HEX founder Richard Heart: Bitcoin price will crash 85% from its highs, HEX is not a Ponzi scheme
December 2021 marks two years since the launch of the HEX project. But so far, this name continues to divide the community with many conflicting views. In it, founder Richard Heart constantly promotes and promises many good things about the project. He was even willing to defend HEX against accusations of being a scam project. Meanwhile, he also speaks about Bitcoin price.
Founder Richard Heart explains why this project is not a scam
During the operation of HEX, Heart strives to push the project up, including promises of large profits for HEX holders in certain periods through a staking plan. With Heart, the project seems to be a system that is truly unique in the crypto market.
However, the project has many critics because they believe that HEX is operated similarly to the Ponzi scheme. At present, Heart has actively discussed the issues. He meant to say that this is not the actions and behavior of fraudsters, especially during the nearly two-year period of operation. However, given the seemingly unreal benefits, the controversy surrounding HEX is hard to abate.
Heart likened the fraud allegations against HEX to what happened to Bitcoin, especially in its early days.
To address concerns about HEX’s “Certificate of Deposit” mechanism and the unsustainability of the high payouts it generates, Heart said reliance on third parties to generate yield is how people lose money. Adding that this concept is counter to the essence of cryptocurrency.
“If you get yield from, as you said, some of these people, you give them the coins you hope they pay you back some interest, that’s how people lose their money. That is the opposite of why cryptocurrency was invented.”
He named a series of exchange hacks and scandals to illustrate his point, including Mt. Gox, Quadriga CX, and two attacks on KuCoin and Binance.
Heart then said he designed HEX to fit the spirit and the way crypto works. In it, users do not rely on centralized third parties to generate profits. In his mind, this was the opposite of a Ponzi scheme.
“You mint your own rewards, and you hold your own keys; no one can stop it, no one can turn it off. You can’t turn the contract off, and you can’t turn the trading off; only you can mint your rewards. It’s beautiful, and it’s perfect; it’s the opposite of a Ponzi scheme.”
Even so, critics have made similar accusations against HEX. They claim that the tokens are minted like a miracle. In it, newer coins are used to pay interest on already existing coins.
Richard Heart argues that Ponzi schemes fail when investors owe something that cannot be repaid. He added that HEX is designed so that users can always create what they owe.
“In this system, you will always be able to mint yourself the HEX you owe yourself. It can’t possibly collapse in that way.”
Bitcoin price will crash 85% from its highs, this time is no different from past
Despite the controversy, Heart firmly explains why HEX is comparable to other established cryptocurrencies like Bitcoin and Ethereum. He also mentioned BTC and its price.
Bitcoin has historically corrected 85% from its highs, and right now, the coin is still in a bear market, said Heart.
“I think Bitcoin will tap $10,000 from its high of $65,000 because that’s what it normally does; it drops 85%. Ethereum usually drops 95% because it has lower liquidity, so it acts like a leverage position on Bitcoin, to some degree,” Heart told David Lin, anchor for Kitco News.
Heart doesn’t agree with the notion that more institutional adoption of Bitcoin will likely make the market less volatile.
“In a reflective system, you have a parabolic rise up,” he said. “When you finally fall out of the parabola, the rule of thumb is that you drop 85% of the move. But in Bitcoin, you don’t just drop 85% of the move normally, and you drop 85% of the total. So we have seen hockey stick run-up, fall out and drop 85%, over and over again.”
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