HEX (HEX), an ERC-20 altcoin project launched by Richard Heart in 2019, has recently witnessed its price rebound from significant losses incurred this week. The reversal may have been spurred by a strong statement from Ben Armstrong, better known as ‘BitBoy Crypto’. In his latest YouTube video, Armstrong considered HEX a legitimate project, marking a positive development for crypto supporters.
Analyst says altcoin is “not a security”
Armstrong unequivocally confirmed that HEX is “definitely not a scam.” This statement comes after HEX founder Richard Heart was sued by the US Securities and Exchange Commission (SEC). The crypto creator also took note of this incident, but praised HEX’s recent bull run. Bitboy Crypto stated that HEX reached a market cap of $80 billion during the bull run. However, he also noted that the HEX crypto lost significant value along with other digital currencies from now on. Armstrong also noted that HEX staking offers “crazy returns” with an APY of around 50%.
In the video, he added that HEX is a crypto-based approach to a traditional financial instrument, the Certificate of Deposit (CD). Armstrong also noted that while the numbers may sound “too good to be true,” HEX stakers are profiting from staking overall despite the price drop. Moreover, BitBoy Crypto stated that the HEX “system never fails” and stakers always receive their tokens at the agreed-upon unlock time. However, he went on to highlight that this staking model has indeed created a “ton of controversy” lately, and Heart’s big personality has something to do with it.
SEC case and HEX price
The creator emphasized that people often think that HEX adopts a Ponzi scheme strategy. This amounts to a scam in which new investors’ funds are distributed among existing investors, thereby defrauding the latest entrants. Armstrong shed light on Heart’s humorous responses to these allegations. He added that Heart never really denied these accusations, instead labeling everything else, even the entire economy, as Ponzi. Armstrong noted that Heart has a ‘good’ point here as he draws a line between fraud and Ponzi and believes that not all Ponzi schemes are frauds.
However, he noted that SEC Chairman Gary Gensler would not view this statement in a positive light and would view it as nothing more than a ‘dirty’ remark. The HEX Founder is currently facing an SEC lawsuit for alleged fraud in crypto projects Hex, PulseChain, and PulseX. Heart is accused of raising over $1 billion through unregistered securities, according to the lawsuit dated July 30, 2023. Heart is accused of running a scam worth at least $12 million for a lavish lifestyle.
The SEC then served the subpoena on October 31, 2023, but encountered difficulties confirming Heart’s receipt in Helsinki. However, the first conference has been postponed until January 30, 2024, pending the approval of the Finnish Ministry of Justice. On the other hand, HEX price witnessed a significant recovery following Armstrong’s positive statements. The HEX crypto price rose 7.14% to $0.008552 as of press time on Saturday, January 27. The crypto had a market cap of $1.48 billion. In comparison, HEX trading volume fell 4.33% to $697,685.
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