“Not only will Richard control close to half of all HEX after the first year, but it is the first token I have seen to have its founder’s perpetual self-enrichment baked into the protocol.”
You want to think this is a precedent, but that’s actually every ICO 🤷♂️ https://t.co/0Ly0R5eVPn
Why is anyone worried about greedy people getting scammed?
Not to sound like Dick himself, but if it is a scam and everyone is falling for it, he's doing the world a favor in bringing it market efficiency. This isn't someone trying to ripoff a pension fund of innocent people. Let's not get all righteous about it.
Bitconnect? I love that everyone lost their money. It actually makes me happy. There are plenty of morally wrong scams in this world that is worth putting people under for, but people being scooped by crypto ponzis are not even worth a single compassionate thought.
Richard is careful to avoid saying that you are purchasing HEX for Ethereum.
Devil's advocate here: If you're selling something / taking an entrepreneurial position on anything in life, you avoid using words like "buy" "sell" and "sign". You'll find this to be true in any major company's sales department.
I've only been in crypto for two years now, so I'd like to ask the question: "What has Richard Done to make people angry? Has he previously run a scam or something like that?"
Something that kind of supports the O.P.: Aside from trying to place emphasis / stress on scarcity for the HEX token, I haven't seen any other kind of utility for it. I haven't seen him try to make the case for its existence besides, "Maybe it can be money." or something similar.
>"What has Richard Done to make people angry? Has he previously run a scam or something like that?"
Richard is well known in the scam world. He used to hang on bulkers (spam) forums and was originally doxed there for ripping off many members. His specialty was Viagra as he [brags about here](https://web.archive.org/web/20070821235025/http://mail.nl.linux.org/linux-crypto/2003-05/msg00129.html
). He often talks about once running a multi-million dollar "marketing company" w/ 150 employees but he fails to mention that the marketing company was really just a call center specializing in spam and bullshit schemes. He hid out n Panama for years doing this until he was run out of the country. Much of it is actually quite hilarious and was documented on a local news site which is offline now but luckily some of it is still archived. If you want to learn more you could [start here](https://archive.is/search/?q=richard+schueler).
Because he spends no money on marketing but incentivises others to promote his product through mlm like rewards program (with only one layer). There also seems to be some misconception in the article since AFAIK he gets bonuses only from claims and not AA (might be wrong though) where AA highly dilutes free claims for far lower exchange rate (because you actually have to 'buy' them)
The largest flaw of HEX is Richard's greed. He was always meant to own the origin address, that will get ~40% of the total supply, but the AA wasn't part of HEX until a couple months ago.
This makes HEX just like every other ICO. They all created an ERC20 out of thin air, sold half and kept the other half to sell later on the open market. Richard is selling 40% through the AA, keeps 40% for himself and 20% goes to free claims.
It gets a copy of the big payday. So lets say only 1 million BTC claim, then the other 17 million BTC in HEX equivalent get distributed to all stakers and the origin address gets a copy of that huge amount.
In top of that the origin itself is also staking, so it will get double dip share of the big payday.
Forget claims - they are tiny.
500M HEX are given out each day in AA + 20% referral bonus + 10% refered bonus + 30% to origin address. That alone is over 18% of supply.
Origin also gets 50% of penalties (early end stake, late unstake) so the Origin benefit lives forever...not just claim phase. I addressed this in my own medium article [https://medium.com/@robertmuncaster/hex-am-i-scam-i-am-303ef6892391](https://medium.com/@robertmuncaster/hex-am-i-scam-i-am-303ef6892391)
Also note he shills pumpamentals dot com....where he gets to be the referrer too.
look at tokens...dude is cleaning up with his shill link...119M Tokens
At the end of the day Richard heart spent his own money , time, sanity, health and reputation building a tool. Then he made it free to the biggest group of crypto holders (bitcoin) to try out for free. And if people outside of bitcoin want to try it out they can trade eth to do so.
Those are actual facts.
I also recognize the facts in the article about the founding origin and related fees and bonuses it will collect. But I disagree with the takeaway that this is some new form of scam, and that Richards a bad dude.
I don’t think there’s an issue if people want to try a new financial tool out, either by paying or being rewarded by having the best (imo) asset. And I don’t see any issue with Richard collecting eth and hex payments for creating the project and setting it up. Developers, programmers, auditors aren’t cheap, and Richard invested his time, reputation, capital and health in the making of HEX. Everyone makes the choice to participate in the system. All the parameters of the game are public and available for inspecting. So people can understand what they are getting into.
I’m interested in seeing what comes of this, as the idea proposed by HEX (certificate of deposits on the blockchain running on smart contracts with no middle man) is a very good business proposition and the idea makes sense to me. I won’t pay more then $ 20 in eth ( I’d give that to him as a tip anyways because he’s had a couple good price calls that saved/or made me money) but I’ll defiantly free claim and try the system out, as that literally only costs me a few minutes of time.
>But I disagree with the takeaway that this is some new form of scam, and that Richards a bad dude
You're wrong, Richard is a bad dude and YES this is a scam. I suggest you DYOR on this guy and you'll find plenty of skeletons, literally. Start here: archive.is/search/?q=richard+schueler
All tokens have someone/small group with a large amount of tokens. Just because Richard is a youtube personality doesn't deem it being an argument that can only be applied to HEX. If anyone could list his/her arguments I'd be happy to answer them based on the research I've done. I think it's ignorant to call something a scam if you haven't looked into it just because everyone else is calling it a scam. Bitcoin was also considered a scam in 2010 by a lot of people; listening to the herd only brings missed opportunities.
To be fair, the people calling scam from a place of ignorance is slightly silly.
However, the whole project does rest on whether the ETH at the origin address is used to further the project, at worst, or remain exactly where it is, at best.
It is highly uncertain at this stage what the outcome will be.
It's either RH ruins his reputation, leaves the industry, his followers, and his pseudo-fame for whatever ETH is in that bucket.
Or he proves 90% of the industry wrong, puts a finger up to all the doubters, and proves himself to be one of the most genuine people in the space.
I would prefer the second option, but only time will tell.
You could just buy into projects that have built something useful, have a clear direction, and a team that has earned some trust already.
How does this shit even appeal to you at all? You seemed to be against dumb projects when you sat on that panel with Richard. Now he's created one, you're all "hey he might not run away with the money so let's wait and see!"
It's not even a good idea. He might as well have created a set number of tokens and sold them for a dollar each, and said "There you go. Hex. Better than bitcoin. No inflation." and idiots would have still bought it - Everything else is just window dressing. He isn't building a protocol, or anything else useful. He's just printing tokens that do nothing.
> You could just buy into projects that have built something useful, have a clear direction, and a team that has earned some trust already.
That limits your options quite a lot!
> How does this shit even appeal to you at all? You seemed to be against dumb projects when you sat on that panel with Richard. Now he's created one, you're all "hey he might not run away with the money so let's wait and see!"
This is a lot of truth to what you say. However, I am still on the fence about HEX, mainly as I see the potential in a game theory based token inflation model. I am not convinced HEX is the solution, as I see flaws in the design.
However, I do think the abuse that RH has received thus far has been out of proportion, especially considering he speaks a lot of truth about the industry in general.
> He isn't building a protocol, or anything else useful. He's just printing tokens that do nothing.
This is not entirely true. There is a certain amount of design and thought put into the inflation architecture/system.
>I see the potential in a game theory based token inflation model
The key word being "game". If he marketed this as a game (which it is), that would be fair enough. But the pitch isn't honest. It's a whole bunch of obfuscation about certificates of deposit and other bullshit.
> he speaks a lot of truth about the industry in general
He does. He also did a 180 on pretty much everything he's ever said too. He interviewed one guy a few weeks ago, and the guy was talking about DeFi. Richard was telling him how much it all sucked, then a few days later he was repeating the guy's points back to someone else as if they were his own points that he stood by. The guy is full of shit.
Ever notice how he constantly repeats the same few talking points word for word? It's not because he's insightful. It's because he rehearses a few things to sound informed, and recycles them.
>There is a certain amount of design and thought put into the inflation architecture/system.
Ok, there is. But you already know it's just a game. The outcome is about who is holding the most HEX at the end. Or the second-most, since he's already given himself the house advantage. And he's already tried to market it as more than it is, dishonestly.
There are other games which have more complexity to them, and don't earn their creators millions of dollars in a matter of days. People are being blinded by the fact there's a smart contract involved, and some distribution rules that sound "a bit complicated". In reality, it's all fairly simple when you consider that Chess, Go, Monopoly, Poker etc. can all be written as programs too. It's just not as impressive as he's making out.
The one saving grace would be how he uses the ETH to bring more value to HEX. But it's still all pretty surface-level shady (especially if he just uses it to manipulate the market directly.) There's just way too much shadiness going on with this thing.
If the Origin address doesn't stake HEX then it loses out on some significant rewards and becomes less significant. Moreover, the ETH remains irrelevant, it's a false security that we humans crave for since we're stupid monkeys.
If the ETH is used for marketing and expanding the ecosystem, then great - HEX itself is not dependant on origin and could work without it now that it has gone decentralized. I have learnt that the most controversial ideas are the most successful ones. HEX promises what it can deliver which sets it apart from scams, although it's marketed as one. Most crypto projects out there are dependant on developers updating code, and if those developers stopped working on their project then the project would die fast. This is one thing that sets HEX apart.
Also, the code is open sourced and has been verified by third party authors. Please see:
This is more than what most blockchains are capable of doing, yet it's extremely controversial for its new way of doing things. I can't think of anything more bullish. I hope I don't sound like a moon-boy, I have a geniune interest towards innovative ideas and HEX excites me.
Everyone's talking about staking HEX but isn't the purpose of staking not part of the POS consensus algorithm? That makes no sense because "staking" your HEX just fakes scarcity and you get rewarded instead of contributing/participating in a consensus algorithm.
Oh my gosh...2019 and people are still falling for this.
Yeah, that's what I meant. They use the term staking to mislead potential investors. Staking in a POS consensus algortihm plays an important role whereas locking up (they use "staking") your HEX does nothing but faking scarcity.
It's not faking scarcity when the tokens are not available to the market. That is an actual reduction in circulating supply. The tokens are burned when staked by the smart contract, and are not re-minted until the stake expires or is cancelled (and then penalties paid).
How is the scarcity fake, when one of the main utilities of the token is the interest earned from staking?
There is nothing fake about it, as it's a core component of the token design!
In your opinion every POS token is therefore faking scarcity. Correct?
> POS Staking does something for the Consensus
Don't dress it up as if it's fancy. There isn't much to it. All it does, most of the time, is provide a minimum capital outlay in order to have the opportunity to suggest a block to the network for validation.
i interviewed that guy for my bachelor thesis. cant believe he would sacrifice his credibility for some quick buck. afterall he was big on telling how much money he has and/or had. one should thing he does not need to do such cheap scam's and this in 2019, lul.
You have to admit this is a really interesting 'project/scam' (your choice...) to follow.
Richard isn't hiding in the shadows and willing to debate anyone who's up for it.
I love the entertainment. The 'discussion' with Peter McCormack was great.
To be fair Rich does not really engage in discussions. He will talk over the opponent or engage in minutia when presented with an argument he knows he cannot win. Its a clever strategy, but to say he is "winning" any of his debates is just not a good conclusion. However, as you say it is quite entertaining if nothing else.
There is a small chance Richard will use the ETH to bring value to the token - which could render certain conclusions invalid. I've even seen theories about him sending it back in the future!
That said, it will have always been moronic to send it to him in the first place. And theories of good intentions ("breadcrumbs", "connecting the dots" etc.) typically result in disappointment.
What strikes me as particularly odd is his (apparent) lack of understanding regarding the legal side to this. You don't escape the SEC by stating things like "If I told you X, there'd be an expectation of profit, and that would make it a security" - that is not how it works, and I'm surprised he would think otherwise - especially as he's literally promising gains out of the other side of his mouth.
There's probably a fair few people thinking "I'll just send 1 ETH as a gamble", hoping to cash in on the stupidity of others - because they don't realise they're just one of the stupid ones getting played. Even if Richard's end goal is to "save" these idiots somehow, they were still dumb enough to need saving.
That's enough of a rant for now.
tl;dr - Regardless of his intentions, you're an idiot if you send ETH to Richard, or even post referral links (free marketing for him)
I dare say we're all idiots to some degree, for even discussing it.
or they can claim HEX for free by holding Bitcoin at a rate of 10,000 HEX per BTC.
So while the ETH thing is stupid, and anyone sending their ETH anywhere to get a promise of more is an idiot... I can claim some of this for free because I own BTC like a fork? Then presumably dump it? There's a catch somewhere here right?
Eh that buy order would already be there, and without me dumping they would have to pay even more for the scam token!
All jokes aside, apparently I have to hold or stake it for a year before it’ll allow me to sell (some sort of timelock?) - if that involves anything active on my part I’m out.
You can instantly dump 10% of the free claim, but the rest is locked for a year.
As 90% of free claims will be locked, and people are (stupidly) buying billions of tokens for ETH, then the amount of liquid *free* HEX will be relatively tiny, and likely worth next to nothing anyway.
Its trading (kinda) on Bidesk.com - A "hex" is trading for 0.00000178 ETH. Ill leave the convertion math to you.
If you claim 1 BTC, youll have 10.000 HEX but only able to move 10% = 1.000 HEX. So you can get 0,00178 ETH if you claim and dump right now.
taipalagSilver | QC: BCH 783, BTC 75, CC 59 | EOS 387 | Tr1 month ago
While you’re calling out a potential scammer, you’re also advocating for violence by the state.
You should really read “The Most Dangerous Superstition” by Larken Rose to understand what you are doing.
Edit: to the ones downvoting me, I want to remind you that cryptocurrencies weren't created to have our finances controlled by the state. Yet here you are complaining to government as soon as you see something you don't like.
People need to take responsibility for their finances, and not have the government do it for them.
Not a fan of the guys who are doing this they have literally brought the industry to its knees by perpetuating bullshit to the newbies but you’re correct.
Those who wants the US government to get involved, keep your laws to your own country, if you want to limit your own people and apply authority over people buying cryptocurrency in your domain Go for it. But for those of us not in the USA regardless of wether I agree with the ICO, unless the project is strictly bound to the US they have no right to shut it down.
For those of you in the back:
USA ARE NOT THE WORLD POLICE.
Sort your own corruption out before you start to tell the world what’s right and wrong.
Cryptocurrencies weren't created to enable scammers either
taipalagSilver | QC: BCH 783, BTC 75, CC 59 | EOS 387 | Tr1 month ago
I haven’t researched HEX so I can’t comment on if it is a scam or not.
OTOH, I have been reading on the myth of state authority and once you understand this concept, you understand that appealing to the authority of the state is to appeal to unmoral initiation of force.
Really, the book I referenced above should be read by anyone interested in crypto.
ninja_batmanPlatinum | QC: BTC 73, ETH 49, CC 37 | TraderSubs 1 month ago
This really belongs at the top. Opportunists like Richard have been making the space look like a scam ridden grifters haven for far too long. The fact he did zero KYC/AML while insinuating 10,000x gains should get their attention. The SEC was setup for exactly this type of fraud.
Yes, but Heart was talking about free Hex for BTC hodlers for more than a year. It wasn't until the right before launch that it became clear the the Adoption Amplifier ETH fundraising drive was the main event.
It is a free choice, but did most of the people watching the buildup over more than a year to hex realize that sending one ETH, currently 0.01984893 BTC would produce more Hex than a whole bitcoin? Without the lure of free Hex for bitcoin, would the current level of interest have built up for the same proposal of a DeFi Certificate of deposit in exchange for ETH?
I'm pretty sure they do realize that because the ratio of HEX/ETH is shown on the site, which is why thousands of ETH is being converted to get a big bag of HEX at a better rate than free claim. The ''lure'' of free HEX is smart, it's called good marketing.
Ethereum hex flush address: 0xDEC9f2793e3c17cd26eeFb21C4762fA5128E0399
Hex was supposed to be on EtherDelta, does anyone know why I can't find it on the exchange? Nothing comes up. How are people buying/selling the hex tokens? I'm searching for "hex" on front page
EDIT: Not making any judgments either way, I'm just coattail-chasing the top comment so my question is seen.
I recall a video before the recent bull run where he basically instructed people to sell so they could make more money on the obvious dip he saw before the bull run.
What a great call. Such a nice guy to share his valuable insight with us so we could all make money.
This is a pretty devastating write up, but the plan was always that Richard would be the #1 whale of this thing, and then that he will advertise the hell out of Hex, and onboard the world, and that will eventually pump the price. Could that work ? Its unknown, but he's going pretty hard on it so far, with tons of videos and swag. What is known is the Adoption Amplifier will dump the price to near zero, because of the absurd number of Hex being sold daily. IMO, its still worth free claiming this thing, just on the off chance that Richard can make this thing somehow work. Remember, him having lots of Hex is useless, if its value is 0. There is a huge 100 billion Hex reason for Richard to shill the hell out of this thing, and maybe that can work, it only costs like a dollar of Eth to claim and stake Hex from your Btc, so why not ? Use my link and get +10 %. I suggest not using the adoption amplifier, as you will almost certainly lose money, at least initially, until it ends after 1 year and Hex has a chance to bounce back.
Its unsettling just how much Hex will end up with Richard from the bonuses. Its hard to see a crypto succeeding when the founder owns 50 % of the tokens, Richard likes to mock Ripple and XRP, but Hex will be the new XRP, where the creator owns most of it.
I'm not saying that some level of success isn't possible, but there is no reason to give the founder a huge percentage of the total, as opposed to not doing it. Now did Richard shill the hell out of this thing ? Yes, yes he did, and I could see some of the Hex going to him, but, IMO, the amount is more than would be ideal. I would prefer just giving half the penalties to the origin address. This would take time to accumulate, but it would reward the creator in perpetuity, and the reward would increase with success, and pay out without limit. By giving a copy of every bonus, it just gives all the Hex to Richard. Which may still work, but it could also dump the price, its just a large unknown that isn't really needed, IMO. Because Richard both gets Hex and penalties, he can also break his own large stakes at will and suffer much less than normal users, so its very self-dealing to have both arrangements.