Blockchain technologies are considered to be the new feature of finance, with the projects like HEX offering alternatives to traditional banking products like deposits. HEX experienced exceptional growth during its first years but was strongly affected by the bearish trend of the crypto market that made its price decrease a lot. Read our HEX token Price Prediction to see if there is a bullish future for the coin.
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HEX Fundamental Analysis
HEX is a decentralized cryptocurrency and the first Certificate of Deposit or a fixed deposit on the blockchain. It was designed as a store of value to replace the Certificate of Deposit used in the traditional financial markets. It is also meant to facilitate the use of the DeFi ecosystem within the Ethereum network.
The project promises more efficient cryptocurrencies and payment networks based on secure and safe p2p technology.
HEX was launched in December 2019 by Richard Heart, a public figure well-known in the crypto space for his ideas. The initial HEX tokens were airdropped for free. Heart implemented a HEX network after getting rich in the early 2000s working with affiliate marketing and making online promotions. Currently, Richard is fully involved in the rapidly growing project. Recently Richard Heart bought the world’s largest cut diamond called “The Enigma”, which he renamed “HEX.com Diamond”.
HEX uses Ethereum for the transaction layer (sending and receiving the HEX tokens and interacting with HEX smart contract), and the consensus and staking mechanisms are contained in the HEX smart contract. The network is able to perform 2000 transactions per second. The official website asserts that the HEX protocol is better and safer than the one offered by Bitcoin.
Users can stake their HEX tokens and receive a share of the newly issued HEX coins. The validation mechanism rewards the behaviors that boost the price appreciation and punishes the behaviors that compromise the price. For example, stakers have to pay a penalty if they pull out the stake early and reward them for a larger staking period similar to the traditional banking deposit. Stakes can be staked for any period from 1 to 5555 days. HEX claims to pay over 40% of annual APY.
HEX utilizes the Proof-of-Stake consensus mechanism, so the users get rewarded for securing the network by staking their tokens.
HEX is an ERC-20 standard token launched on the Ethereum network. It follows the ERC-20 guidelines.
The HEX tokens were distributed to the Bitcoin holders in the proportion of 10000 HEX for 1 BTC. Bitcoin holders were only allowed to claim the HEX only during the first year of launch. The coins can also be obtained for ETH through interaction with the HEX smart contract.
At the end of the first year from the launch, the HEX tokens that were not claimed by Bitcoin holders are distributed to the HEX token holders that have stakes in HEX. Over 300 000 HEX tokens were distributed to the Bitcoin holders. The designed annual inflation after that can’t exceed 3.69%.
HEX Live Price Chart
At the end of October 2021, when the crypto market of altcoins was bullish, the HEX token was traded for $0.3, but from that point, its price started to decline drastically. On the last day of the month to swap HEX users paid $0.2 after the coin have already lost 30% of the price. It recovered slightly and stabilized at the level of around $0.22 for a few days at the beginning of November and then continued to lose value.
On November 9 the price dipped to $0.17 and then jumped up to $0.26. After that, the price returned to a downward trend that lasted for a month. By that time the price of HEX tokens dropped to $0.13 and then started to grow and gain price at a fast pace. By December 22 it was trading for $0.27, bounced around that level for a couple of days, and then reached $0.33 on December 30.
2022 started with the HEX token losing its value. On January 3 it was at $0.21, then recovered to $0.24 and kept bouncing between $0.2 and $0.24 till the middle of the month. From January 17 the price of HEX went down again reaching $0.18 on January 22. In the next week, the price kept stable at around $0.18 and then temporarily went up to $0.21. In the middle of February, the price of HEX was going down following the overall trend of the crypto market, and by March it was trading for $0.11.
In the middle of March, the crypto market experienced some bullish trends and many assets were gaining value. HEX also went up reaching $0.158 but by the middle of the month, the price returned to the level of $0.11 and stayed at that level till the end of the month. At that time HEX was growing and on May 5 it was trading for $0.2.
After that, the token was affected by the bearish period of the crypto market and in the first half of May, the price of the HEX token dropped significantly. By May 26 the price of HEX was at $0.06, and after a short recovery to $0.08 it dropped again, first to $0.057 on June 7 and then to the level of $0.03 by June 14. The token kept this low price level for the next month and in the middle of July, it started to slowly gain the price. In the next month, the value of HEX reached $0.06 and then dropped to $0.04.
After that, the price jumped to 0.05 only for a day and established a downward trajectory that lasted till the end of September. Between September 22 and October 20 the price was stable without much change at the level of $0.033, and from October 22 HEX went a little bit up to $0.039. The experts don’t expect the token to grow over 1% in the short term.