Opinions
Crypto Talk with Terence
HEX
CRYPTO:HEX
COMMENT
Nov 22, 2021
$0.183
Stock price when the opinion was issued
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THE FIRST BLOCKCHAIN CERTIFICATE OF DEPOSIT
In traditional finance, certificates of deposits are products commonly offered by banks, brokers, and other financial institutions.
A CD, allows you to deposit your money in exchange for annual interest payments. The advantage is that these products are non-volatile and guarantee a return on investment. The downside is that the money remains locked in for the duration of the deposit. With penalties, if you withdraw your funds before maturity.
Richard Heart, an American billionaire, took this idea, and applied it to DeFi, in order to create the very first Certificate of Deposit (smart contract) on blockchain: HEX. The principle of HEX is simple, just like in traditional finance, once purchased, the crypto-currency can be locked (stake) between 1 and 5555 days. The difference with traditional finance is that there is no centralized organization to manage the funds, and that the interest earned can go (according to its creator) up to 40% per year.
With one of the strongest (if not the strongest) communities in the crypto space, HEX has literally exploded since its inception, gaining over 1,000,000%, peaking at $0.5, placing it for a time in 3rd place on the market cap podium, behind Bitcoin and Ethereum . With such monstrous gains, it's not surprising that many whales are taking profits, dropping HEX to $0.20 (the crypto has dropped many times before, sometimes by over 80%). Originally available on Ethereum, HEX can now be swapped on Polygon, and soon Pulsechain.
Even if Richard Heart disturbs people with his outspoken and eccentric ways, no one can deny that the billionaire has already left his mark on the world of DeFi.