Ever heard of HEX?
Hopefully not, because if you haven’t, then you did not invest in it.
HEX Self Destructing
Getting 2-3 DMs like this every few hours right now. Implosion city. If any other Hexicans have concerns, please reach out. I’m here for you. pic.twitter.com/z539ma4idH
— Mike Alfred (@mikealfred) October 19, 2022
SEC Sending Subpoenas to Hexicans
https://twitter.com/mikealfred/status/1597269070491324416
Collapse Inevitable
“Hex is at 2.4 cents, down 11% day over day. Starting to look very toppy at these levels. Once it breaks 2 cents it’s unlikely to see these levels ever again. Collapse is inevitable and guaranteed by the protocol design. Abandon ship while you still can!“
HEX Price History
HEX is down to 2.4 cents from a high of 48.7 cents. That’s a decline of 95.6 percent headed to 100%.
What’s Going On?
HEX issues “Certificates of Deposit” that yield as much as 40 percent interest paid in HEX of course, not dollars.
You can “Stake” your HEX by locking up any amount for a period between 1 and 5555 days. Your Stake accrues rewards every day, and the amount of yield depends on the length of your Stake: “Longer Pays Better”. The APY for HEX Stakes of average length is around 40%, while traditional bank CDs average less than 2%. In addition to the unprecedented yield, there is also the tendency of the HEX price to appreciate.
Depending on when one got in there may not be much of anything left already.
If you did not stake your HEX then you may be able to get 2 cents of so for it. That’s at least something.
But if you pledged your HEX, you are locked in unable to get out for the period of the pledge.
Good luck with that.
The spikes on the chart after the collapse started in September of 2021 are likely short covering maneuvers, perhaps even by the creators of HEX.
If so, perhaps there is another spike coming, but from a level unknown, perhaps as little as little as a tenth or hundredth of a penny.
Meanwhile, the value of HEX including the 40% annual interest paid is guaranteed to head to zero over time.
BlockFi Files Bankruptcy
Earlier today I noted, BlockFi Bites the Dust, Hundreds of Thousands of Customer Assets Wiped Out
What Happened?
Q: How did this happen?
A: Lure customers with a promise 10% or more interest on pledged crypto, backed by nothing, then borrow against your own coin using inflated values of your coin as collateral.
Interest is paid not in US dollars but in worthless tokens backed by nothing.
The above Q&A is a general statement, not just BlockFi.
I do not think HEX is lending money, otherwise it would likely be zero already.
However, the only way to pay 40% interest on an asset backed by nothing and collecting no fees is for the asset to go to zero over time.
Question of Backing
I repeat my previous question: What are Ethereum, Bitcoin, and US dollars backed by?
If you tell me Bitcoin is backed by energy then you do not know what the word “backed” means.
This post originated at MishTalk.Com.
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