Summary: CoinMarketCap has recently updated their listings to show Hex as the 4th biggest cryptocurrency with a market capitalization of $71 billion. Even though this coin may seem like a great investment at first glance, a deeper inspection reveals this coin’s ulterior motives and lack of true value. Hex is a highly controversial cryptocurrency and has ...
CoinMarketCap has recently updated their listings to show Hex as the 4th biggest cryptocurrency with a market capitalization of $71 billion. Even though this coin may seem like a great investment at first glance, a deeper inspection reveals this coin’s ulterior motives and lack of true value.
Hex is a highly controversial cryptocurrency and has been since its creation in late 2019. Let’s take a look at what Hex is, what it promises, and why people are skeptical of it to determine whether or not it truly is a scam.
Hex was created in December 2019 by Richard Heart. The website states that Hex and the HEX token are created to be “the first high interest Blockchain Certificate of Deposit.” One of the most prominent wordings on the website is the statement that users can earn over 40% a year staking their HEX.
The reason that Hex calls itself a blockchain certificate of deposit is because users can choose to lock their HEX for between 1 and 5555 days, and earn interest on that deposit which averages to a 40% APY. This is similar to a traditional bank savings account or CD, but offers a significantly higher interest rate.
Up until now, HEX’s price has seen monumental growth. Since its initial release, the price of HEX has increased over 10,287x, meaning that anyone who invested $100 at the start of the project is now a millionaire. Currently, there are over 200,000 addresses holding HEX, and that number seems to be growing every day. They also claim their current market capitalization is $250 billion, though this number cannot be verified by outside sources.
All of these accomplishments may make the coin seem too good to be true, and many argue that this is exactly the case. One of the main arguments against HEX is that the coin has no fundamental value. It hopes to be like Bitcoin, in the sense that people think it has value thus it increases in price. However, unlike Bitcoin, it is not established and does not have its own blockchain but instead runs on Ethereum. Many other coins have tried and failed to be the next Bitcoin, and there is no reason that Hex is different. Without any demand for the token, it can offer whatever interest rate it wants, and it still does not gain any value.
Second, they heavily advertise their coin to the general public and always use wording about how much the coin has increased since its release. There is not a single legitimate project that brags about its earnings as a way to get investors interested in the project, whether in the cryptocurrency or traditional market. This tactic is simply trying to get the average investor to feel FOMO, fear of missing out, about future increases in HEX price. However, the opposite is more likely to be true, as now that HEX is a massive cryptocurrency it is nearly impossible for it to see a 10,000x, or even a 10x, gain.
One would think that if HEX was a legitimate project that is revolutionizing the interest-bearing banking system that it would have listings on major cryptocurrency exchanges. Instead, HEX is not listed on a single major exchange, and the vast majority of its trading volume comes from decentralized exchanges like 1inch and Uniswap, where literally any coin can be listed without being subject to approval.
Additionally, Hex’s website has an entire section dedicated to dismissing the idea that HEX is a scam. There is not a single project that is not a scam that has to convince people otherwise.
For those who do not want to simply believe one article on the internet, and instead want to do their own research, you may run into a problem: Hex does not have a whitepaper for their cryptocurrency. Every major project that is trying to accomplish something in the cryptocurrency space opts to create a whitepaper, however Hex has not, meaning it is incredibly difficult to find unbiased and transparent information about the project.
It is likely that HEX’s inclusion on CoinMarketCap will be rolled back after cryptocurrency experts and others begin to criticize the project for its baseless claims and lack of value. There was a reason that CoinMarketCap refused to acknowledge it as a legitimate cryptocurrency until now, but the reasoning is unknown as to why they changed their minds and decided to list it.
Cryptocurrency investors may want to stay away from HEX, as it has characteristics of a scam cryptocurrency like BitConnect. Though it may not explicitly be a scam in the sense of taking money from investors, it does not have any fundamental value, and will likely fall into obscurity over the coming years.
By Lincoln Murr