This Crypto Is up 37,000% – but Is It a Scam?
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The 2-year-old cryptocurrency project gives 38% staking rewards. Is the project legitimate or a scam?
The HEX token is based on the Ethereum blockchain. Their website says they are the first blockchain certificate of deposit. Those who stake HEX tokens are given an average of 38% returns. The figure is lucrative because most US banks do not provide more than 2% annual interest.
Who is the founder?
The HEX was founded by Richard Schueler, who adopted the stage name Richard Heart. One of the steps to fundamentally analyze any project in Web3 is to check out the history of its founder.
Twitter’s name of the official account reads the gain in price and high staking rewards. There aren’t many genuine projects that focus on price gains as much as HEX does. Generally, projects care about building the best services for their community. Their social media handles do not market how much the token’s price increased, let alone shout it through their handle’s name.They also started a campaign #HEXBoughtThis on social media, where shillers or early investors flex their wealth bought from HEX gains.
The website, as of writing, shows staking rewards of 38%. Who gets the staking reward? In the proof-of-stake consensus mechanism, the validators deposit a certain amount to the smart contract as collateral to keep the blockchain secure. They are rewarded for their up-time and are slashed for remaining inactive for a long time.
While there is no such thing with HEX, the stakers do not stake their HEX to secure the blockchain or validate the transactions. The only purpose of staking HEX is to reduce the supply, which puts upwards pressure on HEX’s price.
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