A Mystery of Controversies, Sacrifices and Scams

The first phase of PulseX’s “sacrifice” recently concluded, which brought the total investment in the project to $1 Billion, making it one of the biggest (if unofficial) funding rounds in crypto history. This event occurred only four months after a half-billion-dollar sacrifice was made to Pulsechain, a future Ethereum fork where PulseX is anticipated to be the primary DEX.

The PulseX Website Controversy

The PulseX website had a loophole that allows sacrificing crypto without buying PLSX. Many view it as a security avoidance tactic, while others see it as a suspicious move. 

Richard Heart, founder of Hex, led the massive crowdfunding campaign. The discussion is limited to the Hex community.

Ethereum’s popularity has made it expensive to use and slow, with gas fees (the cost of validating transactions) occasionally reaching hundreds of dollars in 2021. As a result, developers have recognized the potential of new Layer 1 chains, such as Solana, Binance Smart Chain, and Polygon, which host their own DApps. 

Some of these chains are incompatible with Ethereum and require bridging solutions to interoperate, while others, such as Polygon, are compatible with Ethereum.

For users, the most apparent advantage of using an EVM-compatible chain is the ability to swap an ERC-20 token on that DEX or purchase a project token from your chain on an Ethereum DEX like Uniswap.

When building a Layer 1 chain, developers can theoretically copy the entirety of Ethereum’s code, create a vastly different protocol, or, as in the case of BSC, make some improvements to it. 

In crypto lingo, a “fork” of a blockchain refers to an upgraded version, where developers make changes to the protocol and its rules. When Ethereum makes upgrades, such as the London upgrade, they are also referred to as forks.

PulseX is the fork of Uniswap since the Ethereum ecosystem will be copied over to Pulsechain. It is intended to be the primary DEX of the Pulsechain ecosystem. 

PancakeSwap, for example, is also a fork of Uniswap and fulfills this analogous function on the Binance Smart Chain.

DEXs like SushiSwap and Uniswap have their governance tokens, such as SUSHI and UNI, respectively, which grant voting rights to holders. 

PLSX is PulseX’s token. The company said that those who made sacrifices would receive a certain amount of “points” based on the size and timing of their contribution.  These points correspond to a quantity of PLSX to be airdropped to their wallets once the exchange launches. 

PLS Token and its Airdrop

Pulsechain’s native cryptocurrency, PLS, was said to be airdropped to those who made sacrifices for the project. In 2023, PulseChain conducted an airdrop of its native token, PLS, on May 10th. Eligible crypto holders received free PLS based on their Ethereum holdings.

The goal of the project is to reduce the burden on the Ethereum network. Every wallet received a match of their ERC-20 tokens on Pulsechain through a massive airdrop. 

However, the price of the same token on Ethereum and Pulsechain tokens cannot be pegged. The project is directly connected to Hex, a controversial token with questionable fundamentals.

Summary

PulseX had a security loophole that allowed sacrificing crypto without buying PLSX. Richard Heart led the crowdfunding campaign and PLS was airdropped to those who made sacrifices. PLSX is PulseX’s token and contributors receive “points” based on their contributions.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.