Have the SEC chosen wisely this time around as I believe they have.
Hex is finally going to have it's time in court to fight it's case after being accused of being a security. There are a couple that really stand out and this is one of them which I called a Ponzi scheme about 12 months ago after digging a little deeper into the tokenomics. Seriously would the SEC take on another case they are going to lose after being slapped a few times already within the last month?
I have to admit when the SEC published their list I expected to see HEX and a few others and not the list we saw. This obviously didn't serve the purpose at the time as it was more about FUD and delays and not whether they were securities or not.
I think it will be good news for crypto and it's investors if the SEC make everyone fully understand what HEX is about as I must maybe do another post on them and revise what I found last time as it was actually quite scary. What I can recall is HEX has various staking periods and these are rather long with 15 years as the maximum length.
HEX offers 3.69% as an APR for those that choose to stake and only 10% or around that figure have done so which has pushed the APR up to around 40% due to many not choosing that route. I know the numbers didn't add up and it did come across as a Ponzi Scheme type investment and if it is not legal it should be stopped sooner than later. The last thing crypto needs is more negativity but this whatever happens should be a positive as cleaning up crypto should be everyone's priority as we do not want to see investors losing money due to criminal projects as we have to move past that phase.
HES even on it's site has this is not a scam emblazoned for all to see instead of actually highlighting why it isn't. If one Googles HEX there are more scam articles than about the actual investment which should set the alarm bells ringing as this is obviously high risk. We know the one downside of a crypto investor is the lack of research they do which is down to possibly ignorance or not wanting to know due to the high APR on offer. Remember the calls from many saying LUNA was not quite right and people should be careful, but how many fell for it.
What makes no sense is the SEC taking on battles they cannot win yet there are the obvious ones lying around. The SEC if used correctly could be a plus for crypto and it's investors as everyone wants to know their investment is safe with regulators looking out for their well being. This unfortunately has not been the case and we all know why and the hope is one day another organization takes over the regulation doing it correctly without hidden agendas.