HEX Token Sees Over 37,000% Growth, But Is It A Scam?

The 2-year cryptocurrency project offers 38% staking rewards. Is the project legit or a scam?

The HEX token is based on the Ethereum blockchain. Their website says that they are the first blockchain certificate of deposit. Those who stake HEX tokens earn an average of 38% return. The figure is lucrative because most US banks offer no more than 2% annual interest.

Who is the founder?

The HEX was founded by Richard Schueler, who adopted the stage name Richard Heart. One of the steps to fundamentally analyze any Web3 project is to review the history of its founder.

Source: WantFi.com

Richard’s mail archive shows that he used to teach a course on how to spam people. In fact, he was accused of invoking the Washington state anti-spam law.

his twitter Biography read that he owns the most expensive Rolex, the fastest Ferrari in the world, and a few more who brag about his lifestyle. He has flexed his wealth on multiple occasions on social media. When asked why he flexes wealth from him, he replied that it was for views and commitment.

Source: Twitter

HEX’s aggressive marketing focused on price gains.

from twitter Name from the official account the profit in the price and the rewards of high bets are read. There aren’t many genuine projects that focus as much on price gains as HEX does. Generally, the projects are concerned with building the best services for their community. Their social media handles don’t market how much the token price increased, let alone shout it out through their handle name.

They also started a Campaign #HEXBoughtThis on social media, where shillers or early investors flex their wealth purchased from HEX profits.

Source: Twitter

It is one of the most aggressively traded crypto projects. The project has been advertised in newspapers, magazines, billboards and airports. All of these campaigns focus on showing how much the price of the token has risen. The approach is the same as any get rich quick scheme, to satisfy the greed of the common people. a Twitter user aware that HEX used customer records from the Ledger hack and mailed marketing material to addresses obtained from there. How many Web3 projects do marketing on par with HEX?

Source: hex.com

The website claims that investors will generate “life-changing wealth.” Genuine projects with strong products do not focus primarily in increasing its market price for marketing purposes. The Bitcoin and Ethereum website does not discuss price fluctuations or the creation of “life-changing wealth” because they serve a purpose. Investors making money is a byproduct of the larger purpose these projects serve.

Source: HEX

HEX buyers have an incentive to lock up their capital for a certain period. There is a heavy penalty if someone unlocks them before the lockout period is over. This effectively reduces the supply of tokens in the market, and the demand is generated through FOMO with the aggressive marketing campaign.

The rewards for betting.

The website, at the time of writing, shows staking rewards of 38%. Who gets rewarded for gambling?
In the proof-of-stake consensus mechanism, validators deposit a certain amount into the smart contract as collateral to keep the blockchain secure. They are rewarded for their active time and trimmed for being inactive for a long time.

While there is no such thing with HEX, participants do not stake their HEX to secure the blockchain or validate transactions. The sole purpose of staking HEX is to reduce supply, which puts upward pressure on the price of HEX.

Source: HEX

The argument about whether or not HEX is a scam is a hot topic of debate among the Twitter community. Along with critics, the project has attracted a stalwart following. Notable industry leaders believe that HEX is a scam that will zero.

HEX reached an all-time high in September 2021 at 0.51. It is down about 94% from all-time highs. Most crypto scam projects do not survive the test of bear markets. Will HEX survive the current bear market or go to zero? Perhaps only time can answer this.

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