Key Takeaways
- HEX is a time-locked, high-yield cryptocurrency that runs on Ethereum and PulseChain;
- Users can stake HEX crypto coin for periods up to 15 years to earn rewards from daily inflation, with some advertised yields reaching triple digits;
- The project has faced heavy criticism and legal action, but the SEC dropped its fraud case in 2025, easing some regulatory pressure.
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Have you heard about the crypto project that has a 555-carat black diamond named after it? If not, you're about to, because I’m here to tell you what is HEX crypto, why it got so much attention, and why you cannot get it on popular CEXs like Binance.
Some call it a smart, high-yield blockchain savings tool, others see it as a red flag wrapped in high-yield promises and flashy marketing. After all, it has quite a colorful story so far, from an SEC lawsuit to an outspoken HEX crypto founder.
So, let’s see what happened to HEX crypto, why it’s controversial, and whether it still has a future.
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Table of Contents
- 1. What is HEX Crypto?
- 1.1. HEX Connection to PulseChain
- 1.2. How Does HEX Work?
- 2. Community and Controversy
- 2.1. HEX VS SEC Legal Saga
- 3. HEX Market Performance and Volatility
- 4. Future Outlook: Will HEX Survive?
- 5. How to Buy HEX Crypto
- 5.1. How to Buy HEX on Ethereum (eHEX)
- 5.2. How to Buy HEX on PulseChain (pHEX)
- 6. Conclusions
What is HEX Crypto?
To make sure you fully understand what is HEX crypto, I’ve gathered all the important info into this article, drama included. Let's start at the beginning.
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Generally, you can think of HEX as a do‑it‑yourself, high‑yield savings account built on a blockchain. It was launched on December 2, 2019, by serial entrepreneur Richard Heart (real name Richard James Schueler), the HEX crypto founder you’ll see quoted all over social media.
HEX began its journey with a year-long "Adoption Amplifier" distribution that minted billions of tokens daily. For every batch released to the public, an Origin Address (OA) received a matching amount, and it still controls an estimated ~90 % of all HEX, which is one of the main centralization red flags critics cite.
The project promised to turn the traditional certificate of deposit (CD) model into a fully on‑chain experience, rewarding users who lock up their HEX tokens for months or even years at a time.
FYI, a traditional CD is a time‑locked savings product offered by a bank or credit union. You deposit a fixed amount of money for a set term and, in return, get a guaranteed interest rate that’s typically higher than a regular savings account.
Since you’ve promised to keep the funds untouched, the bank uses them for lending and other activities. If you withdraw early, you usually pay a penalty that eats into the interest you earned (or even exceeds).
Getting back to HEX, it primarily is an ERC‑20 asset. It’s based on Proof-of-Wait, otherwise known as Proof-of-Elapsed-Time, which works this way – you stake HEX, wait out the timer, and earn newly minted HEX as interest. The longer you commit, the bigger your share of the daily inflation pool.
However, if you withdraw early, the contract will take a chunk of your principal, which is an on‑chain version of the "early withdrawal penalty" people know from bank CDs.
That simple carrot‑and‑stick design is why HEX is called "the first blockchain CD".
HEX Connection to PulseChain
While looking for what is HEX crypto, you’ve probably noticed PulseChain popping up once or twice. Why is that?
Well, PulseChain is Richard Heart’s purpose‑built Layer‑1 fork of Ethereum, launched on May 13, 2023, to make transactions faster and cheaper for HEX users. At genesis, the team copied the entire Ethereum state, so every wallet instantly received a mirror balance of every ERC‑20 asset they held, HEX included. This resulted in two live versions of the token:
- eHEX – the original HEX that still lives (and stakes) on Ethereum.
- pHEX – the PulseChain clone that launched for free in every holder’s wallet.
And yes, everyone who held any ERC‑20 tokens or NFTs on Ethereum at the time of the snapshot got free copies of those assets on PulseChain. However, only HEX had a large, active community ready to support and trade both versions, so most people mainly talk about the HEX airdrop when discussing the PulseChain fork.
PulseChain runs a Delegated Proof‑of‑Stake engine with a native coin called PLS. Its block times average about three seconds, which is far quicker than Ethereum’s 12+ seconds.
Along with PulseChain came PulseX, a decentralized exchange built as a fork of Uniswap, designed for trading tokens on the new network. It also has its own native PLSX token used to reward liquidity providers.
Plus, the permissionless PulseChain Bridge was also launched (forked from Omnibridge). It lets users wrap eHEX and move it to PulseChain.
In short, PulseChain, PulseX, and PulseChain Bridge were created for HEX enthusiasts, with a promise of faster and cheaper transactions.
How Does HEX Work?
I’ve already told you briefly how the project works, but let’s look deeper into what is the whole HEX crypto yield-bearing process. Technologically speaking, HEX is an immutable smart contract on Ethereum (and PulseChain) that turns your deposit into a time‑locked "share" position. The process looks like so:
1
Stake start (burning for T‑Shares). When you "stake" HEX, the tokens are burned and the contract issues T‑Shares ("tracker shares") in return. The amount of HEX required for one T‑Share rises over time via a "share rate" that can only move up, making earlier stakes proportionally more lucrative.
2
Daily inflation + penalties. Each midnight UTC, the contract inflates the total supply by up to 3.69 % of all HEX per year and divides that pool (along with any penalties from impatient stakers) among all outstanding T‑Shares. Your share of that payout accumulates automatically, so there’s no validator work or network security duty involved.
3
Early exit discipline. If you end a stake before serving half its term, the contract slashes both your unpaid interest and a slice of principal. After halfway, though, only the interest is forfeited. Those forfeited HEX boost the next day’s rewards for everyone else.
4
Stake end (minting back HEX). On or after your chosen end date (anywhere from 1 to 5,555 days) you "end stake". The T‑Shares vanish, and the contract mints back your original principal in addition to the accumulated yield. Because the share rate ratchets upward whenever a large profitable stake ends, future stakers must lock up more HEX (or for longer) to capture the same reward stream.
Why is this not ordinary staking? Typical Proof‑of‑Stake (PoS) tokens help secure their base chain[1] and can usually be withdrawn after a short cooldown with no loss of principal.
HEX, on the other hand, has nothing to do with securing the network; its returns come from programmed inflation and peer penalties, and breaking your time commitment incurs those penalties. This is the reason why analysts frame HEX as a high‑yield, high‑risk time deposit rather than a conventional PoS asset.
📚 Related: Ethereum Staking Explained
Community and Controversy
I told you I’ll give you the drama, so now that you’re quite well versed in what is HEX crypto, it's time to see what the fuss is about.
Let's start with HEX fans who call themselves the "HEXicans". They are highly active on X, Telegram, and YouTube. Community volunteers get branded merch, share memes, and make quick pitches about long‑term stakes. This kind of community activity helps keep HEX in the spotlight, even when market interest drops. It means HEX has a loyal, self-driven user base that acts as its own marketing engine.
HEX founder Richard Heart’s own flashy persona (think designer tracksuits and Rolex hauls) sets the tone and frequently lands in headlines, for better or worse.
To promote the project, he has undertaken numerous expensive initiatives, including funding major real-world advertising campaigns for HEX, such as London bus wraps and sports venue billboards.
Richard Heart even bought The Enigma, a 555.55‑carat black diamond that holds the Guinness World Record for the largest cut diamond, and then named it "The HEX.COM Diamond".
Critics argue that such culture reinforces a pyramid‑like incentive loop: early players benefit most if they convince newcomers to buy HEX and lock it up, while the mysterious Origin Address still controls the majority of supply.
Skeptics also say Heart’s aggressive marketing and the community’s habit of calling all criticism FUD are red flags that remind them of risky, high-yield investment schemes.
After all, Heart is known for his early days running online marketing guides under names like "Spam King" and "Richard J. Scheuler", where he taught affiliate marketers how to maximize clicks using psychological pressure and controversial tactics.
While he’s since rebranded as a crypto founder and philanthropist, critics argue that HEX’s viral marketing and emotionally charged messaging still reflect those same old-school, attention-grabbing playbooks.
Now, supporters counter that the project is legit because HEX’s smart contract is open-source and can’t be changed, which makes it transparent and predictable.
They also point out that long-term stakers have seen big returns during bull markets. Plus, the community raised $27 million in 2022 for SENS life‑extension foundation, showing it’s one of the more generous groups in crypto.
Besides, to counter all the allegations (including being a Ponzi, pyramid, and any other type of scam), HEX even has a dedicated page on its website. Here is one of the arguments from there:
Bitcoin and HEX are analogous. HEX is like Bitcoin but better. Bitcoin is not a scam.
I'll be honest, I'm not really sure this is a valid argument. Just because Bitcoin isn’t a scam doesn’t automatically mean HEX isn’t one either, especially since HEX does not even work like Bitcoin (if anything, it's more like Ethereum).
Still, it's worth noting that HEX has been around since 2019 and hasn’t disappeared, rugged, or shut down, which is something many actual scams do quickly.[2] That doesn’t prove it’s risk-free or fundamentally sound, but it does suggest it’s not a short-term cash grab.
Love it or loathe it, the HEX project, its community, and Heart are impossible to ignore. I’d say their energy is both the project’s loudest marketing engine and the lightning rod for every accusation of hype‑driven risk.
📚 Related: How to Spot Bitcoin Scams
HEX VS SEC Legal Saga
All that controversy behind HEX didn’t go unnoticed by the SEC, which eventually resulted in courtroom action. Here’s how everything unfolded:
2021–Early 2023 – Smoke but No Fire
Long before regulators stepped in, analysts and YouTubers warned that HEX’s OA concentration and "high‑yield" marketing could invite securities scrutiny. Those rumblings intensified as Heart teased PulseChain and PulseX, saying publicly that billions had been "sacrificed" for the new networks.
July 31, 2023 – SEC Lawsuit Lands
The action started when the SEC filed a civil complaint in New York alleging that HEX, PulseChain (PLS) and PulseX (PLSX) were unregistered securities and that Heart had used $12.1 million of the reported $1 billion raised for personal luxuries.
This includes buying supercars and The Enigma black diamond. The agency wanted Heart and his companies to pay back the money, face fines, and be banned from doing similar activities in the future.
April 8, 2024 – Motion to Dismiss
Heart, who was living in Helsinki at the time, asked the court to throw out the case. He argued that the SEC had no jurisdiction because the "sacrifice" transactions weren’t directly connected to the US, and the project’s marketing didn’t specifically target US investors. His legal team claimed the case was an overreach by a US regulator.
August 22, 2024 – SEC Pushes Back
The SEC responded, claiming Heart did target US investors through livestreams, interviews, and online appearances aimed at an American audience.
They also repeated their claims that he used millions in raised funds to buy luxury items, including watches, cars, and expensive jewelry. The agency argued this supported their case that the offerings were unregistered securities sold under false pretenses.
September 13, 2024 – Finnish Twist
In a separate case, Finnish police launched a major tax evasion investigation against Heart. They accused him of failing to pay taxes between 2020 and 2024 and issued a remand order to detain him.
Authorities later escalated the case by securing an Interpol Red Notice, also citing an unrelated assault charge as part of their legal actions.
January 7, 2025 – Asset Seizure
While trying to locate Heart, Finnish authorities seized $2.6 million worth of Rolex watches from a luxury apartment tied to him. The watches were part of a broader tax investigation, and officials believed they were bought using undeclared income. Heart was not present at the time, and the seizure fueled speculation about whether he was intentionally avoiding authorities.
February 28, 2025 – Judge Tosses Fraud Counts
US District Judge Carol Bagley Amon threw out the SEC’s fraud allegations, saying the agency hadn’t proven that any of the transactions or investors were based in the US. While the judge allowed the SEC to revise its complaint, the dismissal was seen as a major legal win for Heart, especially since fraud was the most serious charge.
April 21, 2025 – SEC Bows Out
The SEC informed the court it would not refile the fraud case, effectively ending that part of the lawsuit.
Heart publicly celebrated the news on X, calling it "regulatory clarity" for HEX, PulseChain, and PulseX. For supporters, it was a turning poin – for critics, questions still remained.
Where Things Stand Now (Mid‑2025)
As of writing, there is no active US fraud case. Securities registration questions linger, but the agency’s appetite to pursue them appears muted. However, the Finnish investigation is still ongoing.
Heart remains at large, and tax authorities continue to examine alleged multi‑million‑euro under‑reporting. Nonetheless, the legal victories sparked short‑term price jumps across HEX, PLS and PLSX, but liquidity remains fragmented and volatility is extreme.
For investors asking what happened to HEX crypto in the courts, the short answer is: the biggest US threat has receded, yet cross‑border tax and compliance shadows still follow Richard Heart, and by extension, the project he created.
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HEX Market Performance and Volatility
How did all this hype and drama affect HEX crypto coin performance?
Since its launch in late 2019, HEX has experienced extreme price movements. In its first major run-up, the token rose over 10,000% from its early lows, reaching an all-time high in September 2021. This growth attracted both attention and skepticism, with some calling it one of the most successful self-promoted altcoins in crypto.
However, like many other assets, HEX’s price crashed after the 2021 bull market. Between late 2021 and 2023, it lost more than 90% of its value, and trading volumes dropped significantly on Ethereum.
A rebound followed the launch of PulseChain in May 2023, when a new version of HEX (pHEX) appeared on the cheaper network. For a time, this brought renewed interest and higher activity, especially on PulseX. Still, prices on both chains remained volatile and far below previous highs.
These price cycles have closely mirrored broader altcoin trends. When sentiment in DeFi improves, HEX often benefits. However, during bearish periods, its illiquidity and split markets make it more vulnerable to sharp drops.
This leads to the common question: is HEX crypto dead? The answer depends on how you define "dead". On-chain, the project is still active – users continue staking, new wallets are created, and developers support PulseChain. But in terms of price and public interest, it’s no longer in the spotlight like it was in 2021.
Future Outlook: Will HEX Survive?
Looking ahead, HEX faces a mix of potential outcomes. The SEC dropping its fraud case in early 2025 gave the project a legal win, but regulatory questions around unregistered securities remain.
Meanwhile, PulseChain adoption could help HEX stay relevant if the network gains traction, but it still lacks the user base and integrations seen on larger chains.
HEX’s future also depends on broader DeFi trends. If investor interest in high-yield staking products grows again, the project could see a second wave of activity. On the other hand, continued price stagnation, low liquidity, or further legal challenges could limit recovery.
In short, HEX is still running in the technical sense, but it's far from the peak hype cycle. Its long-term success will depend on adoption, transparency, and how well the project can evolve beyond its controversial past.
As with any crypto asset, do your own research and understand the risks before investing.
How to Buy HEX Crypto
If you’re wondering how to buy HEX crypto, the only way as of writing is through a decentralized exchange. HEX is not listed on major centralized exchanges, likely due to regulatory concerns and low trading volumes.
So, you’ll need a crypto wallet and some basic familiarity with DEXs like Uniswap or PulseX.
How to Buy HEX on Ethereum (eHEX)
One of the places where you can buy HEX crypto (to be more specifically, eHEX) is on Uniswap v3 using ETH. Here's how:
![What is HEX crypto: buying ETH with fiat on Binance via the [Buy Crypto] feature.](https://assets.bitdegree.org/images/what-is-hex-crypto-buy-eth-binance.jpg "What is HEX crypto: buying ETH with fiat on Binance via the [Buy Crypto] feature.")
FYI, liquidity on Uniswap can be limited. Large trades can cause a significant price impact, meaning you’ll get fewer tokens than expected.
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How to Buy HEX on PulseChain (pHEX)
If you’re wondering where can I buy HEX crypto with lower gas fees, PulseChain is a cheaper alternative, and pHEX trades primarily on PulseX. Steps are quite similar, too:
PulseChain and PulseX are newer and not as battle-tested as Ethereum and Uniswap. There are fewer audits, and support resources are limited.
Whether you choose Ethereum or PulseChain, take time to understand the platform and double-check token contracts before swapping. When in doubt, start small.
Browse our collection of the most thorough Crypto Exchange related articles, guides & tutorials. Always be in the know & make informed decisions!
Conclusions
To answer what is HEX crypto, I’d say it’s anything but ordinary. From its unique staking model and high-yield promises to legal challenges and flashy headlines, it has sparked both strong support and serious criticism. While the SEC dropping its fraud case in 2025 gave the project some breathing room, questions around regulation, centralization, and long-term value still remain.
Whether you see HEX as an innovative blockchain CD or a risky experiment depends on how you weigh those risks. What’s clear is that the project isn’t dead – on-chain activity continues, and the PulseChain ecosystem seems to be still evolving.
If you decide to buy HEX, you can only do that on DEXs like Uniswap or PulseX using a non-custodial wallet like Binance Wallet or Ledger Flex. Just don’t forget to weigh the risk – in crypto, bold ideas often walk a fine line, and HEX is a perfect example of that.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Saleh F.: 'Blockchain without Waste: Proof-of-Stake';
2. Bartoletti M., Lande S., Loddo A., Pompianu L., Serusi S.: 'Cryptocurrency Scams: Analysis and Perspectives'.
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