. What is HEX Coin? Here is the Crypto Currency HEX Token in All Details – In this article, What is HEX Coin? We will answer the question and try to present details about the project.
HEX Coin Nedir?
A new cryptocurrency-based financial instrument industry known as HEX is taking shape, but what is HEX, what does it do, and how do you get involved?
Calling itself the world’s first blockchain-based high-interest deposit certificate (CD), Hex promises to do what financial institutions have been doing for centuries.
HEX – an ERC-20 based token – was created by Richard Heart, a crypto enthusiast and early adopter of Bitcoin. HEX has a lot of excitement to live with, promising to increase value “faster than anything in history”. So how does this work?
HEX shares many parallels with traditional CD. One of the important differences is that investors deposit HEX instead of fiat and receive their original investments together with the interest they owe when the fixed term expires. Moreover, interest paid in traditional CDs often does not keep pace with the rise in inflation through monetary expansion. HEX, on the contrary, aims to actively inflate and maintain this high value.
For Heart, a financial tool like CD is one of the critical elements missing in the crypto ecosystem. While HODLing is a very important part of the industry – implemented by many investors – it does not have its own benefit, apart from the inherent risk and reward volatility offers. The problem with extreme volatility is that it can go either way.
Instead, Hex offers a way for Bitcoin holders to get interested in their crypto while HODLing. Locking the HEX of the holder for a fixed period encourages appreciation of the token.
This works in a similar way that Bitcoin miners affect the market. Often times, when the market shows a bearish trend, miners refuse to sell their BTC. This weakens the market supply, reduces selling pressure and thus increases the price.
However, it is much more typical for miners to surrender against a falling market and sell instead of HODL – especially when it comes to the pressure to sell mounts. In the case of HEX, where supply is controlled, investors are motivated to keep their funds locked (in other words, to equity them). This reduces selling pressure and increases market value. It is given back to investors instead of inflation bonuses to miners.
How does HEX Staking Work?
While the Bitcoin miners analogy is useful for explanation, there is actually no involvement of miners in HEX. Investors promise to hold HEX for a certain period of time while staking. By doing this, it gives interest credit on a percentage of the staked HEX. This payback percentage depends on how many HEX holders stake at any given time. If only 1% of the owners own shares, the annual return on investment (ROI) can exceed 369%. If 10% of the owners hold shares, the average return on investment of staking holders will decrease to 36.9% and so on. If a maximum of 99% of HEX holders hold shares, a minimum 3.69% ROI will still be offered to staking holders.
The longer the staking amount is held, the more bonus is received. For example, Hex rewards investors with a 20% bonus share payable on all share commitments for one week for each extra year of share commitment.
When staking through the Hex.win website, interest payments are allocated in HEX on the expiration date of the staking period. When this period expires, the owners can either re-bet or sell the tokens.
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