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Hex is an ERC20 token. It was formerly known as BitcoinHex. Hex is created by Richard Heart, a serial entrepreneur who has developed multiple businesses with revenues in 10s of millions. Hex core functionality is to issue term deposits for Hex coins. Those deposits will earn interest denominated in Hex, depending on the length of the contract and amount staked.
Is Hex Coin a Scam?
We do not know. At this stage, not all the details are known and the smart contracts have not been finalised. However based on the info so far, I fail to see how free stuff can be a scam. Hex is not a scam for those who get it for free, however, those who buy Hex might lose all their hard-earned money. Details on how this may happen further on in the article.
The basic mechanics of Hex
Hex Coin will be airdropped to all Bitcoin holders. An Airdrop is done for free, it does not involve any payment. The Hex airdrop is not an ICO (Initial Coin offering) or an STO (security token offering). An ICO and an STO involve the investors paying money in exchange for tokens. Those receiving the Hex airdrop will not be paying anything. At the airdrop stage, those who claim Hex cannot claim to be victims of a scam. They have not paid anything for their tokens. Learn more: How to claim Hex. They got them for free!
Many (if not most) ICOs after having collected multiple millions have not delivered on their promises. Hex claims to be different. According to the founder of Hex, Richard Heart, Hex will be launched will all promised functionality live.
This is all to be confirmed, but our understanding is that at launch Hex holders will have
1) Free Hex tokens
2) A functioning system of term deposits which generate Hex interest.
Analysing the differences between Bitcoin and Hex, is very eye-opening. On Hex.win, the comparison reads more like a comparison between Ethereum and Bitcoin, but this is not the case.
Passive Income from Hex
Hex deposits generate interest. This passive income is distributed at the end of the term. The interest and capital can be used to create another term deposit or stake, harnessing the power of compound interest. Learn more: Passive Income from Hex
What is the worst thing that can happen to Hex Coin at launch?
- It flops and fizzles, people are not interested and do not claim
- People claim but do not stake
- The smart contracts develop a bug
- It is listed on exchanges and there are no buyers, giving it no bottom price.
All in all, the worst case scenario at launch for those who receive the airdrop is that Hex coin turns out to be worthless and people would have lost some time and some mental serenity in the process.
An argument was being made that Hex is a scam because it has the Bitcoin name in it, this was true in the past but now is no longer the case.
A sign that Hex coin is a scam? – The originator account.
Within the Hex smart contract, there is code embedded which distributes a share of the referrals and penalties to an ERC20 account referred to as The originator account. To my knowledge, no one has claimed direct ownership of this account. We can make intelligent presumptions on who owns this account though …
The originator account does not receive any money on the base claim nor does it receive any money on interest. It will receive a share of the
2) referral rewards
Mr Heart has not claimed that he owns the originator account and this is because if he did it would mean that people expect the token to go up in price which does not bode well with certain laws in certain jurisdictions.
There are three things the originator account can do with the Hex it receives
1) Sell the coins and do nothing
2) Sell the coins and use them for marketing Hex
3) Hold the coins and do nothing
4) Some other things I have not thought of
We have no idea which option or combination thereof the originator account will do from the above. Speculating on that is probably illegal. The safest thing to do is assume the worst i.e. that is the originator account is in it for himself or themselves.
Some may argue that those who received Hex Coins for free do not really care what the originator account does. They got the coins for free (except for time and energy) so any gains over and above zero are a plus. However what happens if Hex gets to $1 and the originator account dumps on them. Would they be the victims of a scam?
For those who actually bought the Hex coins, they are in a different dynamic. They can lose real money. They can lose their capital. Yes, these people are at the risk of being scammed if the originator losing dumps on them or if the smart contract breaks.
Hex will not be the only coin, where the founders hold a large percentage of the coins in circulation. Stellar and Ripple top hats own large amounts of their own coins.
When dealing with Hex you should
- keep your guard up
- be careful
- do your own research
If you buy Hex you are at a higher risk of losing your hard earned cash.
On the other hand, Hex has an excellent game theory mechanism to stimulate holding rather than selling which might push the price up. It has a passive income element which could provide a valuable stream of revenue. It is being created by an articulate, eloquent and intelligent founder who states that he is already very rich.
At this stage, having sounded the alarms. It is time to take one step back. I invite you to learn more about Richard Heart and his long term objectives. Have a look at all the video and in particular, check his words at 1:06
For more information please visit: Hex
Learn more: Masternode Scams