Australia-based Crypto Start-up Power Ledger Faces Criticism for Gratifying Hackers

Power Ledger, an Australia blockchain based on peer-to-peer electricity trading start-up, has received criticism for gratifying many hackers who were using illegal means to generate interest for its crypto token.

As per the report by Financial Review, Power Ledger has been disparaged for issuing tokens free of cost to all those bounty hunters who were involved in making overstated or fake claims concerning the start-up with an intention to enhance the acceptability of the Australian crypto firm’s tokens.

Out of the few false claims made, one of those was that the start-up had drawn the interest of the renowned clean energy advocate and billionaire, Elon Musk, who is the founder of Tesla, and who was enthusiastic towards revolutionizing the retail electricity sector.

At present, Power Ledger’s token, POWR, is trading approximately 20% below its issue price with a market cap of above US$30 million.

Who’s Fault?

Though Power Ledger did not deny using the services of the Bounty Hunters, it protected itself by stating that the bounty hunters were used by the start-up to help them create “grassroots support for the currency sale.” It also stated that around 1.5 million tokens were kept separately only for the bounty hunters.

As per the statement of Dr. Jemma Green, the Chairman and Co-founder of Power Ledger, the company had no means of overlooking the activities of the bounty hunters. She stated, “Rewards were offered to community members to share our project with their own networks. The means by which they did so were outside of our control, and we made it clear that our core supporters who believed in the project and the future of renewable energy were the main audiences for this program.”

Such criticism issues related to Power Ledger have, however, not discouraged the P2P energy-trading start-up to achieve its mission. Earlier in this month, a trial run was conducted for trading solar power in the Australian coastal city of Fremantle on a blockchain platform, which was successful. This trail enabled around 40 houses in the coastal city to ascertain the purchase as well as sell price of renewable electricity produced on their rooftops.

Further, the Minister for Finance, Energy and Aboriginal Affairs in the government of Western Australia, Ben Wyatt, appreciated the project and mentioned the trail run a “world first” of its type. He stated that “The trial represents an innovative solution to virtual energy trading that may have implications for energy utilities working to balance energy supply and demand all over the world. These households are believed to be the first in the world to be taking part in an active, billed, peer-to-peer trading trial that allows them to effectively buy and sell solar energy generated by their rooftop system across the grid.”

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