Since the inception of the first cryptocurrency, the market was abound in scams because many people wanted to dishonestly cash in on the crypto business. On the other hand, every new project, even BTC or ETH, was accused of being a scam but over time the general public became convinced of the good intentions of their founders. It was no different with HEX, and the main accusations were as follows:
IS IT TOO LATE TO INVEST IN HEX?
Bitcoin has risen 6.9 million times from $0.01 to $69,000 in 12 years. Many people complained regularly that BTC was too expensive and many people did not invest in BTC for this reason. Over the years, its price has increased, reaching a skyrocketing $69,000 per token in 2021.
HEX has grown 10,000 times in less than two years and if this trend of growing faster than Bitcoin in its early years continues, it will grow at least another 650 times, making 1 HEX token worth more than $350 in 10 years. The takeaway from this forecast is that it is not too late to invest in HEX. If you do it in time, you have the chance to boost your profits significantly in the future.
ACCUSATION OF A PONZI SCHEME
A Ponzi scheme is a financial pyramid that was first used by an Italian expatriate Charles Ponzi in 1919 in the USA. The Ponzi scheme involves attracting as many investors as possible by luring them with the prospect of quick and high returns. The invested funds are not invested in assets and the profit source of the venture are the contributions of new investors. In the final phase of the Ponzi scheme payouts are equated with the founder’s capital which leads to the investment collapse. This quasi-structure is usually promoted with a false magic mechanism to enhance credibility of the high rate of return. HEX is not a Ponzi scheme because the return is derived solely from inflation and not from investor contributions, which is included in the smart contract and the users creates their own rewards.
HEX has been referred to not only as a Ponzi scheme but also as a multi-level marketing (MLM) system. MLM involves referring users at multiple levels, which results in newly deposited funds being passed on to old users. The MLM scheme is similar to a Ponzi pyramid. In HEX there is no referral scheme and no intermediaries. Under the scheme you mint the rewards yourself, similar to what Bitcoin miners do.
SPECULATIVE BUBBLE
A speculative (or economic) bubble occurs when there is a sudden and continuous amplification of asset prices which attracts new investors. Let’s explore the two conditions that must occur for us to speak of a speculative bubble. The first one: there must be a sudden change in the price of an asset above its average value and then this phenomenon must persist for some time. The second condition for a speculative bubble is a price adjustment, i.e. a bubble burst or crash. Any price set in the free market can be adjusted, which does not mean that the product in question must be a bubble or a Ponzi scheme. Such a trend is specific to the cryptocurrencies such as Bitcoin, Ethereum or HEX, but also to the housing market.
IS HEX A SCAM?
Accusations of fraud arose not long after the HEX product went public. Their source was the jealousy of traders or investors of Richard Heart’s success. Many of the haters blackened HEX on the grounds that they had chosen not to invest in it, having watched the cryptocurrencies huge increases over the years. No one has ever been defrauded by HEX, as it is a decentralized and complete Blockchain-based product that involves tokens invested into term deposits that yield a guaranteed profit. This profit comes from a fixed annual inflation rate of 3.69%. No one owes anyone anything. Each investor strikes his or her own rewards and is indebted to himself or herself, and no intermediary is involved in transactions or operations using the HEX contract. The value of HEX is practically lent to all unlocked coins when they are staked, similar to futures deposits. If HEX is a scam, where are the victims?
Read more in my book ‘Second Crypto Revolution: Build Generational Wealth With Richard Heart’s Crypto Ecosystem“.