The creator of a certificate of deposit (CD) for the cryptocurrency industry, HEX, has had a disappointing start to 2022. It’s lost 35 percent of its worth. But it gained an 11 percent increase today (7 January) has tempered some of the blow.
Its value had more than doubled in December, with a 20% increase on the 30th. The initiative provides blockchain-based deposit certificates (CDs). It drew in cryptocurrency investors by offering them profits. If they locked up their HEX investments for a timeframe ranging from one to 5,555 days.
Richard Schueler, popularly known as Richard Heart, released HEX in December 2019. Heart is a successful entrepreneur, author, YouTube celebrity, philanthropist, and inventor of the PulseChain network. He raised more than $27 million for medical research.
HEX Certificate of Deposit
As per HEX’s official site, the program intends to be the world’s first cryptocurrency certificate of deposit (CD). In conventional banking, a CD is a commodity that pays a customer a marginally higher rate of return than an ordinary savings account after the consumer decides to lock up the funds for a set length of time. A HEX CD works similarly to a regular bank account. It gives a yield to investors who want to lock up their HEX assets for a predetermined amount of time, ranging from one day to multiple years.
HEX purports to use a proof-of-wait (PoW) protocol, which does not necessitate miners to participate. Instead, investors create new tokens to keep HEX for the duration of the agreed-upon holding time. When the holding term expires, the HEX smart contract is programmed to generate new tokens in order to repay the holder, who now constitutes a miner in this environment.
HEX is an Ethereum-based second-layer (L2) application (a scaling off-chain application that aids in increasing performance on the main chain) that a smart contract backs that govern the production and allocation of tokens for investors. Based on the holding period, HEX currently guarantees a 40% average annual percentage yield (APY).
Once the lock-up term expires, HEX coins are to settle existing holders. The idea’s design for when the price rises, the total quantity of HEX coins’ required production to pay back users decreases. However, if the price drops unexpectedly, token inflation will escalate since more tokens will need to pay the same rate.
In essence, the project’s structure ensures consistent pay for individuals in HEX tokens. Because the price has risen dramatically in the past, new investors have jumped on board in the hopes of profiting from the token’s higher APY and future price gain.
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