Last Updated October 5th, 2019
BitcoinHex is now simply referred to as “HEX.”
The website will now be located at hex.win.
Richard Heart seems to be dropping the Bitcoin brand and colors altogether in an effort to separate the brand altogether. This may be a smart move in the long run.
The intention still seems to be allow Bitcoin users to claim tokens for free, but since this is a developing story, we’ll update as we go.
This project is evolving from day to day. Information is subject to change rapidly, and at the time of this writing, what follows is the best information we have.
This article is NOT investment advice. Whether something is a good investment is up to you. Do your own research.
Understanding Hex requires watching a lot of Richard Heart YouTube content, as it can be somewhat hard to understand unless you are well versed in crypto!
We are not here to call any project a scam unless it warrants it. We are fair and objective based on the available information at the time.
Hex Airdrop Launch
HEX is expected to launch the airdrop to Bitcoin holders in November, 2019.
The founder is Richard Heart who has a questionable reputation and controversial name in the cryptocurrency space, leaving investors asking if HEX is a scam.
The short answer is no, it does not appear to be a scam.
Will it succeed? As with all things in crypto, only time will tell. Possibly a long time….
May 2019 Updates
First, let’s understand a bit more about the founder – Richard Heart.
July 2019 Update
Richard Heart has indicated on Telegram that the snapshot date for Hex is still up to 45 days away as the project enters the audit phase.
October 2019 Update
HEX estimated launch date: November, 2019
Security audits complete: September 12th
Audits found things to fix? 0-21 days
Snapshot warning: 14 days
Snapshot processing: 2 days
Who is Richard Heart?
Richard is the face of HEX and also the reason for public skepticism towards it. At the time of this writing, team members also included Kieran Mesquita, Cody Lamson, Brent Morrissey, and Dan Emmons.
He hosts a popular cryptocurrency focused YouTube channel where he interviews guests and provides deep insights into the inner workings of the industry.
So, what’s the skepticism about?
To start, Richard Heart is a pen-name. Thanks to some thorough research, it is believed that his real name is Richard James Schueler.
When asked about this in his YouTube videos, he’s open about the fact that Richard Heart is a pen-name and until he launches a project that requires people to invest, he will not give up his true identity.
Why does he care if people know his real name?
Another great question. A viral post went public and made waves in the cryptocurrency space, showing an unexpected side to Richard’s raw behavior.
The post reveals an alleged shady history doing business in Panama and connections to gangsters.
Richard gained his riches from several different businesses – he is known as an email, affiliate, and multi-level marketer.
He noted gaining his wealth in the early 2000s by selling virtually anything such as sex toys, sex performance drugs, and anything else that he can advertise through email marketing.
In layman’s terms, he was an early adopter of annoying email “spam,” and profited big time from it.
Nonetheless, he is great at what he does. He boasts ramping up his marketing company to 160+ employees and was able to retire early.
After retiring, he played video games for several years and came across Bitcoin while reading on Reddit.
He became an early adopter, well connected, and ultimately, a thought-leader in the space.
After a viral interview with Roger Ver, his subscriber count and Twitter following soared quickly – and he knows how to capitalize from this.
Still, it goes without saying that Richard is a smart man, knows how to build a team, and most importantly, knows how to sell.
It’s important to understand the reasons behind his controversial image because, at the end of the day, HEX is nothing special from a technical point of view. Anyways, this is about HEX, not Richard Heart, so let’s dive into the project.
What is HEX coin?
HEX (BHX) is not a project promising increased scalability, side-chain compatibility, or innovations on consensus.
Instead, it is an ERC-20 token intended to make early adopters rich. It is essentially a multi-level-marketing crypto scheme.
Users receive referral bonuses and early claimers get a bigger piece of the pie.
According to the FAQ on the website, HEX was launched for what we consider to be an awfully rationalized reason. When asked “Why are you launching this?” – the FAQ response reads:
“Bitcoin has only 3 main functions: Send, Receive, or Mine. If you want to earn interest on your holdings, you must entrust them to a centralized third party.
These are security holes that are often hacked, destroy privacy, or introduce fees if you want to get your funds out.
The parties are so important to users that the companies themselves have made more profit on Bitcoin than its founder.
HEX adds a staking function which pays stakers instead of miners.”
In summary, the appeal to HEX is that it offers staking.
Since HEX is an ERC-20 token meant for holding, it has none of the immutable, trustless, and secure functionalities that we all adore about Bitcoin.
It is an Ethereum based token. There is really nothing ‘Bitcoin’ about HEX.
Next, let’s explore the economics behind HEX, since that is what it’s all about.
With HEX, the early bird gets the worm. The early claimers receive more BHX and bonuses. Richard Heart has designed this coin to have the best “pumpamentals” of any crypto.
Meaning, it’s designed to pump, encourages holders, and punishes people who end their stake early.
The claiming period for HEX lasts 50 weeks from the smart contract’s start date.
Every 7 days, there is a 2% reduction in what users will receive from the amount of Bitcoin they are claiming with.
In other words, by week 49, new claimers will receive virtually zero HEX and will need to purchase BHX over-the-counter (OTC), or from an exchange if it is listed.
Early claimers can expect to receive 10,000 BHX for 1 BTC and yes, users can have a fraction of a Bitcoin.
If a user claims in the first week you will get a “speed bonus” of 20%.
List of Hex Claim Bonuses for Launch and Stakers
|Claim Bonuses||Claim Phase (First 50 Weeks)|
|Referral||Earn 20% on anyone that claims using your link.|
|Speed||Earn 20% bonus if you claim first week. Every week you wait, bonus Reduces by .4%|
|SillyWhalePenalty||1k-10k+ claims pay reduced by 50-75% (Their loss is stakers gain! Paid over 50 weeks)|
|GoxMeNot||Mt.Gox and a few other parties are not allowed to claim.|
|Staking Bonuses||First 50 Weeks. Stakers Only|
|We’re all Satoshi||2% Unclaimed coins paid to stakers weekly. Claim 1st week or lose it all over 50 weeks|
|Critical mass||Increases stakers pay by % of coins that claim. If 100% then 100% bonus.|
|Virality||Increases stakers pay by % of addresses that claim. If 100% then 100% bonus.|
|Stake Bonuses||Continuous. Stakers only.|
|Staking||If 1% of coins stake, they make 369% interest avg. e.g. If 2% then 184.5%, 10% is 36.9% The less stakers the less the pool gets divided. More stakers, less circulating supply.|
|LoyalStaker||1/2 Emergency End Stake penalties paid to pool. (1/2 weeks committed, minimum 12)|
|1/2 Late End Stake penalties paid to pool. (1% of stake per week after 2 week grace)|
|LongerPaysBetter||The longer you stake, the more you make. ~20% bonus shares every year you commit over 1 week. Works on any length over. So 5 year gets 2x shares that 1 week would.|
|Compounding||The interest pool is compounded every week, maximizing your gains.|
The fewer coins that are staked on the network, the less everyone can win. It encourages HODLing.
When a staking period ends, you must formally end your stake to take your “shares” (coins).
If you do not formally end the stake, and take the expired shares out of the pool, then “after 2 weeks a 1% per week penalty start accruing.” You must re-stake your coins (shares) to receive interest again.
As mentioned, the explanations on the website are a bit vague, but this is what can be gathered. Stake early, win big. Stake late, then you may as well stay out of the game.
How Can I Claim HEX?
To claim HEX you must have Bitcoin in a wallet with access to the private keys and you must use the claim tool when it is live.
Do not keep your Bitcoin on an exchange to claim Hex.
You will need to claim Hex with Metamask and an ethereum wallet. As of now, all Bitcoin addresses should be eligible including those that start with 1 or 3.
In other words, you have to publicly show a snapshot of your Bitcoin holdings (UTXO), which some view as a personal security threat.
For non-technical folks, to claim coins you will need to use a ‘claiming tool’ which HEX will provide.
This tool cannot be downloaded and must be used online.
They boast offering a robust claiming tool which can claim from multiple addresses at once. We shall see how good it really is.
Which Wallets Can I Use?
Claiming HEX has apparently been tested with Electrum, Coinomi, Bitcoin Core, Mycelium, Bither, Bitcoin Knots, Armory, Trezor, Ledger Nano S, KeepKey, and Trezor through Electrum (for bc1). Electrum, Coinomi, Ledger, and Trezor are recommended by Richard.
As of now, they do not have their own wallet released.
Should I Claim HEX?
If you have Bitcoin in a wallet ready to go, then yes. You have nothing to lose!
The coins could become absolutely worthless, but if you already hold BTC, then you might as well claim unless there is some sort of privacy concern you may have.
We do not recommend selling altcoins, cutting losses, or rebalancing your portfolio in any way, unless you genuinely believe in Richard’s project.
Simply keep an eye out for the exact date to start claiming, and have fun with it.
All in all, HEX is not a scam because users do not need to invest in anything and there are no promised returns.
It is simply an ERC-20 token which is already becoming out of date with the introduction of ERC-223, an improved version of ERC-20.
As the launch of the project comes closer we hope to see some more explanations and examples of how bonuses function, but for now, it seems like a fun project to take part in.
It’s “free” money, and a great opportunity to get in early without much risk.
Will Everyone Dump Hex?
Ultimately it is unknown what will happen until the currency gains some value over time. However, this particular coin is setup specifically to reward hodlers (holders).
In fact, because it operates like a bank CD, you will gain more if you stake your coins and do not dump. There are penalties built in for people that dump or sell before their staking period is up.
Check back to this post for updates on how to claim, coin airdrop or release dates, and other ongoing updates. We will eventually know if this is potentially a “hexit” scam.
As of this writing, Richard has never emailed the Hex email list.
The best way to learn? Take the time to watch videos like this, that go VERY in-depth on the game theory, technology, and thinking behind the project.
Watch out for that “silly whale” penalty!
How to Claim Hex Tokens
- When the snapshot is announced, gather up all of your Bitcoin addresses and prepare for the claim.
- The claim tool will be live on hex.win. Using Metamask, connect your Ethereum address to the tool.
- The claim tool will provide you with a sign statement request. Log into your Bitcoin wallet and paste this message into the verification area. This can be done on many hardware wallets such as Trezor, or desktop wallets such as Electrum.
- That’s it. Your Hex coins will be airdropped to your Ethereum address as an ERC-20 token.