HEX: a new Bitconnect?
HEX talks were dominating yesterday in cryptosphere:
What is HEX?
It's an ERC20 token developed by early Bitcoin adopter Richard Heart.
And according to project's website, HEX tokens are essentially time deposits made over the Ethereum network.
Ok, what is time deposit then?
According to Investopedia:
“A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD).
The deposited funds must remain in the account for the fixed term to receive the stated interest rate. Time deposits are an alternative to the standard savings account, and will usually pay a higher rate of interest.”
Essentially, you lock up your HEX for a fixed period (a minimum of about one year) to receive a share of the remaining tokens in the pool.
How to get HEX?
- 1. Hold Bitcoin prior to the Bitcoin blockchain snapshot, taken place Monday December 2 2019. Then claim it on project's website.
- 2. Send ETH to the “adoption amplifier” – a smart contract that converts ETH to HEX on a daily basis.
- 3. Buy on Bitcoin.com exchange.
The third point in fact, listing on an exchange, actually made HEX to the top of emerging trends. And generally the crowd reaction was like
In some sense, HEX resembles schemes like BitConnect and ETHConnect, where established coins are deposited, and another type of asset is issued.
And the interests are huge, far outpacing bank deposits.
The project’s hype page encourages users to hand in “cheap ETH” for an asset where “the price can only go up”. However, nothing ensures the actual price of HEX, and the scheme remains extremely risky.
Critics point out that Heart, as the alleged owner of HEX’s so-called “origin address,” will potentially control around 45% of the entire HEX supply just one year after the launch. This will be achieved by claiming a constant stream of HEX tokens from various types of transactions, while Heart will also keep the ETH from purchases.
On Reddit, one user criticized the move by Bitcoin.com, saying, “Judging from the voice of the BCH supporters, I think listing HEX is going to be a huge hit on Bitcoin.com’s reputation in the community. Please listen to the community and not dig this hole. It is not worth it.” On Twitter, one user wrote, “This is incredibly misguided.” Others joined the debate.
Let me stop HEX overview here and link a detailed research on it:
I'd like to see how HEX looks from the point of handy Santiment social tools.
Quite a spike indeed. The first top, on December 2, is a snapshot date for HEX 'airdrop'.
Picture says itself.
The HEX token been added to Sanbase just a few hours ago, no much onchain and pricing data (yet!), but there is already an interesting onchain piece of data available - HEX holders distribution:
Amount of HEX holders in increasing on almost any levels. Except ones having from 1K to 10K HEX mainly, they are exiting.