HEX threatens to implode as creator Richard Heart faces fraud accusations

Over the past 24 hours, the ether-based token HEX has taken a steep nosedive, trading at $0.02 at the time of writing. As creator Richard Heart battles allegations of fraud, the sun could be setting on the HEX universe.

Heavy HEX criticism

HEX was launched in 2019. Since the token dawned on the crypto scene, shrugging off the “Ponzi scheme” trait has been close to impossible. Crypto analysts were even questioning how its market cap surged to almost $1B in mid-2022, yet the coin seemingly remained “unnoticed” by the crypto market.

“In crypto, there’s a tribalism that every coin you buy is a world-changing amazing thing. Every coin anyone else buys is a scam by default.”

Richard Heat, CEO of HEX

In the last 24 hours, HEX investors have seen the token’s market capitalization drop from $3.9B to $3.7B. Its price lost 3.5%, at the time of writing.

HEX threatens to implode as creator Richard Heart faces fraud accusations - 1 — HEX/USD price chart. Source: CoinMarketCap

Mike Alfred, a crypto enthusiast, noted that the project was self-destructing after he received news that PulseChain was not going to launch

Several Hexicans have reached out to inform me that the Hex community is self-destructing rn. Apparently Pulsechain is not happening. Instead Richard is simply forking ETH 2. There are no timelines. No guarantees. Even adamant defenders are starting to call Hex a scam. Brutal.

— Mike Alfred (@mikealfred) October 19, 2022

The PulseChain pipe dream

PulseChain is the other “pipedream” that has been massively sold to the HEX community. Initially, PulseChain was to be this fast and cheaper ethereum competitor but now remains to be a fork. The PulseChain team has also announced an airdrop for all ETH holders after the fork is successful.

PulseChain has been through numerous testnets throughout 2021, all of which gave hope to the HEX community of a future reward.

HEX, PulseChain and PulseX combined is a $5 billion project, which could be catastrophic to the market if (or when) it implodes. The fact that crypto influencers promoting HEX were slapped with subpoenas by the U.S. Securities and Exchange Commission (SEC) does not ease the tension among investors.

Grounds for crypto regulations?

The events of an unlikely bankruptcy announcement from FTX and conspiracy theories that SBF was a government agent sent and funded to infiltrate the crypto sphere have left many aghast. Some crypto enthusiasts believe the SEC orchestrated the FTX saga to get ‘legitimate’ reasons to regulate crypto.

While they might, to some extent, prove to be true, the existence of privacy coins like Monero could prove to be a hurdle for the SEC.