Cryptocurrency

Investor Mike Alfred takes shots at HEX as it slides below $0.04

Zegex

value investor Mike Alfred Recently slammed HEX for splitting tokens below $0.04. The bull has since pushed the price back above this level, where he has climbed to $0.042 at the time of writing.

HEX daily chart
sauce: HEXUSDT on TradingView.com

But year-to-date, HEX has lost 85% of its value, down 92% from the all-time high of $0.51 reached on September 19, 2021.

As such, the issue of HEX’s validity as a bona fide legal crypto project is once again in the spotlight.

How does HEX work?

Founded by Richard Hart in December 2019, Hexadecimal It has established itself as the first blockchain proof of deposit token.

Similar to standard certificate of deposit, investors earn interest on lump sum deposits for a certain lock-in period. At the end of the lock-in period, the investor will receive a lump sum plus interest accrued during the lock-in period.

Users wager HEX tokens against their share of new token issuance (or inflation).The lock-in period range is 1 to 5,555 days (15 years), the longer the lock-in period, the higher the APY reward paid. According to the website, the average APY is around 40%, ethereum Also Cardanoboth currently paying about 4%.

The HEX mechanism encourages users to choose longer lock-in periods and continue to re-stake expired deposits. In other words, to discourage the promise of higher rewards to drain liquidity from the system.

Mimicking the “insider” stock practice of providing fair warning of stock sales, HEXengine of truth‘ collates information about future intentions and punishes users who ‘break promises’.

“HEX TruthEngine rewards users by declaring how long to keep and when to sell. Users who break promises have penalties to pay to users who keep their promises.”

Alfred attacks

In a recent medium-sized post, Solidity Developer hack lady HEX did not hesitate to highlight the key areas that ‘make'[s] It looks legit in itself. “

“HEX is a clever scam, skillfully using FOMO marketing tactics, building a cult-like group around itself, and using deceptive numbers and comparisons to make itself look legitimate.”

This article lists five major red flags. They are the original HEX addresses that got ETH in exchange for HEX, empty unknown entities that control the HEX contract addresses, claiming the project is of low risk. Dedicated to his website section explaining why HEX is not a scam, Hart uses ETH from his ICO to create HEX himself.

Commenting on recent price action, Alfred said the reward system produces only “valueless hexes.” And he signs off by calling Hart exploiting “poor and stupid people.”

Posted In: People, Rumors

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