{"id":120592,"date":"2019-12-09T19:03:04","date_gmt":"2019-12-09T19:03:04","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=120592"},"modified":"2019-12-09T19:10:01","modified_gmt":"2019-12-09T19:10:01","slug":"richard-hearts-hex-token-raises-concerns-in-the-crypto-community","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/richard-hearts-hex-token-raises-concerns-in-the-crypto-community\/","title":{"rendered":"Richard Heart’s HEX token raises concerns in the crypto community"},"content":{"rendered":"

HEX, a new cryptocurrency that claims to be the first high-interest blockchain certificate of deposit, is facing significant backlash after different analysts argue that the project was launched mainly to enrich its founder.<\/p>\n

The new crypto on the block<\/h2>\n

On Dec. 2, Richard Heart, a blockchain thought leader and cryptocurrency investor, launched a new cryptocurrency, dubbed HEX, on the Ethereum<\/a> network via a Bitcoin<\/a> UTXO snapshot. Heart claims that the token is \u201cdesigned to increase in value faster than anything else in history,\u201d and \u201cdo over 10,000x returns in under 2.5 years.\u201d<\/p>\n

Thus far, the project received over 33,000 ETH, worth approximately $5 million, in \u201cdonations\u201d that were automatically \u201ctransformed\u201d into HEX.<\/p>\n

Despite its popularity, many analysts, such as Goldman Sats, argued that HEX is far beyond a Ponzi or pyramid scheme. In a recent Medium post<\/a>, Goldman assured that the project has its \u201cfounder\u2019s perpetual self-enrichment\u201d embedded into the protocol.<\/p>\n

Goldman Sats said:<\/p>\n

\u201cA deeper analysis shows HEX was designed for one thing only: to enrich Richard Heart himself, at the expense of every other participant. Even in a sea of ethically dubious projects, HEX stands out as being the most egregious.\u201d<\/p><\/blockquote>\n

According to the analysts, the way HEX was created gives Heart ownership of almost half of the tokens through something called the \u201cOrigin Address.\u201d Described in HEX\u2019s \u201cContract in Layman\u2019s Terms<\/a>,\u201d the Origin Address receives a copy of all bonus payments specified in the protocol regardless of the success of the project. And, half of the penalties involving staking.<\/p>\n

Goldman affirmed:<\/p>\n

\u201cIf more Bitcoin holders free claim, the Origin Address will receive more \u2018Speed Claim\u2019 and \u2018Referral\u2019 bonuses on the front end, as well as more \u2018Critical Mass\/Virality\u2019 bonuses at the end of the launch phase. If fewer Bitcoin holders claim, the Origin Address will receive more \u201cWe Are All Satoshi\u201d bonuses that distribute all the unclaimed HEX to stakers.\u201d<\/p><\/blockquote>\n

\"HEX
HEX's Origin Address. Source: HEX Contract in Layman's Terms<\/a><\/figcaption><\/figure>\n

Goldman believes that even if Heart decides to \u201cdump all his HEX and abandon the project,\u201d the balance in the Origin Address would still increase over time with penalized HEX. He concluded by stating that Heart \u201ccreated a game, given himself most of the chips and made it so that the rules will always be in his favor.\u201d<\/p>\n

Goldman Stats is not the only prominent figure in the crypto community who has stepped forward against Richard Heart\u2019s new cryptocurrency. Tone Vays<\/a>, a former VP at JP Morgan Chase, called<\/a> it a “shitcoin” and compared it to Monopoly money. Meanwhile, Giacomo Zucco, a Bitcoin evangelist, created zuxbux.win to mock HEX. And, Peter McCormack<\/a>, host of the What Bitcoin Did podcast, call Heart a scammer.<\/p>\n

\n

. @PeterMcCormack<\/a> shows everyone how to deal with the HEXit Scammer, he dominates this stream and does not let @RichardHeartWin<\/a> divert into other distractions to steer the discussion away (his usual tactic), Peter stays on topic and ask where the ETH goes persistently ! ??? pic.twitter.com\/5FiqmPLVeY<\/a><\/p>\n

— Crypto Meme Central ?Jan 3? (@CryptoScamHub) December 6, 2019<\/a><\/p><\/blockquote>\n