500 ETH liquidated from HEX ICO wallet, investors suspecting exit scam
- Crypto project HEX recently saw an outflow of funds from its ICO wallet, which alarmed its community.
- The project's claims of major returns made the community suspicious, but the new activities made many people believe that it is an exit scam.
- So far, around 800 ETH tokens left the wallet, with the largest transaction containing 500 ETH, leaving behind 46,000 tokens.
A cryptocurrency project is known as HEX recently saw quite a bit of community backlash, after some members noticed some unusual activity. Now, there is a fear of an exit scam among its users.
The main cause for alert among its users was a recent Reddit post that had revealed that around 800 ETH coins were recently withdrawn from the project’s ICO wallet. Meanwhile, 770 ETH were sent to two different digital currency exchanges — Bitfinex and Binance.
After people started looking into these claims, many turned to Etherscan for evidence. Etherscan, in turn, revealed that the funds started flowing away from HEX back on December 12th. This first day saw the transaction of 95 Ether coins. Larger transactions were soon to follow, however, and as much as 500 ETH was sent from the wallet this Tuesday.
The Reddit post pointed this out, stating that the funds entered Bitfinex only a few minutes after leaving HEX’s wallet. Naturally, this led many to question whether HEX is a legitimate project, or just another scam to deal with.
Is HEX another scam?
Copy link to sectionHEX itself is quite new, and it saw launch less than a month ago. However, it quickly started attracting criticism with some rather astounding claims made by its founder, Richard Heart.
The project itself operates on Ethereum’s network, and it uses the Bitcoin UTXO snapshot to do so.
Meanwhile, the claims that Heart has been claiming are suspiciously similar to what scammers would promise. For example, he said that those who invest in his token will see 10,000x returns in about two and a half years.
He pointed out that he is aware that his claims sound like a scam. But, he also explained that HEX’s design will allow the coin’s value to surge faster than any other asset in history. Still, this was not enough to erase the investors’ suspicions, and they surged even higher when he refused to reveal who owns HEX’s ICO wallet.
After the wallet sent out its largest transaction, it still contained around 46,000 ETH, which is worth $5.7 million, according to current prices.
