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Lately, I've been getting a fair amount of comments regarding Pulsechain and it was a good time to deal with hard cold facts regarding Pulse and its viability on a macro scale against other EVM-based smart contract chains. This video won't go over all issues and problems regarding Richard Heart and Hex in general from a technical viewpoint, there is too much stuff to go through for a single video.
Trustworthiness of Richard Heart
With every project that holds lot of centralized power, you have to put lot of faith and trust in leadership. In this situation that is Richard Heart, who has very dubious past; including history of a being the criminal known as "Spam King" who was sued by Peacefire webmaster Bennett Haselton and won the case against Mr. Richard Heart. Is hard to estimate how much damage spam/junk mail stuff can do and how many people were victims of it, but it puts a question on integrity of the individual by participating on stuff like that.
- According to some sources he fled to Panama to avoid other types of financial charges, which explains multitude of different passports.
- Anti-Aging promotion that he volunteered at Methuselah Foundation, which seems to be rooted on pseudoscience.
- Making several claims while promoting Hex, that could be potentially classified as misleading or scam-adjacent activities.
The Hex smart contract itself is not exactly a security risk or a drainer contract, so fundamentally theres nothing wrong with that, but perhaps within the framework how its marketed is the issue rather. Also it needs to be understood that at no point in Whitepaper it was stated at Richard Heart was the owner of the origin address and he would use the ETH on the address for his selfgain.
Current Valuation of HEX
As of this moment Hex is down -92.75% from its All-time high, now most coins are down are somewhat similar numbers outside from top coins like BTC, ETH and BNB for instance. The issue here is that HEX is merely based on trust at its core, if pulsechain succeeds, it won't have impact on Hex price, if pulsechain fails then its gonna lower trust on Richard heart and by that proxy the price of Hex too likely.
- Hex will exist also in pulsechain, however if fees are lower that means people are gonna be more active with withdrawals and stakes, which may lead to faster decline of the smart contract. We saw this with Tron based Smart contracts that were using modified versions of Hex.
- Other issue is that hex has zero governance power on Pulsechain and even if it did, it would be mostly controlled by Richard Heart.
So i don't see very strong synergy between these two projects sadly, which is failed oppoturnity.
So What are the Issues with Pulsechain?
Now Lets tackle some fundamental problems with Pulsechain, which are many. I will try to keep it simple and short, since i don't want to go through every bit of detail about the project that don't matter on macro scale.
- This project that has been around at least 16 months (in planning probably longer) still haven't produced a litepaper, whitepaper or even a single paper for the Pulsechain.
- Lot of vague information regarding what will the max supply will be, who are initial validators and how many of those validators are owned by Richard Heart and his team.
- The Main utillity of PLS is the gas fees (which are marketed as low, so you don't need much) and then there is burning mechanism. However if we look at historic data, i.e - first deflating project in Ethereum, Bomb has been declining at steady phase despite shrinking the supply over time. Deflation is good mechanic to keep price improving, but if main utillity is not there, its definitely not enough.
- Copying NFT's and ERC20 tokens are not legit and not acknowledged by devs in Ethereum. In historical context when tokens were copied over to Ethereum Classic - they were worthless and they were also worthless in Luna Classic too, so saying there is price speculation is absolute bullshit.
- PulseX which is the AMM market for Pulsechain and probably leading dapp is ran by Richard Heart and his team (most likely) and they market that they don't want competition, real reason for that is that 0.01% of all transfers go to a special address which is likely owned by Richard Heart (hes gonna use this to dump on people obviously).
- Pulsechain Bridge is questionable, since it has no documentation of the funds nor an audit as of now. There is little incentive to move real tokens from Ethereum to Pulse to provide liquidity, because you can do that already on multiple other chains like Polygon, Avax, Optimism etc. - the yield farming has poor incentives.
So my feels are that lot of the things designed here, whatever its validator fees or PulseX dev fee are inherintly engineered to make Richard Heart more money than actually moving funds to a DAO or Treasury, which could have direct benefit for longetivity and attractiveness of the chain as a whole.
