at Multichain could impact the project. But confirmations the bridge’s CEO was arrested in China and the unexplained transfers of $130 million in assets decimated confidence in Fantom’s stablecoin market, which largely relied on Multichain.
It’s not yet clear how Hector Network will conduct its liquidation and redemption program, or whether it has a plan to deal with unclaimed assets. Project leadership did not respond to a request for comment.
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