HEX, the controversial token that acts as a certificate of deposit and has nothing to back itself other than its supposed ability to go up in price, has done the exact opposite and handed initial investors an 87% loss straight out of the gate. The token, which is “designed to do over 10,000x returns in under 2.5 years”, will now have to perform even more of a miracle if it wants to enrich its investors in the manner promised, as opposed to enriching its creator Richard Heart, which it has already done.
— Rhett Cryptography [#800cc] (@HeyRhett) December 7, 2019
HEX Casts a Spell over Investors
The HEX token sale raised some $3 million for the “blockchain thought leader” as investors flocked to send in their ETH in order to enjoy the thousands of percent they have been promised by the platform, only to see the value of their holdings plummet upon listing on the Bidesk exchange, from the average ICO price of $0.0016 to $0.0002 in a matter of hours. The concept has received a barrage of criticism, not helped by its marketing – the entire focus of the HEX website is about how much money investors can make, which is dodgy enough in itself, but when you factor in claims such as the token’s ability to reach dizzying heights of valuation due to “a computer science breakthrough” which will “disrupt the largest markets in the world with a product of nearly infinite profit margin”, you really have to wonder how Heart is getting away with it.
1/ A short thread on $HEX, stupidity, and greed.$HEX is the latest useless ERC20 token. Its ongoing token sale has raised about $3 million in $ETH. Its only purpose is to hopefully go up in value by attracting new suckers.
— Alex Krüger (@krugermacro) December 5, 2019
HEX is “An Egregious Scam”
Amid all the shorthand negativity on Twitter, Medium writer Goldman Sats took to the longform platform to offer a more in-depth look at the problems with HEX. In it he describes how Heart is careful to state how investors have not ‘bought’ the HEX token, but have instead “donated” it to the platform where it is “transformed” into HEX. Hmmm. He also takes a deep dive into the fancy buzzwords that abound on the website, which include the ‘Origin Address’ and the ‘Adoption Amplifier’. His summary is that Heart could make something in the region of $100 million in ETH (at current prices) and that he gives himself almost half of all the HEX tokens created through the various elements he has included in the platform. The scheme is variously described as “an elaborate magic trick”, “an egregious scam”, and being “designed for one thing only: to enrich Richard Heart himself”.
HEX Rolls Out Its Defenses
Heart has some
well paid staunch defenders of his token, some of whom have taken an extremely aggressive tone to their defense of the platform:
Provide your best arguments as to why $HEX is a scam.
I am in the mood to annihilate some of you especially those who are so vocal and yet know absolutely fucking nothing.
— Gunther von Harringa (@Gunther_vH) December 6, 2019
HEX themselves had a go at reassuring early investors by throwing out some stats about the initial phase, without seeming to realize that the opening line was about the worst thing they could have said, short of admitting that the project was a scam:
— HEX (@HEXcrypto) December 7, 2019
One investor got himself a bit confused while questioning the reason why the project was getting so much kickback, without realizing the irony of his incorrect correction:
— JB (@JimmyBenjamin36) December 8, 2019
To anyone who has invested in HEX in the hopes of holding on for that 10,000x return by June 2022…we wish you the best of luck. By that time Richard Heart will have gone from tanned to mahogany with the amount of tropical sun he has absorbed with your “donations”.