HEX has been snapping up the crypto Twitter airtime by the truckload in recent weeks, and not all the reports have been positive. But what is Richard Heart’s new enterprise, and why has it caused such a stir?
“Worth More than Gold”
Richard Heart calls himself a “blockchain thought leader”, “serial entrepreneur”, and “Bitcoin OG” among other accolades, and he has apparently put this experience to use in the crypto space by creating HEX, a new financial cryptocurrency that launched on the Ethereum blockchain on Monday. HEX purports to be the world’s first high interest blockchain certificate of deposit (CD) and is based on the total amount of the token pool being staked. Interest payments range from 3.69% to an eye-catching 369% if only one percent of the total supply is staked.
HEX claims on its website that, “CDs are worth more than gold, credit card companies, and cash”, which is an interesting take on a token that can fluctuate in price like any other. Considering that interest is paid out in HEX tokens, this is a critical factor. HEX’s value, it seems, will come purely from its potential to increase in value by simply sitting there locked up in itself, which should represent something of a concern for potential investors. However, should the demand for HEX be high enough because of its ability to pay healthy interest then the token could feasibly stay afloat.
The response on Twitter was mixed, to say the least. The token has a referral policy which can earn holders up to 20% extra, which may help to explain some of the heavy promotion going on, while others were more circumspect about the token’s chances and motives:
$HEX is a massive data collection tool: mapping BTC + ETH + IP addresses. Also, Richard and team have 100% visibility into staking and claims, which gives them perfect pump/dump info.
Don’t be fooled by Bitconnect 2.0 #hex$BTC $ETH
— Peter Schiller (@PeterSchillBTC) December 1, 2019
If you understand the $HEX profit simulator, you should get some sort of medal.
— Wake up, time to buy! (@DeCipherist) November 19, 2019
So, Richard is trying to create a pump and dump ponzi that always pump and never dump.
It’s not going to happen. Because $HEX is worthless and pointless. People are staking worthless shit that has no value at all.
— Adr (@permabulltard) December 1, 2019
Of course, time will be the only decider on whether locking up your HEX will turn out to be a good decision or not, but it’s a common trope that if something seems to be too good to be true it usually is, which is where the best scams originate.