Ethereum-based Hex’s (eHEX) market capitalization plummeted by greater than $1 billion after Richard Coronary heart, the controversial determine behind the venture, described it as an illegitimate model.
Coronary heart’s controversial assertion
In an intensive Mar. 10 post on social media platform X (previously Twitter), Coronary heart renounced eHEX, affirming that solely the HEX on Pulsechain was real.
In keeping with him:
“I’ve advised you all this earlier than, however seemingly a few of you don’t pay attention so properly. So I’m telling you once more. HEX is the HEX on PulseChain.”
In his argument, Coronary heart said that the HEX on the Ethereum chain was subjecting customers to exorbitant fuel charges, thus siphoning off their funds. To buttress his level, he highlighted Etherscan information exhibiting that HEX community members have spent greater than $50 million in fuel charges on the Ethereum blockchain.
He mentioned these charges ought to have been spent shopping for the HEX on PulseChain. He added:
“HEX is significantly better than eHEX (the HEX on Ethereum.) Why? Gasoline charges. Liquidity. Slippage. Widespread sense. Why would you pay a thousand {dollars} to finish stake as a substitute of pennies?…What if all new consumers selected HEX as a substitute of eHEX? What if all new consumers selected HEX as a substitute of splitting their power?”
Coronary heart’s critique of Ethereum goals to encourage eHEX holders to transition to PulseChain.
Launched final yr as Ethereum’s exhausting fork, PulseChain has seen restricted adoption, with its quantity within the earlier seven days at $472 million. Ethereum recorded above $20 billion in buying and selling quantity throughout the identical timeframe.
HEX value
Following Coronary heart’s assertion, the Ethereum-based model of the HEX token fell by greater than 60% to $0.00419 as of press time, in accordance with CryptoSlate information. Because of this, the venture’s market capitalization plunged to $727 million from greater than $1.8 billion.
Alternatively, PulseChain-based HEX noticed its value enhance by greater than 5% to $0.0199, in accordance with CoinMarketCap data.
This various value efficiency displays the controversies the venture has witnessed throughout the previous years.
Final yr, the SEC charged Coronary heart with conducting an unregistered securities providing with the issuance of HEX in 2018. The lawsuit named all of Coronary heart’s crypto ventures, together with HEX, PulseChain, and PulseX, describing them as fraud.