Cryptocurrency traders and investors are constantly looking out for the next big thing. One thing learned from the 2017 pump is that FOMO can spread like wildfire and a crypto asset can surge for practically no reason. HEX is getting a lot of attention at the moment but all may not be what it seems.<\/p>\n
The project describes itself as a blockchain certificate of deposit (CD), similar to a fixed deposit interest paying service traditionally offered by banks. Outspoken project founder Richard Heart has been extremely vocal lately the platform has generated quite a bit of criticism and controversy.<\/p>\n
It has been described as a colossal pyramid scheme with questionable ethics. Essentially token holders will be able to re-stake them for potentially huge returns in terms of interest depending how much of the total supply is staked.<\/p>\n
Heart has vehemently defended his baby by attacking the banks and bitcoin<\/a> alike. HEX went live last week but the majority of transactions on its contract<\/a> have no monetary value, presumably because the snapshot gave the initial cryptocurrency away for nothing.<\/p>\n Just like a pyramid scheme, HEX has an elaborate referral system which is likely to enrich those at the top, namely the founder. It claims that this will continue for 50 weeks after which all of the tokens ever created will be distributed.<\/p>\n To get HEX, participants can buy it sending Ethereum<\/a> to a so called the \u2018Adoption Amplifier\u2019, which functions as a recurring daily auction. They are effectively trading ETH for HEX though, no matter how it has been worded.<\/p>\n There is another way of getting them and it involves revealing how much bitcoin a participant holds by storing it in a wallet address to receive 10,000 HEX tokens per BTC held.<\/p>\n At the moment there is no price data<\/a> on the tokens which have only just started circulating.<\/p>\n Lawyer Stephen Palley has questioned the use of the certificate of deposit to describe the scheme noting that it does not return the ETH investments.<\/p>\n Here's the thing. A CD (which is what Heart says Hex is) is a certificate of DEPOSIT. You get the money back, after interest is paid. This guy is calling something a CD that doesn't give you your ether back. It is a CD only in the sense that it is deposited elsewhere. https:\/\/t.co\/ai6VLMltGf<\/a><\/p>\n — Palley (@stephendpalley) December 10, 2019<\/a><\/p><\/blockquote>\nEnriching The Owner?<\/h2>\n
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