On Sunday, a outstanding member-turned-critic of Richard Coronary heart’s HEX group, Eric Wall, tweeted an intraday chart of HEX-on-Ethereum’s collapsing worth. He was dunking on Coronary heart for allegedly inflicting the HEX rug pull and crypto members on X (previously Twitter) duly dogpiled. They laughed, clicking the Like button on tweets about HEX’s supposed collapse tens of hundreds of instances.

Inside hours of Coronary heart’s tweetHEX-on-Ethereum traded 68% decrease.

Learn extra: Richard Coronary heart and the curious launch of Hex, Pulse, and PulseX

In actuality, Coronary heart didn’t rugpull HEX on Sunday. Nor has the worth of HEX declined over the previous three months.

To elucidate: HEX exists on two blockchains: Ethereum and PulseChain. Coronary heart began HEX on Ethereum however claimed emigrate his focus to PulseChain as a way to spare ‘Hexicans’ from Ethereum’s excessive charges. PulseChain, he claims, is quicker and cheaper.

For context, Coronary heart is an ex-Bitcoin maximalist who defected and created three altcoins: HEX, PLS, and PLSX. HEX is his flagship creation, that includes the power to lock up HEX on-chain for future rewards. PLS is a payment (‘fuel’) token for the PulseChain blockchain, and PLSX is a reward token for its hottest alternate.

The SEC is presently suing Coronary heart, Hex, PulseChain, and PulseX for violating federal securities legal guidelines.

HEX on two blockchains

On Sunday, when Coronary heart endorsed HEX-on-PulseChain and disavowed HEX-on-Ethereum, the worth of HEX-on-Ethereum did crash -70% intraday (-54% as of publication time). That diminished its totally diluted valuation from roughly $6.4 billion to $2.6 billion as of publication time*: a lack of $3.8 billion for HEX-on-Ethereum.

Nevertheless, the worth of HEX-on-PulseChain elevated on Sunday. Particularly, it rallied 11% as of publication time, up from roughly $11 billion to $12.3 billion as of publication time*: a acquire of $1.2 billion for HEX-on-PulseChain.

In sum, the totally diluted market capitalization of HEX-on-Ethereum did, certainly, decline greater than the offsetting rise within the totally diluted market capitalization of HEX-on-PulseChain.

Nevertheless, there are two different complicating elements that make it troublesome to conclude that Coronary heart meaningfully prompted any crash within the worth of HEX on Sunday.

No HEX rug pull, only a sluggish decline

To begin with, the launch of PulseChain coincided with a free duplication of all HEX-on-Ethereum (together with unstaked and staked HEX) onto PulseChain. Any long-term holder of HEX previous to PulseChain’s debut obtained free HEX on PulseChain. Subsequently, no long-term holder may be harmed by a decline within the worth of HEX on Ethereum versus PulseChain — as a result of they personal an equal variety of tokens on each blockchains.

Secondly, Coronary heart has constantly emphasised the long-term nature of HEX staking. Subsequently, contemplating a trailing interval of three months quite than 24 hours, the USD worth of HEX-on-Ethereum is buying and selling flat close to $0.0046. Over that very same interval, in distinction, the USD worth of HEX-on-PulseChain has elevated 60%.

Subsequently, on the entire, the totally diluted valuation of HEX throughout each Ethereum and PulseChain blockchains has really elevated by over $6 billion inside three months.

Nonetheless no excuse

This doesn’t excuse, in fact, the disastrous general decline within the worth of Coronary heart’s altcoins which could by no means regain their all-time excessive market capitalization of $85 billion. Nor does it excuse years of sketchy conduct of the evasive founder. Furthermore, it doesn’t reply questions on Coronary heart’s lavish private expenditures or diversions of the ETH and stablecoin collateral that after backed among the briefly stratospheric valuations of HEX, PLS, and PLSX.