When a Founder Becomes a Token’s Biggest Risk
HEX fell 30% after local outlets reported the arrest of its founder, Richard Schueler, in Istanbul. According to the original report, the incident occurred nearly two years after Interpol issued a “Red Notice.” The reaction is said to have wiped out around US$ 160 million in token value.
The case offers a lesson that goes beyond the performance of a single asset: projects that are too closely tied to their founders’ image carry additional risk. When reputation, communication, and trust depend on one person, legal or personal events can trigger sharp market movements, even without any immediate changes to the code.
It is also important to interpret the phrase “value wiped out” correctly. A drop in market capitalization does not necessarily mean that this amount of money was withdrawn. The figure is calculated by multiplying the token’s price by its supply. In markets with limited liquidity, a small number of trades can move the price and magnify the apparent change in total value.
Before evaluating any project, it is worth looking at token distribution, available liquidity, governance, reliance on key figures, and operational transparency. Smart contracts may be decentralized, but trust, promotion, and control can still remain concentrated.
Technology does not eliminate human risk. In many cases, it merely shifts it to less visible parts of the structure.
HEX fell 30% after local outlets reported the arrest of its founder, Richard Schueler, in Istanbul. According to the original report, the incident occurred nearly two years after Interpol issued a “Red Notice.” The reaction is said to have wiped out around US$ 160 million in token value.
The case offers a lesson that goes beyond the performance of a single asset: projects that are too closely tied to their founders’ image carry additional risk. When reputation, communication, and trust depend on one person, legal or personal events can trigger sharp market movements, even without any immediate changes to the code.
It is also important to interpret the phrase “value wiped out” correctly. A drop in market capitalization does not necessarily mean that this amount of money was withdrawn. The figure is calculated by multiplying the token’s price by its supply. In markets with limited liquidity, a small number of trades can move the price and magnify the apparent change in total value.
Before evaluating any project, it is worth looking at token distribution, available liquidity, governance, reliance on key figures, and operational transparency. Smart contracts may be decentralized, but trust, promotion, and control can still remain concentrated.
Technology does not eliminate human risk. In many cases, it merely shifts it to less visible parts of the structure.