Heart, speaking to Kitco News, compared the scam claims leveled against Hex to what transpired with Bitcoin in its early stages.
In response to worries about Hex’s “Certificate of Deposit” method and the unsustainable large payouts it creates, Heart argued that relying on third parties to produce yield is how individuals lose money. This approach, he adds, goes against the spirit of Bitcoin.
To demonstrate his point, he listed a slew of exchange hacks and scandals. Mt. Gox, Quadriga CX, KuCoin, and Binance hacks are among them.
Rather, Heart claimed that he created Hex in the essence of cryptocurrency. Moreover added creating it in the manner in which it should function. Consumers do not depend on centralized third parties to make revenue in this way. This, in his opinion, is the complete antithesis of a Ponzi scheme.
The essence of crypto according to Heart
You generate your own incentives. You possess your own keys. No one can prohibit you. Finally, no one can switch it off, says Heart. Indeed, only you can earn your rewards; you can’t turn the contract off, and you can’t turn the trade-off. It’s lovely, it’s flawless, and it’s the absolute antithesis of a Ponzi scheme.
The phrase Ponzi scheme comes from the narrative of Charles Ponzi, an Italian expatriate to the United States who duped tens of thousands of people into investing in his stamp-based money-making scam.
Accepting money from today’s investors to settle debts owed to yesterday’s investors was the major strategy in play.
Critics leveled a similar charge against Hex. Furthermore claiming that tokens ‘ creation was out of thin air and that the newer currencies employ to cover the interest rate on older coins.
According to Heart, when participants owe money that cannot be reimbursed, Ponzi schemes fail. According to him, Hex is built in such a way that consumers will always be able to generate what they are owed.
Notwithstanding the controversy, Heart remained steadfast in its explanation of why Hex is equivalent to well-known currencies like Bitcoin and Ethereum.
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