HEX investors are waiting with bated breath after 36 transactions of 1,337 ETH left the smart contract address associated with the project this week.
At the time of writing, the value of the ETH transferred out of the HEX contract is around $7 million.
Richard Heart, HEX’s founder, has denied any involvement in the transfer. While he has remained unusually silent on Twitter, he did retweet the following from the HEX account:
Remember, in HEX, you must have no expectations of the work of others. Even if you see ETH move. You must not expect marketing. You must not expect a price floor.
— HEX.com 40% APY & 3866x price in 558 days!⬣🚀🌘 (@HEXcrypto) January 6, 2020
However, it’s currently unclear which parties other than Heart have access to the HEX smart contract and who is responsible for the ETH transfers.
Some members of the crypto community are suggesting it’s the beginning of a potential exit scam.
The funds, which started moving on January 6, have not been sold or moved on to new wallets yet. Every single wallet is unique, and no two transfers arrived in the same wallet.
According to Etherscan, there are over 11,000 HEX holders, with around 7.2 billion HEX in circulation.
With the smart contract address now almost totally empty, HEX investors are waiting to see where the funds are sent next, or if they are sold off completely.
A textbook Ponzi scheme?
HEX has caused widespread controversy among crypto enthusiasts. While some have reaffirmed that it’s a legitimate project, others have resigned it to the realm of Ponzi schemes.
The source of the scepticism surrounding HEX comes from Heart’s own claims, which include promises of 10,000x returns in 2.5 years and an increase in value faster than any asset in history.
In reality, HEX has declined over 90% in value since mid December, reaching its all-time low last Sunday.
Naturally, the majority of crypto holders saw through the thinly disguised elaborate marketing ploys, but nevertheless the HEX purchase contract has received more than 33,000 ETH to date.
HEX’s reputation has also been made worse through its endorsement by Trevon James, an infamous YouTube shill who was previously a BitConnect affiliate.
James made sweeping recommendations to his subscribers before Christmas to send all of their ETH to the HEX contract, and also made a video entitled “Five reasons why you should look at HEX”.
You can find out more about HEX here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.