ValteWed, Jan 19, 2022 4:34 PM
DeFying Gravity: HEX — the First Crypto Certificate of Deposit
We continue discovering the ocean of crypto projects, from the most attractive to not so unambiguous. Today we decided to take a closer look at HEX crypto — the first Certificate of Deposit, promising to make you rich through simply staking your assets.
What is HEX?
HEX is the first blockchain Certificate of Deposit that offers increased interests, the absence of minimum, and a decentralized design. It’s a smart contract built on Ethereum. HEX was designed to replace savings bank accounts by offering an option to stake HEX coins for a fixed limited time (from 1 to 5555 days) and receive the interest, which rate increases along with the staking period.
The Certificates of Deposit are the investment tools originally offered by the centralized banks. But they offer quite low-interest rates, benefiting from numerous fees and inflation. To revolutionize this concept HEX aims to monetize the time value of money and offers higher average interest rates and no bank fees and turn it into decentralized cryptocurrency. The average annual percentage fee surpasses 40%, while traditional banks offer not more than 2%.
Unlike Proof-of-Work blockchains like Bitcoin, where the network reimburses the miners, HEX rewards the stackers. It means that the mining crisis can not affect the price and cause its decline. The more tokens are being staked, the fewer of them are available for sale, so the token price keeps increasing. At the same time, if fewer people stake the token, the network increases the interest rate. Thus being a stacker always stays beneficial.
As a cryptocurrency, HEX removes the middleman from the money operations, so every user can control their own fund without the need to trust money to someone else. The network provides high security and complete decentralization. Anyone can run HEX code via numerous tools released by the development team, but no one can change it.
HEX recently became one of the most popular currencies for trading on the major decentralized crypto exchanges. Anyone can audit every transaction and address.
The Truth Engine feature helps to create a transparent investment environment as it collects the data about the stackers’ future behavior. Users get rewards for revealing what’s their staking period and when the assets are going to be sold. If investors act differently from declared they get a network fine.
So, it makes HEX the first-ever crypto that has data about the supply which is only going to be locked. It allows users to see when the biggest stakes will expire so the investor can revise the strategy. Since the launch time, HEX shares price grew from $0.56 to almost $6000 in 1 year. HEX’s price to USD so far increased 352 times. The project has over $1 million of on-chain liquidity.
Stacked assets can not be sold and this makes the network a pioneer in truly locking over $200 million for 15 years at a time. The average duration of the staking on HEX is about 5 years. Users mint their own interests and stay in control over their finance. They can get an additional interest if ending the stakes later than supposed to or get a penalty for withdrawing the coins earlier.
The project was Launched in 2019 by Richard Heart, known for his online educational efforts towards crypto and blockchain. During the first 12 months after the launch, the token price was reaching the point of stability and has dipped several times, though kept growing.
The founder is known for influencing many people by explaining crypto and his fame affected the project as he managed to gather a big and supportive community around the idea.
HEX has a total supply of 633 billion coins with 173 billion are currently in circulation.
The token inflation rate is quite reasonable and reached 3,69% in just one year. As the project is designed on Ethereum, every transaction requires paying gas fees.
HEX is available for acquiring via the Ethereum Uniswap protocol. Although it can’t be found on any centralized exchanges, project market capitalization continues to grow, and at the moment of publishing.
The tokens can be stored in any wallet supporting ERC-20 coins. But for staking, claiming and proper accounting one should use MetaMask or some of the other custom solutions.
Future of the project
Despite the big popularity of the project, some of the analysts think of it as a Ponzi scheme, explaining that no serious investors will be interested in decentralized banking services. Moreover, no real value is created by staking, and to provide profit for the investors the funds are derived from another investor, which means that once the liquidity pool is over the scheme will disappear. They also blame the founder Richard Heart for using extremely engaging language to introduce the project.
Overall, the project showed significant growth and by the time of publishing reached the market capitalization of $39 billion.