HEX is the most controversial crypto in the space. HEX has been dubbed the Ponzi scheme, a scam, and has been compared to the likes of notorious crypto projects gone defunct like BitConnect.
If you start searching the web, you will find many articles, YouTube videos, reviews on the Internet, which will convince you that HEX is a pure scam. The people that think HEX is a scam focus on the origin address where all the funds seem to go.
Others simply say HEX detractors are too quick to dismiss the token as a scam instead of doing their research and listening to Heart explain himself, essentially accusing them of confirmation bias.
It’s possible to make a lot of money investing in the crypto world but it’s also possible to lose a lot of money. So always do your own research and don’t invest more than you can afford to lose or into something you don’t understand.
What is a HEX?
Hex is a token on the Ethereum network executed by a smart contract and the website advertises itself as a place to earn 40% per year with “certificates of deposit.” The founder who goes by Richard Heart for marketing (his real name is Richard J Schueler). He frequently presents at cryptocurrency conferences and on YouTube videos and live streams.
HEX is designed to be a storehouse of value that will replace the Deposit Sheet as a chain block of that financial product used in traditional financial markets. HEX is also designed to leverage the DeFi (decentralized finance) ecosystem in cryptocurrencies within the Ethereum network.
HEX uses the Ethereum network for the transaction layer (sending and receiving HEX tokens, as well as interacting with the HEX smart contract), while the consensus code and investment mechanism are contained in the HEX smart contract.
HEX allows the user to invest their HEX coins for a share in the issuance of new HEX coins or inflation and contains features designed to stimulate behaviors that encourage price appreciation and discourage behaviors that encourage price damage. The HEX Smart Contract penalizes investors for premature termination of deposits and rewards them for investing larger amounts of HEXs for a longer period.
HEX is distributed to Bitcoin owners through a recording of the Bitcoin UTKSO set that took place on December 2, 2019, at the height of block 606227. The distribution of HEX to Bitcoin holders is 10,000 HEKS per 1 BTC. Bitcoin owners can claim HEKS only during the first year of launch. During this period, HEKS was also obtained in exchange for ETH interaction with the HEX smart contract. At the end of the first year of launch, all HEX coins that Bitcoin owners have not claimed are distributed to other HEX users who have active deposits. HEX’s maximum possible annual inflation is projected to be 3.69% after the first year of launch.
How Hex works?
According to its own website hex.com “CDs, known as Certificates of Deposit or Time Deposits, are worth Trillions of dollars. CDs are worth more than gold, credit card companies, and cash. CDs pay higher interest than savings accounts, requiring money to be deposited for a fixed time.
Banks profit on poor customer service, early withdrawal fees, and auto-renewing you at worse rates. They pay pitifully low interest. New money is printed all the time, making yours less valuable. HEX replaces inefficient currencies, banks, and payment networks with verifiably secure peer-to-peer technology. HEX has outperformed Bank CDs because it’s nothing like a Bank CD. HEX monetizes the time value of money in a totally new way. In HEX, you’re the bank.”
Individual investors can get HEX in one of three ways
1) to prove that they own a certain amount of Bitcoin (BTC) by signing the transaction with their private key
2) by replacing Ethereum (ETH) with HEX
3) by referring a friend.
Once users have HEX, they are then encouraged to ‘stake’ the token. This earns them interest (paid in HEX), which varies depending on how long they keep their HEX staked and how much of the overall supply of HEX is staked by all users.
How to claim HEX?
Once you have HEX, you can decide to keep it, sell it or invest it. By choosing to invest in HEX, you will receive rewards. The reward model was copied from bank certificates of deposit. You can choose to stake your HEX from 24 hours to 15 years. The longer you stake, the more rewards you earn. The HEX TruthEngine rewards users for declaring how long they’ll hold and when they might sell. If you decide to end your stake early, you will be penalized.
If you have Bitcoin in your wallet before December 1/2019, you could claim it for free. You need to install MetaMask. If you have ETH and want to transform it directly into HEX, you need to use Adoption Amplefaier or use Uniswap exchange: Both are signup-free and secure, executing peer-to-peer on the blockchain.
To complete the claim, you will need to pay a small gas fee to process the claim on the Ethereum blockchain. This will only amount to a few cents worth of ETH in USD and must be on the Ethereum address where you are trying to claim HEX.
There are a few steps to follow before staking.
- Install MataMask (install the MetaMask wallet extension from MetaMask.io)
- Buy ETH (on MetaMask via the Wyre or CoinSwitch buy button)
- Trade ETH for HEX
- Stake it (visit go.hex.com, connect your MetaMask wallet, and stake HEX)
How to stake HEX?
HEX allows the user to stake his HEX coins for a share of the issue of new HEX coins or inflation. In
addition, it contains features designed to stimulate behavior that encourages price appreciation and
disincentivize practices that promote harm to the price. That is, the HEX smart contract penalizes
interested parties who terminate their pledge ahead of time and accordingly rewards them for staking
more significant amounts of HEX for more extended periods.
There is no limit to how many stakes you can have per address. According to the HEX website, if you want to accumulate the most HEX, it’s probably best to stake for as long as you’re comfortable to get the most bonus shares from the LongerPaysBetter bonus. (20% per extra year, up to 200% bonus (3x)).
The longer you stake, the more you make. Up to 200% bonus shares on top of a 10-year stake. In other words, you could 3x your shares.
- 1 month gets you ~1.7% bonus shares on top
- 3 months gets you ~5% bonus shares on top
- 6 months gets you ~10% bonus shares on top
- 1 year gets you ~20% bonus shares on top
- 2 years gets you ~40% bonus shares on top
- 3 years gets you ~60% bonus shares on top
- 5 years gets you ~100% bonus shares on top
- 8 years gets you ~160% bonus shares on top
- 10 years gets you ~200% bonus shares on top
The LongerPaysBetter bonus maxes out at 10 years.
As said, you need to have installed MetaMask wallet and Etherum. Go to go.hex.com and click connect on the top right corner to connect your MetaMask wallet. Click stake to proceed. The next step is to choose the amount and duration period. Longer stakes give you more shares which gives you better ROI. 5555 days is the maximum time you can stake. Proceed by clicking stake. Confirm the transaction on MetaMask, and your HEX will be staked after a couple of minutes.
People who stake larger amounts of HEX may receive bigger bonuses. When the stake is ending, there is 14 days period that you need to end it. That gives you enough time to end the stake when transactions are cheaper. Also, bear in mind that you will be penalized if you end the stake after 14 days. The penalty after that period is 1% per week.