The collapse of Terra (LUNA-UST) in May had a negative impact on the entire market, including Bitcoin and Ethereum. However, the market has not yet recovered from the threats of algorithmic stablecoins. This altcoin project also threatens the price of Bitcoin and Ethereum.
Is Hex the next Terra LUNA?
Bitcoin is currently trading at $20,000, down 70% from the ATH price. Altcoins like Ethereum have experienced steeper declines in their prices. Still, a controversial cryptocurrency with a market cap of $5 billion is facing dump allegations after its price dropped 90% from the ATH level.
The related altcoin Hex is an Ethereum-based cryptocurrency. However, many experts criticize Hex tokens for penalizing those who do not stake. Instead, the system rewards those who hold Hex tokens in what is known as staking.
Hex founder speaking
Meanwhile, Protos, a media outlet, claimed that founder Richard Heart sold out all the BTC and ETH investors used to buy Hex on the launch date. The report also states that Heart withdraws funds from wallets to receive Hex fees. Heart did not comment on the claim before Protos released the report.
In terms of price, Hex has been down for a while and has lost more than 90% from the ATH price in 2021. The price drop is deeper than the 70% Bitcoin and Ethereum. In a recent interview, Heart revealed that it plans to launch Pulsechain, the network’s anticipated Hex-linked Blockchain. Heart and Hex introduced Pulsechain as an Ethereum fork last year.
Heart also claimed that Pulsechain will switch to a PoS mechanism before the Ethereum merge. At that time, users who wanted to earn Pulsechain tokens (PLS) in the airdrop were asked to sacrifice other cryptocurrencies such as Hex or Ethereum. Heart told Bloomberg in June that about 45% of Hex’s circulating supply is in two crypto wallets. He also said that Pulsechain will be replaced by PLS at launch. However, repeated delays in the launch of Pulsechain have some people wondering if the planned launch will ever happen.
Could it cause a Terra (LUNA)-like effect?
In another interview with a popular YouTuber, the Hex founder said that he would not approve any program for the launch of Pulsechain. However, a possible Hex collapse is unlikely to be as effective as Terra anyway. Bitcoin investor Mike Alfred explains that the Hex crash will not affect the market:
It looks like a parallel economy and will fail in slow motion due to the protocol’s reward token locks being set.
Still, Heart insists that the Pulsechain launch will increase the price of Hex. cryptocoin.comAs you follow, HEX price is trading at $0.03828, +8% over the last 24 hours.
