Posted 12 months ago | by Ben Armstrong
Hex Could be Pushing Ethereum Prices Higher – or Not
The ERC20 token called HEX might be behind some of the recent positive price action in the Ethereum market. While there is no way to know for sure, some commentators think that HEX is driving ETH prices higher.
The HEX tokens are also the center of some controversy. There are people in the crypto community that say the person behind, HEX, one Richard Heart, isn't on the up-and-up.
Of course, there has been a massive rush to use the Ethereum blockchain to create more than a billion USD (well over a billion, actually) in new stablecoins, which is probably a more credible theory to explain why ETH is showing strength, than HEX and Richard Heart.
Many respectable analysts are vehemently opposed to investment plans associated with HEX. The project claims to be the world's first high-interest blockchain deposit certificate and delivers spectacular ROI promises, especially to the earliest participants.
The head of this idea is Richard Heart - an always trying to get ahead entrepreneur, marketing expert, and cryptocurrency proponent. Heart spent most of last year promoting HEX, originally called Bitcoin HEX.
Basically, unlike other cryptos or tokens, Hex has implemented a unique affiliate program
that facilitates its widespread promotion of the project, and it has been working to grow the use of HEX. Clearly, HEX will benefit from anyone who chooses to enter the 'program'.
We can't say for sure if HEX is a scam or not, but any 'investment program' that offers risk-free returns (DM Government Bonds included) should be looked on with extreme caution.
Beware Simple Ideas That 'Explain' Complex Markets
With the advent of DeFi and the huge rush to create stablecoins on the ETH blockchain, the ETH market has become far, far more complex. In addition to all the new users, Ethereum may be on the cusp of challenging Bitcoin for market dominance.
Many of the people who use these new financial instruments simply don't care about BTC's legacy and want to use a platform that takes advantage of more modern platform design. This kind of thinking would also support XRP, especially as more people look to tokens as a means of making real-world payments.
The idea that HEX is behind the current uptrend (post-Feb 2020 crunch) in ETH is probably misguided. If we wanted a single factor, we would probably look at the rise in stablecoins that live on the ETH blockchain, but even that explanation wouldn't get us into a clear view of a marketplace that is evolving rapidly.
By the way, you probably should stay away from HEX. BTC, ETH, or XRP are probably much better ways to invest (or speculate) on much higher token prices in the medium term!