Is Richard Heart’s HEX Crypto a Ponzi Scheme?

• HEX crypto marked a 948,000% rise, since its launching in the year 2019.
• HEX project has given an average of 38% returns, seems like a lucrative business.
• The official website of HEX clarified that they do not own any ponzi scheme.

The HEX Project

HEX is basically an ERC20 crypto launched on the Ethereum blockchain. It is projected to be a store of value to replace the Certificate of Deposit. The HEX crypto holders had an average of 38% returns. This raises the concern just because the U.S. banks do not give annual interest more than 2%.

Over the concern, the official website of HEX, clarified in its web-page that they are not a “Ponzi Scheme.” The web-page contains a number of questions that generally raises the doubt towards the HEX project.

The Official Justification

As the official website mentioned that a Ponzi Scheme promises high returns, whereas HEX is programmed into the immutable smart contract without any third-party involvement. It also stated that the yield paid to Stakers comes only from inflation and not other users. Also, in HEX there are no promises.

Moreover, as the official justified, the value of HEX is virtually lent to all unlocked coins when the coins are Staked. Then these unlocked coins pay for the value borrowed by being diluted via receiving no inflation like Staked coin do.

Additionally, at present only about 10% of all HEX are Staked, but the Inflation is dependent on every HEX in existence. According to this the Stakers have more than only 3.69% APY and in reality it’s closer to 40%.

HEX Crypto Volatility

Richard Heart’s HEX crypto is similar in nature like any other cryptocurrencies. In HEX it is noted that the later participants end-up buying the top and losing most of their money. The below chart shows the all time price performance of HEX crypto, which has the anatomy of a pump and dump.

The HEX is currently pricing at $0.033379 USD with a down of 0.09% in the recent 24 hours. It is ranking at 202 on the most-traded cryptocurrency list with a market cap of $5.75 Billion.

The Strong Marketing by HEX

HEX has strongly presented and advertised itself to convince enough new buyers to drive up the token price via marketing. HEX ads were on the Buses, Taxis, in Subway and even in the Economist Magazine.

It must be noted that the biggest problem with Hex is ‘interest’ that is being paid, but crypto doesn’t generate revenue, so the only place that investment returns can come from is other investors. Hex will have to bring in over a Billion dollars in capital every year to keep the crypto price level (June 2022 price).

Source: https://www.thecoinrepublic.com/2022/10/10/is-richard-hearts-hex-crypto-a-ponzi-scheme/