What is HEX? Why is the Price Rising?

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Time and again, cryptocurrencies have been amazing investors. Bitcoin became the first crypto to enter the global market. This was followed by many other cryptos making their way into the global market. Today there are more than 14000 cryptocurrencies and token circulation in the investment market. The total market capitalization of cryptocurrencies has increased up to $2trillion. With the changing market trends and government agencies monitoring crypto transactions, it is evident that cryptos are here to stay. Many countries are coming up with regulations to effectively monitor and track crypto investments. This way the interest of the economy and citizens are protected. Making this type of transaction legal and under the radar of monitoring, agencies will make investments secure. However, we are yet to understand this concept completely as this defers the working philosophy of cryptocurrencies.

One such crypto-token that is backed by Ethereum technology is HEX. This cryptocurrency was launched in 2019 and offers investors certificate deposit options. This is similar to the deposit scheme offered by central banks. A lump sum amount is deposited for a fixed period of time. The time varies from one month to one year or more. During this period, there is a fixed income or percentage of income that these types of deposits attract. Also, during this lock-in period, investors are not allowed to withdraw the amount. In case the investor still wishes to withdraw the same then there are few penalties attracted to it.

Understanding the working model of HEX

The benefit of investing in HEX is to investors. Unlike other cryptocurrencies in the market, data miners and validators do not benefit from this investment scheme. HEX investors are using this currency to stake their investment for a specific period of time. Depending on the period of investment, investors gain rewards either as a HEX token or interest on investment. The lock-in period may vary from 1 day to 5000+ days; a lock-in period of more than 12+ years. Every investor is provided with T-shares at the end of staking. With a larger lock-in period, there is a higher opportunity to gain T-shares.

It is also estimated that the value of the HEX token is programmed to increase by 3.70% year on year. In addition to this, long-term investors also benefit from keeping the stakes intact. The penalties collected from pre-mature withdrawals are in turn distributed to long-term investors. Hence, long-term investments gain a dual advantage on their investments.

HEX’s History

During the launch in 2019, HEX came up with an interesting strategy. If you already have Bitcoin or Ethereum investment, then you could pick HEX for free. In addition to this, HEX tokens that were not sold to any investors were then equally distributed amongst existing investors.

HEX Working Model

As compared to Bitcoin, HEX utilizes less energy. The proof of wait protocol combined with locked inflation provides investors with a greater return on investment. The developers also came up with three important mission that makes it different from Bitcoin.

Why are the Prices Rising?

HEX was able to attract a huge volume of investment in recent times. Since the launch period, HEX has seen a price increase once every six months. Over a period of time, the prices have also increased enabling investments with a larger lock-in period.

The current price of HEX increased from $0.08 to $0.5 in 2021. Market analysis also predicts that prices are expected to increase from $0.7 to $3 by the end of 2025. This means investors definitely going to gain higher returns from their investment in addition to price stakes.

However, it is worth waiting to watch how the proof of wait philosophy will work in the long run. The volume of benefits that investor gains are still worth watching.

Is it Worth Investing in HEX Crypto?

Going by current studies, investment in HEX crypto is a high-risk investment. Like all other cryptos, HEX is also prone to price volatility and market fluctuation. This is an important point that needs an investor’s complete attention. Study the market trends and price fluctuation of HEX thoroughly. Also, make your investment starting with a lower price. Once you are confident about the returns being credited to your investment, you may please go ahead with further staking. https://bitcoin-prime.cloud/ is the safe and secure exchange to buy and sell crypto.