You know what they say, “what goes up must come down.”
This is especially true in the cryptocurrency space when coins rise too far, too fast.
Could this be happening to HEX right now? Could it be time for a fall?
The price did just surge almost 8x from where it was a few weeks ago. And, the HEX big “payday” is coming on November 19th. The price chart shows an incredible climb recently.
If you’re a HEX holder then you might be worried. And even if you’re not…you might want to pay attention since this coin’s rise and fall will surely affect other coins.
HEX Basics in Brief
HEX is an ERC-20 token designed around increasing staking and paying interest to stakers.
A Forbes India article writes “Hex is more secure against inflation bugs and pays interest directly to the buyer. Bitcoin, however, requires risky lending to accrue interest.”
There isn’t much mention of what HEX does beside provide staking interest, and that could be because HEX is designed to simply be a CD — a Certificate of Deposit or Time Deposit.
Bitcoin is designed to be money and HEX seems to be designed to be a smart contract that makes interest on that money.
HEX says that the longer you stake HEX and the larger amount you stake — the more HEX you’ll earn in interest. The smart contract is programmed to make that happen.
HEX Causes Hype, Hope, and Heat
Richard Heart, the CEO of HEX, said:
“In crypto, there’s a tribalism that every coin you buy is a world-changing amazing thing. Every coin anyone else buys is a scam by default.”
That seems very true for the tribes in and around HEX. The community is very active and very invested in the project and its success.
That fact has caused the price to fluctuate widely as crypto giants weigh in on the new token.
Even the legendary Andreas Antonopoulos was pulled in when HEX allegedly offered him 10 BTC to speak favorably about their project.
These types of controversies have moved the price quite a bit — but not as much as the price has moved up recently.
Why did the price go up?
HEX’s Big Pay Day
November 19th is fast approaching — and that’s the day that HEX will end it’s nearly year long “launch phase.”
This culmination is called the Big Pay Day and it’s the day when HEX will pay out millions of its tokens to people who are actively staking HEX.
This Big Pay Day is most likely the primary reason why HEX has rocketed in value. People are buying and staking the coin in order to be paid out from the reserve pool of HEX which will be distributed on November 19th.
But will the price keep rising?
HEX’s price after ”Big Pay Day”
The price of any coin is difficult to predict. HEX’s price is also tough to nail — but there’s an interesting dynamic at play with HEX which is different than other crytocurrencies — and that is that the amount of HEX in the market cap is locked in thousands of smart contracts.
The locked HEX cannot be unlocked and sold until the smart contract unlocks it at the end of the staking period.
So after November 19th, the supply of HEX may not be as large as some think.
Plus there’s the issue of demand.
Some people might want to keep buying and keep staking HEX after November 19th.
These two forces of supply and demand will battle themselves for quite a while after the Big Pay Day — especially with a new Bitcoin Bull Market forecasted to be coming up in the next few years (which tends to raise the price of alt coins too).
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