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The first high-interest blockchain certificate of deposit, HEX is a highly controversial crypto project that markets itself as a high rewards crypto investment bank.

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HEX is a cryptocurrency project that markets itself as a crypto investment bank. Its founder and CEO, Richard Heart, claims that the crypto coin, HEX, is a far superior store of value than Bitcoin and guarantees Hodlers rewards for holding the coin. This ambitious statement by its founder has also turned it into a subject of controversy, with many skeptics decrying it as a Ponzi scheme.

Yet, HEX indeed has incredibly enticing rewards, so any investor would definitely be curious to find out if it is a legitimate investment or a scam. Read on as we dissect the facts for you.

Created in 2019 by Richard Heart, HEX is the first high-interest blockchain certificate of deposit, essentially the crypto version of a bank fixed deposit. 

HEX users can stake HEX tokens for a share of the new HEX coin issuance which comes from its annual inflation. During its launch in 2019, HEX airdropped free HEX coins to Bitcoin holders who could then claim HEX through the 

 as a transaction layer for sending and receiving HEX tokens and interacting with the HEX smart contract, with its consensus code and staking mechanism contained within the HEX smart contract itself. HEX claims that this blockchain architecture allows it to be a more efficient and user-friendly version of Bitcoin.

HEX is a new type of cryptocurrency that utilizes its Proof of Wait (PoWa) protocol, which allows HEX holders to earn interest on their investments by staking their tokens in the HEX 

, it’s referred to as a coin on the company’s website. As an ERC-20 token, HEX can be stored in any Ethereum-compatible wallet such as MetaMask.

To receive interest payments, HEX holders must wait a certain amount of time before they can unstake their tokens and withdraw them from the smart contract.

The interest payments are made in HEX coins, which come from an annual inflation of 3.69% that’s applied to all existing HEX coins. Inflation only occurs when a HEX coin is minted, and HEX is only minted when the staking period ends — which leads to delayed inflation. When 100% of HEX coins are staked, HEX stakers will earn 3.69%. 

, currently, only 10% are staked. Hence, HEX stakers get to earn around 40% APY. 

The amount of HEX a holder can earn depends on how much they stake, as well as the length of the staking period. The more you stake, the more you earn; and the longer you stake, the more HEX you'll earn as well. The staking period is flexible, from 1 day up to 15 years. 

Even if you choose to stake for 15 years, you can divide your staking periods via the 

, which enables you to cash out your mature stakes regularly. When you reinvest the principal interest after cashing out your stakes, you’ll be able to continuously grow your passive income. However, early and late “unstakers” are charged penalties. 

Besides earning from HEX coin issuance, stakers can also earn shares whenever they start a new stake. Shares allow stakers to earn back their principal interest, plus additional bonuses and interest. Every share is burned once a stake has ended, which means the share pool is constantly dwindling. Hence, HEX recommends staking early and long to earn high ROI.

Apart from staking, HEX also offers a referral program that incentivizes users to earn commissions for referring new investors to the HEX platform.

HEX has a self-reported market cap of $18.9 billion. However, the CoinMarketCap team has verified HEX’s market cap to be closer to $5.79 billion. HEX is currently priced at $0.0334 (as of November 13, 2022), which is a >25,000% increase from when it first started trading in December 2019, at $0.00013. 

 HEX will cross the 1-cent mark in less than 2 years, reaching around $0.15 in 2024, and growing to $0.60 by 2030. PricePrediction has an equally bullish outlook on the token, expecting a price appreciation of 

, however, is not as upbeat about the future of HEX, and believes that the token is overvalued and will eventually crash.

Is HEX Crypto a Good Investment or a Scam?

Given the hype around HEX, many people wonder if it's a good investment or a scam. In fact, its official site even has a page dedicated to why it isn't a scam. That claim alone, of course, should certainly not be your basis for confirming whether or not it’s a legitimate venture. 

There are several points to consider when deciding whether or not HEX is a good investment.

Here are a few reasons why HEX could be considered a good investment:

While there are some compelling arguments that HEX is a good investment, there are also some arguments to be made that it's a scam:

. Here are some things to keep in mind when buying HEX on decentralized exchanges:

Despite these drawbacks, DEXs are the only way to buy HEX coins at the moment.

HEX aims to revolutionize the DeFi space by being the very first certificate of deposit to promise high guaranteed yields for its investors. At first glance, it may look like a great investment opportunity. However, all that glitters is not gold. Several red flags point to HEX being a possible scam. Even if it may not be, typically, projects like HEX that promise high returns also carry equally high risks. 

With that in mind, always do your own research before investing, and if you decide to invest in HEX, start with small amounts, as recommended with any new investment.

What Is HEX: Crypto Scam or Great Investment?

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