Within the cryptocurrency industry, there are many innovative new projects that have greatly benefit crypto users and the community at large. At the same time, there have been a number of crypto projects that have been found to be fraudulent or poorly executed. This has led to suspensions within the industry when it comes to new projects and this, in turn, often breeds rumors and conspiracies within the community.
The latest of these concerns HEX, a new cryptocurrency project which has been accused by Andreas Antonopoulos of engaging in unethical behavior with regards to their latest dealings.
Is HEX a Scam?
The accusations from Antonopoulos were first made via Twitter in August 2020. In a series of tweets, Antonopoulos alleged that the HEX team offered in 10 bitcoins to conduct an interview that would paint HEX in a good light and assure the public that it is not a scam. He further claimed that he was told not to disclose the payment offer and told his followers to draw their own conclusions from the information given.
The tweet caused a frenzy on social media, with some coming out to defend the project while others doubted Antonopoulos’ claims. While the HEX team denied the allegations, they were persistently plagued by rumors of the project being a Ponzi scheme or a scam. The ERC-20 token was launched on the Ethereum network in 2019 and was built to leverage the power of DeFi which was gaining popularity.
The Recent Dump
These allegations have once again come into the forefront of crypto discussion as the price of the token has taken a significant hit. On November 19, 20202, Richard Heart, the founder of HEX, launched a 24-hour live stream event. During the events of the Livestream, the value of the token saw a 20% decline. The reason for this is believed to be the fact that earlier HEX users are offloading their reward tokens.
The HEX project heavily leverages DeFi tokens and users are rewarded with free HEX for staking other cryptocurrencies on the blockchain for a certain amount of time. An earlier batch of stakers are now receiving their rewards and it appears that they are selling them off. In fact, some believe that the reason for the livestream was to drum up more publicity so that the newly offloaded tokens can be bought by new owners.
This drop in price, however, has brought up more speculation about the validity of the project.
