The cryptocurrency project HEX has often been called a scam because of its flashy advertisements and bold design intentions. Today I want to take a look at the standard claims made against the project that supposedly prove that is in fact a great investment opportunity. So lets get right into it
In HEX´s adoption amplifier you mint your own HEX for ETH. Somehow people think this is a scam when in fact it’s a simple transaction. You give up your ETH and receive your HEX. No scam here.
HEX advertisements are currently saying that the price went up 11,500% from the all time low. This does not prove that it is a scam at all. Past performance is no guarantee of future performance, however, cryptocurrencies have been the highest appreciating asset class in the history of mankind, and that’s useful to know.
It is simply describing what it has done in reality in the past. HEX makes no price claims for the HEX/USD or HEX/ETH price whatsoever. If you buy HEX and the HEX price goes down, you lose money same as in bitcoin or stocks or any other security that you buy. Again no scam here
Similar to #2 HEX marketing only states what the design intention was. Formula 1 cars are designed to win Formula 1 races. Only a few of them do. It makes no promises what the HEX/USD price will be. You carry the price risk of the HEX/USD pair. It simply points out that through the staking mechanic people tend to buy and hold because they want to earn interest, so they do not sell them. This removes supply side selling pressure to increase price. Also, no scam here.
Compared to a lot of other cryptos that raise money first and then promise work being done later, HEX is a complete and audited smart contract that is immutable on the blockchain. It is not possible for anyone to scam you out of your future returns through interest because HEX is non custodial. You burn your coins when you stake, and you mint new ones and a reward when you end stake. Thus, the HEX smart contract will always be able to pay out interest returns in HEX without any counterparty risk.
To clarify, when you stake you can choose a length for your stake. If you then emergency end stake to make your coins liquid again before that period is over, you have to pay a penalty. This is because in essence you made a promise how long you would lock your HEX and then broke that promise. 50% of the penalty goes to other stakers and 50% goes to the origin address. Now in theory, the origin address holding so many coins could be a problem if it was selling the coins and thus lowering the price. However, in HEX everything is auditable on the blockchain and you can see what the origin address is doing. It has never sold any coins ever. Of course, the risk here is that the origin address could change its behavior and sell.
Now many cryptos have some sort of large bag holders (including Bitcoin). What do you think would happen to the Bitcoin price if Satoshi one day decided to sell them all? This is just a risk of every crypto where there is some players that are holding large bags of the crypto that could sell at any moment. In no way is this evidence that HEX is a scam.
HEX has a referral program with one tier where you can refer people and both you and the person you refer get a little extra HEX. It works the same way as Amazon´s referral program and many other similar programs. It has one level only. Additionally, the referral program will only be around until the launch phase of HEX is over (in 101 days).
Summarizing, HEX is a speculative investment that has the same price risk as any other security that you buy. It pays interest to people who lock up their coins for a duration of their choosing. Ponzi schemes promise returns in USD and fail to deliver those returns eventually.
HEX pays out the inflation of 3.69% per year to the stakers and It will always be able to pay out this inflation. HEX makes no promises of returns in USD or ETH. Thus, none of these claims have any true merit.
If you like the article, feel free to send a tip to our writers in HEX Token To : 0x6F047Ac7269C2888B2CB57D05A34A79Cf7a1D275 , or any other Cryptos via this link.
Thank You,
The TCAT team.
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