New reports say that the controversial Ethereum-based project, HEX, finally went live and managed to accumulate over 60,000 transactions. The project’s tokens have been in circulation for about five days now, since December 2nd.
The project was created by a YouTube personality, Richard Heart. It views itself as an interest-paying service, not unlike what traditional banks have to offer. However, the project is also controversial, and it has been for some time now. Some members of the crypto/blockchain communities see it as a referral scheme which will not gain value.
Many have also pointed out that its advertising was questionable, at best, considering that its ads emerged on The Pirate Bay. Naturally, the project also has its own supportive community, which claims to be earning rewards at no cost.
What is the project about?
In essence, the project is a contract that allows users to stake their token. Those who do it receive interest. The more tokens they lock up, the bigger their rewards, which can also be said for those who stake the project’s token for longer periods.
Those who participated in the snapshot, published on December 2nd, are already claiming their tokens. They can do so for free, although it is also possible to buy them. However, the problem is that HEX is still a new token, and like any other new token, it is a risky investment.
Like most other projects, it relies on inflation as a source of rewards, which is even admitted in its own FAQ section. For now, it sits as one of the most active contracts within Ethereum’s ecosystem, and it made 60,000 transactions in five days.
It is noteworthy, however, that most of those transactions have no value, likely because HEX was given for free in the snapshot. There are some people who have bought it in a regular way, but actual trading on Bidesk and Etherdelta comes in rather low volumes.
For now, the token has no real market value, and it remains to be seen when and if this will change. The project appears to be legitimate, and it even claims that it is not a scheme in its FAQ. However, its referral scheme remains controversial, and many believe that platforms such as Cardano or Tezos are safer, while they offer a very similar deal.