Suspicious Coin Listed On Bitcoin.com
Bitcoin.com recently listed a controversial altcoin, which is believed to be a scam. As you may expect, this move has met with sharp criticism from the side of the crypto community.
We all have reasons to be afraid of scams in the cryptocurrency world. Not so long ago, we were talking about recent updates in the case of infamous OneCoin, and during the last week, two other crypto schemes have successfully been shut down. However, the alleged new threat is on the horizon.
A new level of a crypto scheme?
To begin with, let’s take a look at the chief troublemaker of this affair. The cryptocurrency project named Hex emerged in the crypto sphere at the beginning of December. It was launched by Richard Heart, who described it as the first high-interest blockchain certificate of deposit, which will allow contributors to gain profit from staking assets. Earnings are latter on paid out in HEX coins – a corresponding cryptocurrency related to the whole project.
In the interview with Cointelegraph, Heart tries to describe all features which make his work better than Bitcoin. His prime argument was pointing on the way of how assets are invested on the HEX platform – with the use of smart contracts, instead of relying on third-party exchange. Sticking with this point, Heart appeared to be a faithful supporter of the original idea of Bitcoin as currency – decentralization.
However, this aspect of HEX is also the most controversial one. What Richard Heart is seldom talking about is the core feature of the whole project: so-called origin address. Needed to be accepted by every contributor, it forces them to transfer a significant part of the acquired profit on it. Although the owner of the private key to this address isn’t officially known, all clues point to Heart. As crypto researcher Goldman Sats told in his blog post about the HEX, it is the first token where enrichment of the founder is directly integrated into the core idea of the project.
Such an obvious violation of the decentralization idea met with criticism. Harsh comments about the altcoin appeared on Twitter and crypto-related subreddits. However, the real backlash on the project starts with the surprising news coming from Bitcoin.com. For those of you who are not familiar with this website: this is the official site of the leading Bitcoin’s offshoot, Bitcoin Cash, remaining mostly under the control of coin’s first supporter, Roger Ver. Bitcoin.com is already controversial among the community with pushing the leading role of Bitcoin Cash as an actual Bitcoin – but let’s not deal in this matter here.
Although Bitcoin.com is primarily focused on news and promoting the usage of Bitcoin Cash, it also has some other related subjects, like the cryptocurrency exchange. And even die-hard fans of Roger Ver probably doubted their faith in the website with the announcement of listing HEX there.
But the launch of the HEX market on Bitcoin.com exchange wasn’t a successful one. Both of two opened trading pairs, HEX/BCH and HEX/ETH, noted significant price drops in the initial days – 64% and 57% respectively. Nevertheless, the support of such a recognizable player was undoubtedly helpful for Richard Heart’s project. Or at least it meant to be so, by legitimizing HEX in this way.
Community make it clear
The backlash of the crypto world on listing a suspicious altcoin was easy to predict. The community reacted with the mix of criticism and disbelief, clearly showed in response to the Twitter announcement linked above. HEX quickly began to be compared to the infamous BitConnect scam. Funny enough, one of the former supporters of this pyramid scheme affiliate, Trevon James, is now advertising Richard Heart’s project!
The decision for listing controversial cryptocurrency was also widely commented on major subreddits. Even the r/btc, which is the gathering place of Bitcoin Cash supporters and Roger Ver fans, was full of opinions criticizing the recent events. Cooperation with HEX turned out to be a strong blow to the BCH community.
However, there are some voices of support for this decision. Some people believe that every trader should be free to choose whatever cryptocurrency they want – even if it may cause them to lose their savings. One of the Reddit members, MobTwo, pointed out that this libertarian approach is suitable for Roger Ver. However, he is also noting that Ver should be more aware of the consequences of his decisions since he is an influential crypto entrepreneur.
Speaking of Roger Ver, Bitcoin Cash unspoken leader responded to the voice of criticism on the Reddit. When one of the users pointed, that listing HEX on the recognizable exchange will help Richard Heart to get people who rely on the opinion of authority figures or institution, Ver agreed with him in the comment section.
Even if Roger Ver decides to delist HEX from the Bitcoin.com exchange, the suspicious cryptocurrency has already gained momentum. Richard Heart is likely to gather more and more contributors to his project – and every one of them will share earnings directly to Heart’s “origin address.” From this point, he could easily take gained funds for himself, collapsing the entire HEX market in one brief moment.
Or, the whole project may also achieve success, with Heart keeping his promises for the supporters. But since he tries to cover the existence of origin address, this scenario is, unfortunately, very unlikely to be true.
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