Richard Schueler’s HEX initiative, introduced in December 2019, attempts to make certificates of deposit accessible on the blockchain. On November 16, 2021, the HEX token reached an all-time high of $0.5561.
But in just seven months, on June 18, 2022, it had fallen to a low of $0.0286.
What is HEX?
Richard Heart, also known as Schueler, is an author, YouTube celebrity, serial entrepreneur, philanthropist, and the creator of the PulseChain network. He has raised more than $27 million for medical research.
The idea is meant to become the first certification of deposit in the cryptocurrency industry, as stated on the official HEX website. In conventional banking, a CD is a product that yields a return slightly more significant than the typical savings account for the customer when the customer agrees to lock up the investment capital for a set period.
When investors want to lock up their HEX holdings for a predetermined period, which can range from one day to several years, a HEX CD operates similarly to traditional banking in that it pays a return to investors.
HEX Crypto claims to use a proof-of-wait (PoW) protocol that does not need miners to participate. Instead, investors create new currencies by holding HEX for the agreed-upon holding period. The HEX smart contract is designed to create new coins to pay out the holder when the holding term is up, turning them into “miners” in this ecosystem.
On top of the Ethereum platform, HEX is a layer-2 (L2) application that helps improve primary chain throughput. It is powered by a smart contract that controls the creation and distribution of tokens to investors.
HEX Crypto currently provides an annual percentage yield (APY) of 40%, based on the length of the waiting period.
Existing holders are repaid in HEX tokens after the lock-up period ends.
The idea is built so that as the price increases, fewer HEX coins will be needed overall to pay off customers. If the cost suddenly drops, however, the inflation of tokens will rise since more tokens will be needed to pay the same amount.
Because of the way the project is set up, everyone will always receive payment in HEX tokens. Because the price has risen dramatically in the past, new investors have come in with the hope of profiting from the token’s increased APY and subsequent price rise.
HEX is a token instead of a coin because it is built on the Ethereum (ETH) blockchain. You may find references to a HEX coin price prediction, but these are incorrect.
Is HEX a good investment?
It’s difficult to say. The token’s ability to bounce back from recent losses and the overall performance of the cryptocurrency market will be key factors.
Remember, before investing; you should always conduct an extensive investigation. Keep in mind that you should always do sufficient research before investing. Investors should be aware that even high-market-cap cryptos are susceptible to the current bear market, so they should never risk money that they cannot manage to lose.
Hex is a one-of-a-kind product with significant community utility. The Hex product’s mass adoption is critical to Hex’s future performance. To reap the benefits of the enormous returns, stake the token on their platform. Hex has provided significant profits to early investors. However, Hex sceptics are sceptical of the high % return given the Hex token’s considerable fall in value this year.
Because Hex has a small market cap, the cryptocurrency world’s volatility has significantly impacted its success. When the bear market ends, Hex will begin to rebound. It will be highly beneficial during the subsequent market bull run.
The Hex ecosystem provides a unique deflationary mechanism that rewards people that retain HEX, allowing it to develop in the future. As the crypto sector develops and adopts, more investors may see HEX as a viable investment opportunity.
Is it safe to invest in HEX?
Since its inception in 2019, there has been speculation over whether HEX is safe and whether it is a fraud.
Doubters referred to the founder of HEX’s background. Heart allegedly engaged in illegal acts as early as 2002, including a breach of US spam regulations.
However, CoinFabrik performed a security audit on the HEX smart contract in December 2019. According to the CoinFabrik analysis, no severe security flaws were discovered.
CoinFabrik did disclose a few minor issues, such as “replay signature with updated parameters” and “extra gas for computation,” which the HEX team corrected. The auditor found that the Solidity HEX contracts were “clearly written and adequately recorded.”