Home CryptocurrencyAltcoins Why You Should Stay Away From HEX

Why You Should Stay Away From HEX

by Pragati Shrivastava
CryptoTraderNews scamalert HEXtoken

What’s with the dire warning about HEX in our header? I promise you it’s not clickbait but rather a stern warning to vet before you invest because the market is not being kind to this token and there may be valid reasons why you should stay away from HEX.

Hex is an ERC-20 token that ranks 2309 on coinmarketcap.com based on market capitalization. The coin’s price has dropped by 3.47% in the past 24 hours and may soon drop even further. Crypto experts have been warning users about this coin for a while now, so this shouldn’t come as a big surprise to anyone. Designed by Richard Heart, HEX works like a traditional bank’s deposit certificate, except it’s cryptocurrency, not fiat money. It may also be referred to as “Fiat Deposit” and more information about that can be gleaned from the HEX FAQ page.

As an ERC-20 token, we know that it operates on the Ethereum blockchain but I find it extremely interesting that Richard Heart has publicly criticized Ethereum on several occasions.

“Bitcoin will always be better than Ethereum. Ethereum will always have more down time than Bitcoin and the Ethereum blockchain is bloated.”

What does this say about Richard’s decision to launch on a platform that he feels is bloated? Certainly, this raises red flags for me. If Heart is aware of the shortcomings of the Ethereum network, why did he build there, and more pressing, why has he stayed on the Ethereum network? Is he in some kind of rush to pull the next big exit scam? Traders unaware, or despite the warning signs, have been pooling this token to claim it and get on the top side of a sinking token. In my opinion, HEX is currently one of the worst to earn from or trade.

Hex’s business model is unlike other tokens in the crypto industry. It employs every trick in the book to get you hooked. Here’s how it works: HODL Bitcoin for snapshots and earn free tokens. Get rewarded again and again, increasing your tokens. Excitement builds. Keep staking and earn even more. Before you know it, there are orchestrated pumps and the lure and trap is set for small fish to buy in. When the market looks ripe, the whales dump and anyone who bought these shit tokens are left holding the bag; the token is worthless.

How many times have we seen this?

The freemium business model is definitely not the most creative scams, but it is highly effective. The accumulation of HEX might be a game to many, especially if you got in really early, but in the long run, it is a black hole that pulls all your stakes.

Maybe I’ll take a lot of heat from saying it like I see it but I’m angered that some crypto traders defend this type of behavior and argue to say it has true value through employing game theory and therefore not a scam. Is it because they’re waiting for the right moment to dump?

Here’s another caution flag. If you’ve actually read through their privacy policy, there is an eyebrow raising line: “The origin address gets a copy of bonuses.” Excuse me? Isn’t one of the main purposes of blockchain to prevent copies? What does this mean? If you ask me, I would question the safety and security of your precious HEX bonus tokens. You might think they’re safe but I wouldn’t be so sure.

I’m not done yet. Another reason to be wary of HEX is the poorly patched code is makes up the HEX smart contract. If there are bugs in the system, then who’s to say there won’t be a terrible crypto event. Immutability in transactions and asset transfers is vital; immutability in software is a major handicap. It’s anyone’s guess what or when the fallout will get triggered and the blockchain is compromised.

Admittedly, there is nothing much to lose at the moment. HEX is just a game after all. The free tokens are fun to claim and accumulate. There’s a certain sense of instant gratification. But if the project has poor fundamentals and you are participating anyway, don’t cry when you’ve been had because you’ve been warned.

The appeal to many is that HEX’s website claims the token was “designed for 10,000x returns.”

This sets off personal alarm bells for me, and I would guess that if this project was put to SEC’s Howey Test, it sure would register as a scam. Notably, since its launch, the coin has lost 60% of its value and I expect that it will lose more, especially if another pump and dump is orchestrated. Developer Kieran Mesquita distanced himself from the project midweek in December. Mesquita says that he became uncomfortable with the project’s business practices and the project’s founder Richard Heart. He says that the most interesting technical aspects of the project were were replaced with marketing jargon and empty promises.

If the developer has any integrity within the blockchain and crypto field, you might want to listen to him. This project has unfair distribution and half of its circulating supply is in Heart’s possession. This may leave investors burned if they HODL this token. This isn’t rocket science; it’s common sense. In light of these discoveries, think twice about buying HEX.

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