Richard Heart’s HEX Token Crashes Amid More Ponzi Allegations, SEC Investigation

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Social media influencer Richard Heart’s HEX token project is going through a tough time in trading markets. Its namesake token continues to decline in value as the project faces continued allegations that it is an aPonzi scheme. In late 2022, Heart and HEX were investigated by the SEC.

In November, the SEC sent subpoenas to various “influencers” and promoters of Heart’s network, requesting any records of information they might have about HEX, Heart itself, and related PulseChain and PulseX projects.

GUYS. IT HAPPENS. Hexicans influencers are subpoenaed by the SEC on HEX, PulseChain and PulseX. The HEX news channels are filled with information on how to shred your digital evidence pic.twitter.com/PrTYBRT9Wc

— Eric Wall (@ercwl) November 5, 2022

The market value of HEX (an Ethereum ERC-20 token) has fallen in recent months and is currently worth around $0.02. The HEX token barely rose above 1 cent between its launch in late 2019 and mid-2021, but then reached an all-time high of $0.51 in September 2021. Despite some brief upward surges, it has trended lower price drop. because.

HEX is better known for its social media network than any other utility, offering network members/token holders interest yields of between 3.69% and 369%. Rewards are greater for those who “stake” the highest percentage of their HEX holdings for the longest time, with claims that the final payout (after 15 years) would be even greater if the market value of the HEX token increased.

“The usefulness of HEX comes not from cash flow generation, but from community participation (Stakers owning HEX in the network),” blockchain personality Reggie Middleton wrote in a report for his company. Veritaseum. Is HEX a Ponzi? “Perhaps,” Middleton wrote, adding, “it is certainly arguable that Hex (the token itself) is not a Ponzi scheme, and simply a very reckless investment.”

However, Middleton has often referred to Heart/HEX as “Ponzi marketing” and “worthless”. “I have no intention of owning or buying anything related to Hex,” he added.

Despite my many warnings, many have succumbed to @RichardHeartWin Ponzi marketing. Worthless $HEX tokens offered as high as 49 cents before falling to 2 cents today amid an @SECGov probe. Because tokens have no intrinsic value to begin with, don’t expect any recovery https://t.co/j4cpftXQrq

— Reggie Middleton DeFi Patent US11196566, JP6813477 (@ReggieMiddleton) December 26, 2022

At best, HEX is an empty project deriving most of its supposed value from hype and marketing, while the network and associated projects offer little real benefit to anyone other than their promoters.

‘Force for good’ Heart is a longtime anti-Craig Wright loudmouth

Heart’s online bios (on his homepage and Twitter account) are clearly designed to appeal to the easy-going, wealth-seeking reader. They state in the opening sentences that he owns the largest cut diamond in the world, owns $10 million worth of luxury watches, and owns $3 million worth of cars, including the fastest Ferrari ever made. They also mention that he donated $27 million to charity and has an IQ of 145.

“Richard Heart is a force for good in this world,” proclaims the headline of its homepage.

“I got thousands of people to quit gambling, trading, drinking, playing overwhelming video games,” he adds at the bottom of the page. These are indeed commendable achievements, although we don’t know how creating and marketing your own digital currency token for years helps deter people from trading or gambling.

Heart has been a particularly vocal critic of Dr. Craig S. Wright and his claims to be the creator of Bitcoin, Satoshi Nakamoto. His reason for doubting Dr. Wright, he claims, is the simple fact that Wright hasn’t “proven himself” moving Satoshi Nakamoto’s Bitcoins. It’s a common trope among Wright skeptics, though several have said they still wouldn’t believe Wright even if he moved Satoshi pieces. As Dr. Wright has repeatedly stated, simply having the “private keys” to certain Bitcoins does not prove that you own them or have ever owned them.

“Why does Craig need your money, if it’s Satoshi?” Heart also asks in a video interview posted to YouTube in September 2022, ignoring the fact that Craig Wright (unlike Heart) has never asked anyone for money.

And this crook called Craig Wright a crook. What a prankster.

— The Enchanted Prince (@Bayalumaya1) December 26, 2022

In an infamous incident three years ago, Heart heckled Dr. Wright from the audience after Wright presented at a blockchain event.

“You’re only a public figure because you dress up as Satoshi,” he said into the microphone, repeating the erroneous claim that Dr Wright is somehow “on the run from the Australian tax office (although he lives in the UK). His anti-Craig tirade only ended when event organizers turned up the volume of the room music to stop him.

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Heart built up a large following on social media as a Bitcoin maximalist and market commentator before launching the HEX project. Prior to his involvement in the blockchain world, he was an online marketer named Richard James Schueler, also known as the “Spam King” and provider of life extension products.

Once again, it seems that those attacking Dr. Wright the hardest with ridiculous allegations are those who are themselves determined to make as much money as possible from gullible crypto investors. HEX has never demonstrated real-world usefulness and has primarily focused on acquiring new investors and subscribers. Contrast that with BSV, the original Bitcoin protocol, which has several large-scale (very real) use cases without “stake” promises or investor networks, then ask yourself who the real fraudsters and criminals are.

Watch: Law & Order: Regulatory Compliance for Blockchain and Digital Assets

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