$HEX has dropped by 35% from $0.0083 to $0.0054 in the past 24 hours. Hex founder Richard Heart and three entities were charged by the SEC today. Learn more -
Key Points:
$HEX is down over 35% in 24 hours.
The SEC is suing Richard Heart, the founder of HEX, for fraud.
$HEX is trading at a multi-year low.
Hex ($HEX) has crashed by 35% in the last 24 hours after the SEC announced that it was suing Richard Heart, the project’s founder, for selling unregistered securities offerings and defrauding investors. $HEX is an Ethereum-based project that offers user stalking rewards and various DeFi features. This post will tell you what HEX is, how the SEC’s lawsuit against Richard Heart impacts the token and highlight some HEX price predictions.
What Is HEX?
HEX is a cryptocurrency launched in 2019 on the Ethereum blockchain. It is a decentralised finance (DeFi) project that allows users to stake tokens for a pre-agreed period of time in return for rewards that have, at times, been higher than those offered by competitors. The HEX website states that staking $HEX returns an average of 38% annually.
HEX has a limited inflation rate that is designed to prevent over-supply from reducing its value - although this sounds good in reality, the price action suggests it hasn’t worked.
According to the SEC, the HEX founder, Richard Heart, once said the project was “the highest appreciating asset that has ever existed in the history of man.” The core use case of HEX is interest earning. During the launch, the project was criticised by some people who said it resembled a Ponzi scheme that relied on aggressive marketing and a constant flow of tokens from newly onboarded users to sustain itself.
Who Is Richard Heart, And Why Is He Relevant To HEX?
Richard Heart, 43, is a U.S. citizen with a big reputation in the crypto space that he has built by launching HEX, Pulsechain ($PLS) and PulseX exchange. Heart has personally promoted $HEX and $PLS through various mediums.
As is often the case with crypto projects that one person fronts, any negative news about them tends to weigh heavily on the token. As a result, the SEC accusing Heart of fraud is about as bad as it gets in terms of news for $HEX.
HEX Price Today: What’s Pushing It Down?
$HEX has dropped by 35% from $0.0083 to $0.0054 in the past 24 hours. If we zoom out, the token has lost around 90% of its value in the last 12 months and is heading towards an all-time low. The short-term price dump is a result of the SEC’s lawsuit against Richard Heart.
The SEC Vs HEX’s Richard Heart
The SEC has accused Richard Heart of three unregistered securities offerings amounting to over $1 billion and personally defrauding investors of over $12 million. According to the SEC, Heart spent the ill-gotten gains on lavish goods such as a Ferrari, several Rolex watches and a 555-carat black diamond called ‘The Enigma, worth millions of dollars.
The SEC pointed out that the value of $HEX has dropped by nearly 100% from its peak in June, essentially rendering it “worthless”. While it’s clear that today’s Hex price drop is due to the SEC’s case, the long-term trend has been looking grizzly for a while. $HEX hit an all-time high of $0.51 during the 2021 bull market and has been trending down ever since. It did experience a brief spike in early 2023 which saw it recover to $0.01, but it has since lost 95% of those gains.
Heart and Hex are yet to release an official response to the SEC’s accusations.
$HEX has hit a yearly low following the SEC’s move against Richard Heart.
HEX Price Predictions
HEX’s price has been downtrend since September 2021, and the SEC lawsuit could be the nail in its coffin. Nonetheless, some traders find opportunities when assets are at their lowest valuation, so looking at a few HEX price predictions could be worthwhile.
Changelly has issued a positive outlook for $HEX. They expect it to bounce back from its recent drop by the end of August and continue to rally into 2024. They see $HEX jumping by 270% to $0.02 in 2025 but don’t forecast a new all-time high this decade.
Coindex is relatively bullish on HEX. Its HEX price prediction for 2024 is mixed with a yearly low of $0.005, basically no growth from today’s price, and a maximum price target of $0.014. Coindex doesn’t see a new all-time high on the horizon for HEX’s price and has set its maximum price target by 2030 at $0.04.
Stormgain has forecast $HEX to grow every year throughout this decade. By the end of 2023, they expect a rebound to $0.07 and $0.1 by 2025. A new all-time high is possible but far from guaranteed by 2030, according to Stormgain.
These HEX price predictions may not have entirely considered the SEC case, which could explain their bullish outlook. It’s also interesting that they seem relatively confident that even if HEX forms a long-term uptrend, the possibility of it hitting a new all-time high is unlikely.
Other HEX News
There haven’t been many big HEX announcements recently, but a few changes to the official website and Richard Heart’s online activity are noteworthy.
HEX Website Diamond Flex
In a bizarre turn of events, the HEX official website has added a section that boasts about ‘The Enigma’ diamond that Heart is accused of purchasing using fraudulently obtained funds. The website claims that Heart has since renamed the precious stone“The HEX.COM Diamond".
Total Value Locked (TVL) $0
Although the HEX website remains very positive about HEX, with several headings highlighting its yearly return potential, the data trackers tell a different story. According to HEX.com, the TVL in $HEX has dropped to $0.
Heart Goes Silent Days After Criticizing Curve Finance
Heart’s radio silence since the SEC case is unusual, considering how active he has been on Twitter over the past few days. The recent DeFi exploit that hit Curve Finance has seen millions of dollars vanish, and Heart was openly mocking $CRV on Twitter less than two days before the $HEX crash.
Richard Heart was openly poking fun at $CRV days before $HEX crashed. Source: Twitter
Conclusion
$HEX was controversial when it launched, with many people doubting the sustainability of its staking rewards model. The $HEX token’s price has been in a downtrend since late 2021, and today’s price drop following the SEC lawsuit announcement means it has almost lost 100% of its value. Some HEX price predictions expect the token to mount some sort of recovery, but it has to be said that the charts could get even uglier if the accusations levelled by the SEC against Richard Heart turn out to be true.
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