Yesterday, Bitcoin.com’s exchange announced that HEX would be listed on their platform, noting that they were thrilled about the inclusion. HEX refers to their appeal as “the first high interest blockchain certificate of deposit.” Essentially, users exchange their tokens for HEX, which promises more returns than any other coin because all anyone can do is stake it.
Even after only reading the sentence above, you should be able to tell why people are calling this a scam. If something promises more money with less work, and has no other fundamentals, it is probably too good to be true. Regardless, here’s a bit of background info on Bitcoin.com, HEX, and why they are collaborating.
Bitcoin.com is sketchy
We have done an analysis of Bitcoin.com’s history in an attempt to give new users of the space a resource to verify its legitimacy. Because of how we are conditioned in a world full of corporations, it would be natural for people wanting to learn about Bitcoin to go to Bitcoin.com. As crypto enthusiasts know, Bitcoin isn’t owned by a single entity and therefor has no one official URL.
Roger Ver acquired Bitcoin.com early in Bitcoin’s existence, tried to sell it to various people with no success, then decided to take it into his own hands. Since then, the site has been loaded with links to casinos, a lack-luster exchange, a LocalBitcoins rip-off and most importantly, Bitcoin Cash links everywhere.
I’m not here to say whether Bitcoin Cash is a solid project or not, but people learning about crypto would expect that to be all over bitcoincash.com rather than Bitcoin.com. When users buy crypto with cash on Bitcoin.com, the purchase defaults to Bitcoin Cash. Almost every news article on the site finds a way to plug Bitcoin Cash and Ver is very transparent about his preference of Bitcoin Cash over Bitcoin.
So, there are two easy conclusions that anyone can make about Bitcoin.com: It fishes for naive people looking for information on Bitcoin and shills Bitcoin Cash to them, and it is not close to a representation of the Bitcoin community in any way.
HEX is even more sketchy
HEX is founded by a YouTuber and investor who goes by the name Richard Heart. He is an excellent salesman and his followers look towards him for financial guidance as he wears a diamond chain with a hand gripping cash during his videos.
He is also the only person who pitches HEX, which claims to be the first high interest blockchain certificate of deposit. The main idea behind the token is that people exchange their crypto for HEX, which will be mostly staked until a date referred to as “the big pay day.”
There are no mentions of what HEX can accomplish in terms of fast transactions or utility, only that it will make anyone who buys it early rich. Originally, the HEX website said that it was designed to give everyone 10000x return, but has since been changed to “increase in value faster than anything else in history.”
Just like BitConnect, the coin capitalizes on crypto enthusiasts dreams of high returns. There are protocols in decentralized finance where you can lock value and get returns upwards of 10% APR, but even with that return, users are taking on risk. There is always some sort of risk to reward and Heart presents HEX as pure rewards with a lack of fundamentals.
The most obvious risk here is that HEX buyers will be handing over their Bitcoin private keys, Ethereum for a coin that they won’t be able to sell if the price crashes.
Why are Bitcoin.com and HEX working together?
On the same day that Bitcoin.com Exchange listed HEX, Ver and Heart had an hour long discussion on YouTube that included topics like Bitcoin Cash and HEX. There was essentially no criticism about HEX from Ver and no criticism about Bitcoin Cash from Heart.
Ver spends a lot of time on social media promoting Bitcoin Cash, and possibly sees keeping Heart accessible as a good thing for his business endeavors. Bitcoin.com is nowhere to be found on CoinMarketCap and could use a bit of help through influencers. The tweet below is an example of their bad press.
Furthermore, Ver is one of the only people defending the integrity behind HEX. Today, he posted on Reddit,
“HEX looks like a very BAD investment, but I don’t see how there is a scam involved.”
This in itself is ironic because the whole purpose the coin is to be a good investment. If a friend of the coin’s creator and lister of the coin says that the coin which is designed to bring high returns is a bad investment, it’s probably time to exit before they exit on you.