Experts Issue Warning On Crypto That Will ‘Increase In Value Faster Than Anything Else In History’

If something seems too good to be true, chances are it is.

A new cryptocurrency has entered the market that is “designed to go higher, faster, and retain its value.”

However, currently, it values at $0.00 and is listed on only EtherDelta and Bidesk exchanges and haven’t made it to the market aggregating websites like CoinMarketCap.

This crypto-asset called HEX which is making such a bold statement is a fresh experiment in the market that market commentators are warning people against, calling it a “scam” and comparing it with the Bitconnect.

In 2016, the open-source crypto project Bitconnect was released with a high-yield investment program, a Ponzi, where users were to lend the value of BCC coin in return for interest payments.

Users traded their Bitcoin for Bitconnect Coin on the lending platform, where the interest payout was determined by “trading bot” and payouts were calculated as a fraction of the open and close price of BTC.

After rising to nearly $500 value, the coin plummeted below $1 after the platform administrators closed the learning platform in January 2018.

But What is HEX?

Originally known as Bitcoin HEX, this cryptocurrency is the brainchild of serial entrepreneur and marketing expert Richard Heart. On Dec. 2, 2019, HEX completed the snapshot and is now in circulation.

According to the HEX website, the leading cryptocurrency Bitcoin can be mined, sent, and received but doesn’t allow to earn interest on unless you entrust your BTC to a “centralized third party.”

Here, you need to send your HEX, claimed by the BTC users — 10,000 HEX per BTC — or acquired in exchange for ETH, to the same smart contract that minted the HEX in the first place and it credits you interest.

HEX is a Certificate of Deposit (CD) and the more the holders’ stake, the less the interest. Users who lock up a greater amount of HEX, and for longer periods, get to earn the highest rewards. HEX’s FAQ claim it will always be able to make the payouts.

Unlike Bitcoin’s fixed 21 million supply, the primary factor behind the narrative of it being a store of value, “only guesses can be made” about HEX’s supply as it is a function of “how many coins are staked.” And bonuses will further increase it.

Another issue with this project is its “origin address” that earns as much of the rewards as other users do. Though Hearst says this address is not under his control, the lack of transparency is surely a matter of concern.

As for its long term goal, HEX aims to replace gold as a store of value and credit card and payment companies. However, Bitcoin is the only cryptocurrency that has gained a high level of adoption among retailers and institutions alike and no other cryptocurrency from thousands available in the market has come even close to its level.

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Author: AnTy

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