Read this article BEFORE buying HEX – An honest review of what is HEX, what features indicate is might be a scam, along with history and how it makes money.
Is Hex Coin A Scam?
Before you buy Hex Coin, it’s sensible that you read this detailed and honest review to discover whether it’s a worthy investment. Is Hex Coin a pyramid scheme? Not exactly. Is Hex Coin a scam? No.
However, please don’t let this information dupe you into thinking that Hex Coin is a legit investment opportunity. Hex Coin might go down as one of the world’s best well-executed and marketed cryptocurrency Ponzi schemes.
It flaunts plenty of features that lure people into buying the coin for fast returns, which only ends up increasing the founder’s bank balance. It is one of the only cryptocurrencies I have seen using ads to advertise in buses, taxis, and magazines to entice new users aside from the typical crypto fanatics.
Hex immensely promoted this coin to users outside the crypto world, and this gave me the desire to review it comprehensively.
I was astonished at how sensibly it’s designed to enrich the founder. Hex is crafted in a way that lures others to buy rather than sell. It also tries to prevent legal examination.
So, before investing in Hex Coin, please read this review to the end.
What is Hex Coin?
Hex is a crypto token that launched on the Ethereum network in 2019. This website markets itself as a platform where users can generate 40% yearly through certificates of deposit (CD). However, it’s almost similar to previous crypto schemes, such as Bitconnect that exited the market in 2017.
Indeed, it seems like Hex’s founder used Bitconnect as a base to improve the scam. Hex Coin is, however, cautious with its product design features and marketing tactics to dodge legal snags and seem legit.
Hex dedicates a whole page on its website describing why it is legit. They also generously educate users on what makes products pyramid schemes and illegal Ponzi schemes and show why Hex is not one of those products.
Ideally, it’s hard to find a legit investment product dedicating a whole section educating potential users on scams and why their product is one of the most legit.
In my opinion, Hex aims to make this information available to SEC or other financial authority law enforcement officers who may come across the company on the internet to avoid investigation.
Currently, there is plenty of unclear stuff in the crypto industry because this business is largely unregulated. SEC only happens to kick in when investors start to complain a lot and the product fails.
The mere fact that Hex users are receiving interests via assets controlled by Hex means it’s hard to classify the company as a pyramid or Ponzi scheme legally.
From its marketing materials, Hex alleges that two auditors have comprehensively audited its contract. What does this audit mean to an ordinary user? Well, you perhaps think that a skilled auditor visited Hex, reviewed it, and discovered it’s a legit company.
Well, that’s farther from the truth because auditing means a different thing in the cryptocurrency world. Simply put, auditing in the cryptocurrency industry entails assessing the computer code for errors. Keep in mind that having a detailed and bug-free code doesn’t essentially mean that a site is legit.
Of all Hex scam allegations, none disputes the fact that Hex Coin often lures members to buy the coin to increase or sustain its token price.
How is Hex Coin Performing?
Hex’s price has shot up in 2021 as it has roughly gained 3,400% since the start of the year. This digital coin has continued to attract crypto-investors, thanks to its incredible certificates of deposits (CDs). It also promises users great returns if they lock up their holdings for a period that runs between one and 5,555 days.
Currently, they provide an average annual percentage yield (APY) of 40% based on the time you decide to hold your tokens. If you wonder whether Hex’s value will rise or fall, it is worth mentioning that cryptocurrency is a highly volatile industry, so anything can happen.
Who is the Founder of Hex Coin?
Hex’s founder is Richard J Schueler, or Richard Heart, as he is popularly known. Although using a pen name isn’t a crime, Richard uses it to hide from previous shady businesses he has participated in, such as spamming about anti-aging pills and Viagra.
At some time, he was spamming courses on how to spam and evade tax payments on the spamming earnings. A great marketing strategy used by Richard Schueler in most of his schemes is Fear of Missing Out (FOMO).
In this publication, Richard says he is a 23-year-old multi-millionaire who can help people learn how to spam millions of people daily. In his blog, you can get other scam businesses he has been involved in, such as selling sub-par stereo equipment he didn’t own.
Over the last few years, he has had a unique public persona doing interviews, podcasts and publicly challenging other individuals about their engagement in cryptos. He has a massive following on social media channels, which turned out to be a blessing as they were the first set of people to buy his tokens.
Ironically, Richard earlier labeled all other digital coins a scam, except for Bitcoin. However, he changed his mind and decided to venture into this business.
Is it possible for scammers to reform, or are they always on the move strategizing on the next scam? Well, because the crypto industry is anonymous, Richard has settled in this business to fatten his bank account.
Richard has indeed enriched himself. He often promotes Hex by flashing his wealth and amusingly linking his success to his products. Yes, this business has been remarkable for him.
How Hex Coin Makes Money
First things first, Hex Coin will not help you make money. The interest you receive from a bank, for instance, often comes from economic activities. You deposit money into the bank, the bank loans out the money, the borrower returns the money and interest, and later the bank pays you a part of that interest.
Banks are created in a way that they capture the spread between long-term and short-term interest rates. Their core business is to borrow short and lend long, which is why they have checking and savings accounts. Banks work by merely leveraging your money.
When it comes to Hex, it doesn’t have an existing economic activity, meaning they don’t offer genuine interest. Instead, the Hex contract code involves producing new inflationary tokens yearly and later distributing the inflation to members that have agreed to lock their tokens for a given period.
Hex awards users who agree to lock up their tokens with half the penalties of individuals who forget to unlock the tokens within two weeks of the constituted date or those who fail to unlock theirs early. The other half goes to Richard.
In simple terms, the Hex contract’s main objective is to reallocate value from some token holders to others. As you can see, it doesn’t technically look like a pyramid scheme, but it somehow resembles one.
What’s more, inflation is not electronically produced like it’s the case with major cryptocurrencies, such as Bitcoin. Instead, Hex’s inflation is random and majorly exists to generate money from nowhere to pay users.
Think about this scenario: If equity splits shares, there is no way that the stock value will double.
You may decide to buy $5,000 worth of arcade tokens and generate extra arcade tokens, but if the game increases at the same rate you are apparently earning, you are not making anything.
Additionally, what happens if you want to convert the tokens into dollars and the arcade owner informs you that you need to sell your tokens to other individuals in the street. Can you take this deal?
In Richard’s case, he could have come out clear and said that he would add a zero to all locked wallet balances yearly. But does this make you 10x richer? Not at all. But why does Richard use this strategy to dupe many users?
Remember that your Hex token balance may be growing, but it doesn’t essentially translate to real earnings. This is one of the reasons why Richard and his team spend most of their time enticing new buyers to maintain the token price.
Features Indicating that Hex Might be a Scam
How Hex Started
Richard carefully designed Hex so that it dodges several legal tests of typical Ponzi and pyramid schemes. For example, it’s hard to label it a pyramid scheme or multi-level marketing program as it only has one referral level.
Technically, it doesn’t have a Ponzi scheme because only new members pay off the old. It also doesn’t assure returns. Instead, it says a code determines what members receive. At the bottom of the website, Richard puts a disclaimer, which he probably wants to keep legal officers at bay.
Supply Reduction
This feature makes Hex seem like a scam. Though you can deposit your funds, you cannot withdraw. By requiring users to lock up their tokens for several years, lowers the float and eliminates the selling pressure, allowing the marketing agents to have a powerful impact of pushing up the cost and enticing new buyers.
The objective is to create the fear of missing out, which raises the price and lures a substantial set of buyers. In this case, there will be sufficient funds to counter the selling pressure initiated by early promoters.
Note: Along with the pinnacle owner, early investors in all pyramid and Ponzi schemes make money. This is one of the reasons why they defend the products with no restrictions to secure their newly acquired wealth.
FOMO
No pyramid or Ponzi scheme is complete without promising wealth to its members. Hex’s website flaunts pictures of exotic vehicles and other cache products. Evidently, this is a marketing strategy designed to entice people that want to become rich fast.
Hex Token Distribution
Token distribution is highly centralized, and it should not be a surprise considering how much goes straight into the founder’s wallet. In an attempt to show there are more members than they actually are, Richard launched many wallets to hold his Hex stash.
With the Etherscan tool, you can check the top 500 token holders. Most of these were created on the same day in blocks and at the same hour. If you assess this list, you will realize it has a block of accounts comprising similar amounts.
Staking
The basic staking concept is where users hold up their tokens for a given period. For the old cryptos, such as Bitcoin and Ethereum, millions of specialized computers compete against one another to make the network secure.
When it comes to Hex staking, you will neither secure a network nor facilitate any economic activities. You will be merely agreeing to lock up your funds to avoid getting pressured to sell.
Summary: Is Hex Coin a Scam?
While most short-term Hex traders are attracted to this cryptocurrency due to its reward model, staking, and earning attractive gains originating from locked-up tokens, some investors and analysts think otherwise.
Most experts believe that Hex Coin is a Ponzi scheme because no reputable digital currency investor would search for decentralized banking services.
Additionally, cryptocurrency analysts indicate that crypto investors often search for short-term gains. Due to this, Hex’s business model is designed to fail because no holders on the platform opt for long-term investment.
Another thing is that staking is valueless to Hex crypto. Profits are typically acquired from investors to offer other investors. In simple terms, Hex functions like a scheme where money is taken from one person and given to another.
