The HEX token has lost most of its value, but the scheme of staking Ethereum (ETH) for outlandish earnings is still going strong. Now, HEX has been listed on the Bitcoin.com exchange, much to the dismay of crypto social media.
https://twitter.com/WhalePanda/status/1206295048897409024
The listing of HEX was even promoted by Roger Ver, known to have also supported Mt. Gox with his publicity. He even appeared on video with the HEX co-founder Richard Heart, to suggest trading may be agnostic to the fact that the scheme is considered the latest scam in crypto space.
https://twitter.com/rogerkver/status/1206358584050610176
The HEX scheme has been compared to BitConnect, but there are also doubts that some of the activity may be faked, to fool naive investors that the participation is large and there is FOMO about exchanging ETH for HEX.
According to a statistics site, the HEX scheme has gathered 41 million ETH, similar to the size of a large-scale ICO. This statistic is for ETH entering the smart contract, and it is uncertain if the coins come from different sources, or if they were recycled.
https://twitter.com/wisewizzz/status/1206551659381436417
HEX is extremely volatile, and there is the possibility for arbitrage between newly minted tokens and those already trading on exchanges. Eventually, the HEX price will reach equilibrium, but so far, its minting resembles the sale of EOS, which also depended on trading and minting happening at the same time.
HEX has been tanking in the past days, falling from 30 Satoshi per coin to 6 Satoshi, with the potential to crash further. The coin has a market cap of $7.7 million now, and the scheme may continue for months. The potential for an exit scam, or another HEX crash, pose an extreme risk for potential investors.
https://twitter.com/Bintoo99/status/1206247163585421313
Locking in ETH as a reward may also lead to potential losses, as exchanging the HEX back into ETH may be impossible.
