Altcoins: What Is HEX? - A Deeper Look Into The HEX Blockchain
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Summary:
- What is the HEX Platform and how does it work?
- Advantages of the HEX exchange.
- HEX's past, present and future price positions.
The HEX Platform
HEX was launched in December 2019, and is the first blockchain Certificate of Deposit, that offers high returns, no minimum and decentralised design. The average return staked on HEX is around 38%. The current circulating supply of HEX is more than 173.4 billion coins, with no maximum supply. The market capitalization is more than $12.8 billion, which puts HEX in the top 10 cryptocurrencies in terms of market capitalisation.
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HEX is an ERC20 token that is launched on the Ethereum network. The HEX token is designed to act as a store of value to replace the Certificate of Deposit as the blockchain counterpart of the Certificate of Deposits used in traditional financial markets. HEX token is also designed to leverage off the emerging decentralised finance (DeFi) ecosystem in finance using the Ethereum network.
Outperforming Ethereum?
According to HEX.com the HEX cryptocurrency was designed to outperform Ethereum, and has achieved good results since its inception. Behind the scenes, the HEX cryptocurrency is an advanced game theory that has been updated to eliminate all of Bitcoins flaws.
HEX utilises the Ethereum network for the transaction layer (the layer that makes it possible to send and receive HEX tokens as well as allowing interactions with the HEX smart contract), whilst the consensus code and staking mechanism is contained in the HEX smart contract.
Certificates of Deposits are common investment tools that are normally managed by banks. The Certificate of Deposit market is a trillion dollar market and is used worldwide. HEX took the concept of Certificates of Deposits, removed banking fees, added a higher average return rate and turned it into a decentralised cryptocurrency.
HEX’s coin - HEX USD
HEX allows their users to stake their HEX coins for a share of a new coin issuance, or inflation and contains features that are designed to incentivise behaviours that will encourage price appreciation and discourage behaviours that could harm the price. The HEX smart contracts rewards stakers for staking larger amounts of HEX for longer periods and penalises stakers for ending their stake early. When lockup periods are over, HEX coins are created to pay off the existing holders.
At the end of the first year of launch, all HEX coins that were not claimed by Bitcoin holders are distributed to the rest of the HEX users who have active stakes. After the first year of launch, the maximum possible annual inflation is designed to be 3.69%.
For Bitcoin holders, HEX coin is a free airdrop, when switching from Bitcoin to HEX, users are not required to pay anything in the process. Interest on HEX coins are paid in HEX, the monetary value of the paid interest is determined by the market value of HEX at the time of maturity.
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Advantages of the HEX blockchain
- Faster and cheaper to transact, the Ethereum platform that HEX operates on
- Makes use of Ethereum's security which makes the HEX platform safe.
- The biggest benefits are offered for users that stake for a longer period of time.
- There are no intermediaries required for users that convert Ethereum to HEX.
- Early claimers are rewarded with bonuses.
- Bonuses are given to both the referrers and to those who are referred.
- Users who lock their HEX on time receive interest and unclaimed coins.
- Larger and longer term investments are rewarded with additional shares, the price per share continues to rise.
- HEX equalises incentives, therefore, the more participants on the network, the better.
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How to buy HEX
- Users will need to download the coinbase wallet if they want to buy HEX.
- Buy and transfer Ethereum (ETH) tokens and transfer them to your coinbase wallet.
- Using the trade tab, use your ETH to buy HEX.
Past, present and future prices
HEX price only started picking up in the first quarter of 2021, before then the price remained low. In October of 2021 the price of HEX rallied, and then fell again. HEX had a disappointing start to 2022 and lost 35% of its value.
The current investor risk off sentiment has affected HEX the same way it has to some of the other cryptocurrencies. There is a link between the cryptocurrency market and the broader markets, the broader market sentiment's sell-off attitude is reflected in the graph below over the past few months.
Some analysts believe that the price of HEX will continue to increase for the next 10 years, with the possibility of the price reaching $4 per coin by the time 2031 comes around. This forecast is based solely on numerical data, due to the volatility of the cryptocurrency market, it is difficult to make an accurate forecast for the price of HEX.
HEX Price Chart
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Sources: finance.yahoo.com, coinbase.com, techstory.in, coinmarketcap.com, hex.com, technewsleader.com
