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HEX (HEX), an ERC-20 crypto launched by Richard Heart in 2019, has recently witnessed its price rebound from significant losses incurred this week. The reversal could have been spurred due to a strong statement by Ben Armstrong, better known as ‘BitBoy Crypto’. In his latest YouTube video, Armstrong deemed HEX as a legitimate project, marking a positive development for the crypto’s supporters.
Brian Armstrong’s Take On HEX
Armstrong firmly affirmed that HEX is definitely “not a scam.” This comes after HEX Founder Richard Heart, was sued by the U.S. Securities and Exchange Commission (SEC). The crypto content creator took this incident into consideration as well, however, he lauded HEX’s last bull run.
Bitboy Crypto noted that HEX peaked at a market cap of $80 billion during the bull run. Whilst, he also mentioned that the HEX crypto lost significant value after that along with other digital currencies. Furthermore, Armstrong stated that HEX staking offers “insane yields” with nearly 50% APY.
In the video, he added that HEX is a crypto-based take on Certificate of Deposit (CD), a traditional financial instrument. Armstrong further noted that even though the numbers sound “too good to be true,” HEX stakers have generally profited from staking despite the price slump.
Moreover, BitBoy Crypto noted that the HEX “system has never failed” and stakers have always received their tokens at the unlock time they agreed on. However, he went on to underscore that this staking model has indeed created a “ton of controversy” lately and Heart’s big personality does have something to do with it.
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SEC Lawsuit & HEX Price Rebound
The content creator highlighted that people often deem HEX to be adopting a Ponzi scheme strategy. It refers to a scam wherein new investors’ funds are distributed among the existing investors, thereby, scamming the latest entrants. Armstrong shed light on Heart’s witty responses to these allegations. He added that Heart never really refuted these accusations but he rather labeled everything else a Ponzi, even the entire economy.
Armstrong noted that Heart has a ‘decent’ point here since he draws a line between scams and Ponzis since he believes not all Ponzi schemes are frauds. However, he stated that the SEC Chairman Gary Gensler wouldn’t consider the statement in a positive way and could deem it nothing but a ‘dirty’ remark.
The HEX Founder is currently facing an SEC lawsuit for alleged fraud in his crypto projects Hex, PulseChain, and PulseX. According to the lawsuit dated July 30, 2023, he is accused of raising over $1 billion through unregistered securities. Heart is charged with engaging in a fraud worth at least $12 million for a lavish lifestyle.
Thereafter, SEC served the summons on October 31, 2023, but faced challenges confirming Heart’s receipt in Helsinki. However, the initial conference was postponed to January 30, 2024, awaiting confirmation from Finland’s Ministry of Justice.
On the other hand, after Armstrong’s positive remarks, the HEX price witnessed a significant rebound. The HEX crypto price gained 7.14% to $0.008552 at press time on Saturday, January 27. Whilst, the crypto stood with a market cap of $1.48 billion. In contrast, the HEX trading volume dropped 4.33% to $697,685.
Also Read: Floki Inu Faces Regulatory Heat in Hong Kong Over Staking Programs
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