The cryptocurrency market is has a wild west atmosphere, rife with hackers, cybercriminals, and scammers galore.
The developer of a new altcoin project called HEX accused of being a widespread scam has now left the project and is sharing his thoughts about why he made the decision for a departure.
A new cryptocurrency known as HEX has exploded onto the scene over the last few weeks and was immediately subject to the extreme controversy surrounding accusations that the altcoin project was nothing more than a scam perpetrated by the projects founder, Richard Heart.
HEX has been dubbed a Ponzi scheme, a scam, and even worse, and has been compared to the likes of notorious crypto projects gone defunct like BitConnect.
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The cryptocurrencys official website even claims that the asset is designed for 10,000x returns, something that even the SEC would say fails their Howey test, which helps investors determine if an investment is too good to be true and may be a scam.
Promises of returns are an immediate red flag, especially around the cryptocurrency asset class, which is known for its infamous volatility and assets that lose as much as 99% of their value.
But HEX makes many of these bold claims to lure investors into their scheme.
In a new live interview posted on YouTube by crypto influencer Naomi Brockwell, the host speaks to former HEX developer Kieran Mesquita, who has since distanced himself from the project.
Mesquita says that he was once proud to contribute to the project but later became uncomfortable with the projects business practices and the projects founder Richard Heart. He says that the most interesting technical aspects of the project were removed, instead of focusing on marketing jargon and empty promises.
Heart is said to hold nearly half of the coins circulating supply after the first year of the projects existence. Unfair distribution that goes to making the projects founder wealthy, is yet another warning sign that the investment may be a scam.
Oftentimes, if something seems too good to be true, it often is. Projects like HEX were a dime a dozen during the initial coin offering boom of 2017, and has left many investors burned and holding investments that are down 99% or more from their initial buy-ins.
Any investors thinking about making an investment into HEX, or any cryptocurrency should do their due diligence, including both fundamental and technical analysis to understand how an asset may perform, before taking a position.
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If it looks like a scam, smells like a scam, it probably is a scam, and its best to avoid at all costs. HEX, may just be one of those projects, but only time will tell if it ends up like BitConnect and the other projects that the crypto angry mob has gone after in recent years.
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