Worth investor Mike Alfred not too long ago slammed HEX because the divisive token dipped under $0.04. Bulls have since raised its worth again above this degree, to $0.042 at writing.
Nevertheless, year-to-date, HEX has misplaced 85% of its worth and dropped 92% from its all-time excessive of $0.51, achieved on September 19, 2021.
With that, the difficulty of HEX’s validity as a bonafide, reputable crypto challenge is once more again within the highlight.
How does HEX work?
Launched by founder Richard Coronary heart in December 2019, HEX describes itself as the primary blockchain certificates of deposit token.
Just like an ordinary certificates of deposit, buyers earn curiosity on a lump sum deposit for a set lock-in interval. On the finish of the lock-in interval, the investor receives the lump sum again plus the curiosity accrued over the lock-in time period.
Customers stake their HEX tokens for a share of the brand new token issuance (or inflation). Lock-in intervals vary from 1 day to five,555 days (15 years), with longer lock-in intervals paying larger APY rewards. The web site states the typical APY is round 40%, considerably larger than Ethereum or Cardano, which each at present pay round 4%.
The mechanics of HEX encourage customers to decide on longer lock-in intervals and to maintain re-staking expired deposits. In different phrases, to discourage taking liquidity out of the system on the promise of extra rewards.
Mimicking the inventory observe of “insiders” offering honest warning of promoting shares, HEX has the “Reality Engine,” which collates data on future intentions and penalizes customers “that break their phrase.”
“The HEX TruthEngine rewards customers for declaring how lengthy they’ll maintain and after they may promote. Customers that break their phrase have penalties which pay the customers that saved their phrase.”
Alfred unleashes an assault
In a latest medium submit, Solidity Developer HackLaddy didn’t maintain again in highlighting the important thing areas through which HEX “make[s] itself appear reputable.”
“HEX is a superb rip-off, which expertly makes use of FOMO advertising and marketing techniques, builds a cult-like group round itself, and makes use of misleading numbers and comparisons to make itself appear reputable.”
The piece goes on to record 5 main crimson flags, these being the unique HEX tackle, which took ETH in change for HEX, being empty, unknown entities answerable for the HEX contract tackle, claims the challenge is low threat, web site part devoted to explaining why HEX shouldn’t be a rip-off, and Coronary heart utilizing ETH from the ICO to mint HEX for himself.
Commenting on latest worth motion, Alfred known as out the reward system, saying it produces nothing however “extra nugatory Hex.” And signing off by calling Coronary heart exploitative of “poor and silly individuals.”
Hex is again beneath 4 cents, down 8% on the day, and quickly approaching zero. Hex is an outright rip-off. It creates no worth, income, income, or utility. All it does is print extra nugatory Hex. It is actually unhappy that Richard has systematically focused poor and silly individuals.
— Mike Alfred (@mikealfred) September 7, 2022