A Part Two, Because I Missed Something Big
My friends, are you ready for a part two? I recently did a video called Hex, PulseX, and PulseChain Honest Review, and you all asked for a second version of it. The truth is I missed a key point in there, and my man Trayvon helped me figure it out. So that first review was something I put together about a week ago, and then Trayvon went in and did his own review of my video. What he found is something that, if you are even considering Hex, PulseX, or PulseChain, you will really want to know about, because wow. In my initial review I didn't catch this, but it all makes sense now.
If you go to hex.com, it looks really good on the surface, right? Hex takes average 38 percent returns a year. I spent the first half of my last review just destroying Hex, and then Trayvon gave me some data that makes it even clearer how much this sucks.
The Liquidity Trap Behind Hex's Price
One of the reasons Hex has been able to build such a big market is because it's not on centralized exchanges with huge amounts of liquidity. Long story short, in my view the price of Hex appears to be drastically, artificially inflated by having relatively small liquidity behind it. For example, there's a little over $10 million in liquidity. If you wanted to sell your Hex, the most you could sell would be maybe $10 million or so today, and that would use up all the liquidity. Maybe somebody else would put some in. Maybe the price would crash. Who knows? But basically, if you've got huge amounts of Hex, you can't just sell it.
To me, this is such an obvious scheme from the outside. From the inside, of course, it looks great, because all the people who've bought in at a price that's way higher than it really ought to be have gotten you rich. So that's good for you, but everybody who hasn't gotten their money back out of this yet might not be so lucky.
The One Point I Didn't Realize the First Time
Here's the point I'm about to give you now, the one I missed. If you look on hex.com, it says that to lower transaction gas fees, Richard Heart is building a new Ethereum. It's an Ethereum fork called PulseChain. On the surface, that is the reason for building PulseChain: an Ethereum fork that's supposed to be a better version of Ethereum.
Which reminds me a lot of something. Bitcoin Cash was supposed to be a much better Bitcoin. This is what we're going to switch to, they said. It got all hyped up and pumped up as high as it got, to almost $4,000 all-time high, and then it sold off. And yeah, look at this crap now. Bitcoin Cash was $117 today. This was supposed to be the new Bitcoin. They made a Bitcoin fork into Bitcoin Cash. Bitcoin is $20,000 today, and Bitcoin Cash is $100. My prediction is that PulseChain and PulseX are going to go the same direction.
Understanding the Sacrifices
Here's the real reason I think Richard Heart created PulseX and PulseChain. PulseX is the exchange for PulseChain, and PulseChain is the Ethereum fork. They're basically just copying a blockchain, like Bitcoin Cash did. They're going to take the Ethereum blockchain and make it "better."
There were over $1.5 billion sacrificed to generate the new PulseX and PulseChain that will get delivered to the sacrificers. Do you see where I'm going with this? Look at the coins that were sacrificed here. If you're brand new and you're wondering what a sacrifice is, a sacrifice is where people sent their HEX, Ethereum, USD Coin, and all these other ones. They were sent as a sacrifice, basically handing the money over to whoever's on the other side, saying, maybe we'll get something, maybe we won't. We're not going to earn off the work of others. And then there's going to be an airdrop of PulseX and PulseChain that will be worthless to begin with, but the market will set the value of it.
Now notice this. The majority of what was sacrificed was HEX. About $500 million of HEX was sacrificed for PulseX, and I'm going to guess over $300 million for the other one, if the distribution is similar. I didn't see the exact distribution for both, but if you check some of the individual transactions on the 29th, you can guess the distribution will be similar. So you can estimate that over half of what was sacrificed was HEX for both of these. We can estimate that over $700 million, maybe $800 million worth of HEX was sacrificed.
My Grand Conclusion
Now let's go back to that liquidity pool. Are you putting these together? Here's my grand conclusion. I think the real reason Richard Heart created PulseX and PulseChain, the real driving, motivating factor, is to help people cash their HEX out. That's the real reason for creating this. Because these people holding half a billion dollars of HEX can't just sell it. But through a very clever system Richard Heart set up, and this is all speculation at this point, you copy the Ethereum blockchain, make a little testnet, and here's the real goal: help these people with over half a billion dollars of HEX get their money out of HEX. Get rid of all this HEX and get it into PulseX and PulseChain.
These people who are holding something they couldn't really sell will probably see the market give PulseX and PulseChain some real value, and those will probably be traded pretty widely. So people holding huge amounts of HEX who couldn't sell it, now through sacrificing it and getting an airdrop, don't have to pay any tax on it, and can cash out through PulseX and PulseChain.
So what does this mean in the bigger picture? If you did not sacrifice HEX, your value is getting diluted by massive amounts of HEX. If you sacrificed Ethereum, to me that has very real value; that could easily be sold on any exchange. If you have a small amount of HEX, that has real value too. You can unload your $1,000 of HEX or whatever, and it's not going to make a difference. But if you're holding $100 million in Ethereum, you could unload all of that at the market price today. It might move the price a little bit, but you can do it. Basically, if you sacrificed anything besides HEX, you got the value of what you sacrificed seriously diluted by everybody who sacrificed HEX, who according to these leaderboards and multipliers will get the majority of the new coins. All of this was used to cash out the HEX.
If you sacrificed any of these other coins, in my opinion you probably are going to lose a whole lot of what you sacrificed. And if you sent your HEX, you're going to get a chance to cash it out without crashing the HEX price. That sounds like a great deal, doesn't it? If you've got all this HEX, it does. But for everybody else, this is probably what you're looking at: the price of PulseX and PulseChain may pump at some point, but realistically, it'll be nearly worthless someday.
My Verdict: Stay Away
So my opinion is to absolutely stay away from HEX, PulseX, and PulseChain. In my view this is all going to come down. It's a house of cards. It's all about printing money while selling people on something that looks good on the surface, but the fundamentals are real sketchy and real weak, and the whole thing is waiting to fall apart. So would I add HEX, PulseX, or PulseChain to my holdings as a potential investor? Absolutely not, no way. If you want to see how I've broken down other coins and projects the same way, you can go through my Crypto Reviews playlist and judge for yourself.
If you want to go deeper into any of this with me, I'd love for you to join the Jerry Banfield Family, where you can text me directly and we can talk it through.
And Richard Heart, why don't you just say it? One of the big motivations for you creating these was not lowering gas and transaction fees. That's your public pitch. I know people don't usually call out stuff like this in public, it's usually behind closed doors, but I'm going to call it out. This is why I believe you created PulseX and PulseChain: to help people exit through a scheme kind of like the one Bitcoin Cash went through. Thank you very much, my friends, for reading this. I hope it was useful for you, and let me know what you'd like to see me cover next. I love you all, and I appreciate you following along to the end.