Beaxy, the exchange that was promoted by some of the biggest influencers in the crypto space, has been forced to deny that their CEO Artak Hamazaspyan has abandoned the project after a tumultuous four months that has seen the exchange hacked and, according to some accounts, rendered insolvent. Despite the denital, the rumors have seen the exchange’s native XY token which drop 62% in just three days in a sign that there could be deeper problems at hand.
Damn, I hope not too many guys lost money over this. They were annoying shilling in many of my tweets. Felt very fishy indeed.
Gut instinct is rarely wrong.
— CZ Binance (@cz_binance) October 3, 2019
Beaxy’s Terrible Start
Beaxy launched in June amid a flurry of hype and promotion, boasting of their implementation of market leading OneTick analytics among other aspects. Confidence in the platform, which took two years to come to market, was badly shaken just two months after launch however when it was revealed that the exchange lost ₿44 and 111,000 XRP worth $570,000 to hackers via an exploit that had been used on 59 other exchanges. The writer who broke the story of the hack, John Galt, called Beaxy “incompetent” in their approach to the lead up and aftermath of the attack, revealing that the funds in the Beaxy cold wallets were also rapidly depleting, suggesting they might already be insolvent. Beaxy’s poor handling of the event just led to more questions being asked of the exchange, and Hamazaspyan’s sudden absence from social media has only kicked the rumor mill into a higher gear:
Fwiw, I don’t fuck with Beaxy anymore. That team is fucking clueless when it comes to interfacing with the public and having a business plan. Their marketing is garbage too.
They have a great exchange, it just needs MMs, which they seem incapable of onboarding. They mean well.
— ? SHILL GATES ? (@ImShillGates) October 4, 2019
The furore led to Beaxy having to clarify matters with a tweet yesterday:
Rumors that our CEO @just_artak has disappeared are false and represent attacks on Beaxy. He simply missed a panel due to family emergency. He has addressed our community directly already and will continue giving updates. We’ve been hard at work on features & liquidity you want!
— Beaxy (@BeaxyExchange) October 3, 2019
Beaxy’s Response Fails to Reignite Faith
Beaxy’s response didn’t do much to quell the rising tide of concern, possibly because family emergencies and ill health have unfortunately become something of a cliché in the crypto space and, for some, a red flag. With the vultures already circling it certainly wasn’t ideal timing for Hamazaspyan to take a leave of social media absence. Beaxy have put this down to a family emergency, but that hasn’t stopped many making their minds up about the exchange:
it always starts like this, with something like a family emergency or some crap.
and then the true exit scam is revealed.
— Ellypsis (@Ellypsis2) October 3, 2019
Whatever the reason for Hamazaspyan’s absence, it’s pretty clear that he is needed back at Beaxy HQ to help steady the ship like a good CEO would do, otherwise things could get even uglier very quickly.
