In the aftermath of a lawsuit implicating the founder, the value of HEX, a cryptocurrency project, plunged by a staggering 35%. This has sparked a surge in token sell-offs as anticipation of a further downturn intensifies. The HEX price plummeting by 35% occurred just a week after the Securities and Exchange Commission (SEC) brought charges against Richard Heart, the founder of the project.
SEC Accusations and the Impact on HEX
The SEC contends that Heart duped numerous investors through the unauthorized sale of unregistered cryptocurrency assets, which were classified as “securities.” The commission stated, “Each of the Hex, PulseChain, and PulseX offerings involved investments of money in common enterprises with the reasonable expectation of profits to be derived based on the efforts of others. Accordingly, the Hex, PulseChain, and PulseX offerings were securities offerings. At no time did Heart (or anyone else associated with these offerings) register the Hex, PulseChain, or PulseX offerings with the Commission.”
HEX: The First Blockchain Certificate of Deposit (CD)
Dubbed as “the first blockchain Certificate of Deposit (CD),” HEX was launched by Heart in 2019 as an Ethereum-based cryptocurrency project. It provides investors with a mechanism to earn interest on their “locked-up” HEX tokens. Data from Elastic reveals that since its launch, a staggering 60.1 billion tokens have been staked. At the time of writing, there are still 49,764 staking positions open, while 372,154 positions have been closed.
HEX’s Market Performance
The token was trading at $0.005931 when the news of the lawsuit broke. This led to sellers regaining market control, overpowering buyers. The Directional Movement Index (DMI) of the token showed a negative directional index (red) at 32.89, solidly above the positive directional index (green) at 18.20. This indicates that the selling pressure among HEX daily traders surpassed the buying pressure.
The Awesome Oscillator, a momentum indicator that compares the closing prices of an asset over different periods, showed red histogram bars below the zero line for HEX. This suggests a bearish sentiment in the current price movement.
According to data from Santiment, HEX’s exchange reserves have been steadily rising since the lawsuit was filed. Over the past week, the token’s supply grew by 27%. However, its supply outside of exchanges remained flat as most investors opted to sell. There has also been a noticeable drop in network activity over the past week, with the count of daily active addresses falling by 66% since 31 July.
As the HEX price plummeting continues to unfold, it’s crucial to stay updated on the market trends and your investment portfolio. Tools like cryptoview.io can provide real-time insights and data to help you make informed decisions. Remember, the cryptocurrency market is highly volatile and it’s important to monitor your investments closely.
