A cryptocurrency that gained 37,000% in its first bull season after launching last year could be a scam. This project, which is only two years old, is currently handing out 38% annual stake rewards.
Cryptocurrency fraud claims earning 37,000 percent
One of the steps to fundamentally analyze any project on Web3 is to check its founder’s history. The related altcoin project HEX (HEX) was founded by Richard Schueler, nicknamed Richard Heart. The founder’s Twitter bio shows that he is someone who flaunts with brands like Rolex and Ferrari. Schueler is not afraid to show off his wealth. When asked why he did this, he replied that it was for sight and engagement.
HEX’s marketing focused on price increase
When we look at the official Twitter account of the project, the first thing we see is how much money it has earned. There aren’t many original projects that focus on price increases as much as HEX. Often projects take care to create the best services for their communities. Social media accounts don’t market how much the token’s price has gone up, let alone shout it out in their own name. HEX is completely different in this regard. His Twitter bio directly says “40% APY and 3866x price increase in 558 days”.
They also launched a campaign called #HEXBoughtThis on social media. Here moneymakers or early investors flex their fortunes purchased from HEX earnings. However, HEX has been advertised in newspapers, magazines, billboards and airports. All these campaigns were focused on showing how much its price had increased. The approach is the same as any get-rich-quick scheme to satisfy the greed of ordinary people.
Website claims crypto investors will make “life-changing wealth”
Original projects with strong products do not focus primarily on the increase in market prices for marketing purposes. The website of Bitcoin and Ethereum does not discuss the price, as they serve a purpose. Making money for investors is a byproduct of the larger purpose these projects serve.
HEX buyers are encouraged to lock in their capital for a certain period of time. There is a heavy penalty if someone unlocks them before the lock period expires. This effectively reduces the token supply in the market. Demand is brought in through FOMO with an aggressive marketing campaign.
Staking rewards
The website, in writing, shows a 38% stake reward. The sole purpose of staking HEX is to reduce supply, which puts upward pressure on the price of HEX.
The debate over whether HEX is a scam is a hot topic of debate among the Twitter community. Besides critics, the project also attracted fierce supporters. Key industry leaders say HEX is a zero-scam scam.
HEX hit an all-time high of 0.51 in September 2021. It’s down nearly 94% from its all-time high. Most scam projects in crypto do not survive the test of bear markets. Will HEX survive the current bear market or go to zero? Only time can answer that right now.
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