HEX and Its Warning SignsUpon visiting the project’s website, various red flags are immediately apparent. The most significant is the rate of returns HEX claimants or investors can look forward to. The site reads:
“HEX IS DESIGNED TO INCREASE IN VALUE FASTER THAN ANYTHING ELSE IN HISTORY.”The system reportedly allows users to earn interest payments on the HEX they hold. Heart claims that a yearly ROI could be as much as 369% depending on the number of people staking HEX tokens via smart contract. These rates of returns will, in theory, attract new people to stake HEX and this demand will result in a rapidly surging price. There are two methods by which someone can take exposure to the ERC-20 tokens. The first is by making a claim on Bitcoin held in a personal wallet prior to a snapshot taken at the start of this month. Each Bitcoin held will award 10,000 HEX with the number declining the longer from the snapshot they leave it before making their claim. Claiming requires the use of an active Bitcoin private key, which has caused many observers to call it a potential privacy leak. In a lengthy article, journalist Vlad Costea discussed how those less savvy at preserving their anonymity online risked exposing their Bitcoin holdings to the world when claiming HEX. This, for Costea, presents a clear security risk to those wanting to claim HEX tokens. The second way to get HEX tokens, and the reasoning behind even more of the criticism levied at the project, is by buying them with ETH. Heart, on the website, claims that “over 21,700 ETH has joined the transformation lobby to be turned into HEX”. In reality though, the Ether doesn’t get “transformed.” You’re buying the already created units from Heart and he stands to profit handsomely.
Critiquing Heart’s PlansSeveral notable cryptocurrency market analysts have critiqued Heart’s HEX plans. With the project now live and having generated more than $3 million in ETH, these criticisms are getting louder. Podcaster Peter McCormack and YouTube technical analyst Tone Vays have both recently aired lengthy editions of their respected shows to discuss the Bitcoin-related investment scheme. Another taking particular issue with HEX is trader and economist Alex Krüger. In a reasonably detailed Twitter thread, Krüger calls the project stupid, those behind it greedy, and those investing in it “suckers.”
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
Images are courtesy of Twitter, Shutterstock.
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.