Is HEX a Ponzi scheme or any other type of scam?
3 min read
Is Hex token a Ponzi scheme?
I will try to gather all the information for you directly from their website and let you make your own decision.
And we are off on this great adventure, luckily for us “Is HEX a Ponzi scheme” is on their frequently asked questions.
doesn’t look good if this is a frequently asked question
well there you have it, it’s obviously not a Ponzi scheme. /s
the yield which is paid to stakers comes from only from inflation and not other users you mint your own rewards by interacting with the contract, you only owe yourself to mint your own rewards in the future.
So far the website has me pretty convinced that this is definitely not a Ponzi.
But just to be sure lets look at how HEX works, we will also get this directly from their website.
It’s better than bitcoin, this is huge!
HEX has these things called shares and you get shares by locking up your HEX, the longer you lock up your HEX the more shares you get. After you reach your un lock period you get all your shares which convert to your original HEX + earned interest.
Now it’s important to now that you can’t un lock your HEX once locked until you reach your designated period. Looking at the image below you can lock up your HEX for up to fifteen years but if everybody else unlocks their HEX before you and cashes out crashing the price and making HEX worthless at least you will still have a huge bag of HEX that you can unlock in Fifteen years.
this is great we have a huge bag of HEX from locking it up and receiving rewards!
Now all we have to do is figure out what gives HEX it’s value, surely it has a great use case that causes the price to continually increase and make our growing bag of HEX worth more every day?
Can you use HEX as a currency? NO – nobody accepts worthless tokens as payment
Can you use HEX to pay transactions fees? NO – HEX is built on Ethereum so you have to use Eth for transactions
HEX has only one use and that is to lock it up and earn yourself more useless HEX.
you might be asking yourself “HEX has no use case currently other than creating more HEX but surely in the future something is planned?” well lets see what the website has to say.
well looks like it’s already perfect.
Anyway, do you think HEX is a scam?
submitted by /u/Odlavso
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