The price of bitcoin has fallen below $20,000, down more than 70 percent from its all-time highs, while ethereum and other major crypto-currencies have suffered even bigger drops (though some believe they have spotted a $28 trillion opportunity).
Today, after one of Wall Street’s most influential business leaders warned of the “panic“Growing market panic, another controversial crypto-currency with a market capitalization of $5 billion is facing claims that it is on the verge of imploding after seeing its price drop 90% from its historical highs.
HEX, launched in late 2019 at the top of the ethereum network, has seen its price rise rapidly over the past two years, but has also drawn criticism for its system of rewarding those who keep their hexa tokens locked up and penalizing those who don’t, a version of a crypto-currency system called “staking“.
Richard Heart, creator of HEX and a strong advocate for the crypto-currency, has been accused by Protos of selling the bitcoins and ethereum used by investors to purchase HEX at launch and gutting the addresses used to collect HEX fees. Richard Heart did not respond to a request for comment before publication.
Since hitting its all-time high in September of last year, the price of HEX has fallen by 90 percent, a larger drop than bitcoin and ethereum, both of which have fallen by about 70 percent from their all-time highs.
This week, following a YouTube interview in which Richard Heart briefly discussed plans for the long-awaited launch of a new HEX-linked blockchain called pulsechain, a longtime HEX critic warned that the crypto-currency could be self-destructing as holders lose patience.
Announced last year, pulsechain was touted as a fork of ethereum that would move to the proof-of-stake consensus mechanism before ethereum itself. People who wanted to receive pulsechain’s PLS tokens as part of a “airdrop” were invited to “sacrifice“their ethereum, hexa or other crypto-currencies.
In June, about 45 percent of outstanding HEX was placed in two digital wallets in exchange for a promise of PLS coins once pulsechain launched, Richard Heart told Bloomberg at the time.
However, pulsechain’s launch has been delayed several times, and some are beginning to wonder if it will ever launch.
Several Hexicans have reached out to inform me that the Hex community is self-destructing rn. Apparently Pulsechain is not happening. Instead Richard is simply forking ETH 2. There are no timelines. No guarantees. Even adamant defenders are starting to call Hex a scam. Brutal.
– Mike Alfred (@mikealfred) October 19, 2022
“Apparently, pulsechain will not happen”, posted on Twitter bitcoin investor Mike Alfred, accompanied by screenshots of conversations with hex holders who fear pulsechain is nothing more than a copy of ethereum, now a proof-of-stake blockchain after its upgrade last month. “Several [détenteurs d’hexagones] have contacted me to inform me that the hexagonal community is self-destructing as we speak.”
Speaking to YouTuber Ivan Liljeqvist, Richard Heart said he would not commit to a pulsechain launch schedule, saying ” it’s done when it’s done “.
“We’re going to use the same consensus mechanism that ethereum 2.0 currently uses,” said Richard Heart. “I want to put [pulsechain] on the market. Even if we manage to market without massaging the timing and gas of the blocks [d’ethereum] […] I would just make a ‘direct copy’ and fix it later. Free and cheaper parts is good enough. Faster is great if you have it but it’s not mandatory.”
“People have pointed out that they found many things in this interview troubling“, says Mike Alfred of Hearts’ conversation with Liljeqvist via Twitter DM. “The implication is that all of last year’s work has been scrapped“.
However, Mike Alfred does not expect the eventual collapse of the hex to result in a terra-luna type implosion. In May, the algorithmic stablecoin terra and its supporting coin luna collapsed as investors rushed to the exit. The collapse of terra and luna sent the price of bitcoin to its lowest level since the beginning of the year and triggered a crisis in the entire crypto market.
“[Hex n’est] not as connected to the rest of the ecosystem“, says Richard Heart. “It’s almost like a shadow economy. Also, it will fail in slow motion because of the way the protocol incentivizes token locks.“
Despite the 90% collapse of HEX, Richard Heart remains optimistic; he promises that Pulsechain will happen and that he will drive up the price of hex when it does.
“Pulsechain will change everything“, Heart said in a September debate, streamed live on YouTube.