Home Trends ? Richard Heart Will Dump All The HEX and Send it to $0

? Richard Heart Will Dump All The HEX and Send it to $0

by smart

hey everybody in this video we’re going to talk about the hex origin address because it’s been explained a whole bunch of times by various members of the community and richard hart himself but i feel like a lot of people still don’t get it and maybe you’re hung up about this if you’re on the fence about hex or maybe this really really bothers you for whatever reason and i think it’s a common misconception that not a lot of people even want to take the time to dig into and keep an open mind about so i’m going to try to explain it from a different point of view in a short bite-sized video so you don’t have to go fishing through a two or three hour long richard hart live stream or anything like that and just get the perspective of why the origin address is not actually a bad thing at all for the hex project and why it was specifically programmed into the hex smart contract itself so that it could be a benefit to the actual product so i’ll try to reword things in a way that might be more digestible and again if you don’t like hearing it from richard maybe i’ll be able to change your mind and if not you know there’s probably going to be a good portion of you that are still going to finish this video and still hate hex because you’re just mad that somebody owns more hacks than you and that’s all it really is at the end of the day one of the critical things about hex is that there’s no admin keys like a lot of d5 products out there you know they can actually hack in and change the rules of the smart contract so smart contracts were designed and supposed to be immutable code that lives on a blockchain and immutable means uneditable but unfortunately in cryptocurrency there’s been a precedent set that the developers of whatever product or project they’re building can just add a back door change up the rules freeze people’s accounts change the code change the laws itself and that’s not what crypto is supposed to be about so the point of cryptocurrency was supposed to be able to get rid of middlemen because people in the middle can become corrupt and can change the rules to benefit them we’ve seen this with the federal reserve right they get to change the interest rates basically on a whim and they get to print as much inflation as they want and basically it’s creating a crazy chaotic hyperinflationary environment across the whole world and a lot of uncertainty about what’s going to happen crypto’s supposed to fix all that and so one thing that you should know about hacks if you don’t know this already is that it’s actually immutable and locked code so we’ll get into the origin address in a minute stick around till the end because we’re going to explain all the points all the counterpoints and all the misconceptions and myths about just how people think wrong about this whole thing let’s get right into it so if you don’t know by now one of the most common anti-hex points is that it was programmed in with what’s called the origin address that received about 50 of the coins upon the creation of hex and it speculated that you know as time went on the address actually acquired more coins and people speculate and people have actually audited it and found that it probably owns about 80 of the coins at this moment in time which will change as it deletes itself over time i’ll get into that at the end of the video so stick around but a lot of people seem to have a problem with this and not really know why they have a problem i hear some common things over and over and over again about oh richard hart’s going to dump on your head richard hart is the founder by the way you know as if a founder would want to self-destruct their own product and just run away with everyone’s money someone that’s already been rich and retired for years mind you that’s actually trying to help people but people don’t want to look into that right people want to have these misconceptions because i think a lot of times we project what we would do on to other people so people might think oh well if i had all that money i would just rug pull dump and then run away but it’s hard for people to realize that this is a product not only designed to basically give people a new chance at uh truly financial freedom and real wealth but also it’s a long-term financial product and it’s designed to last multiple years meaning multiple bull and bear cycles it’s not just a quick pump and dump it’s not a ponzi or pyramid people use these words all wrong too you know people say ponzi ponzi ponzi and scam scam scam and it’s really really tiring to hear these words especially when people spew them without really looking up the dictionary definition so a ponzi scheme is when you give somebody money and then that person promises you a crazy high rate of return and the way that they pay that return is by going to a new investor getting them to invest promising them a similar return and then using the new investors money to pay the old investor so it’s a classic scheme it involves people with actual promises middlemen in real life making promises and taking money from new people and giving it to old people so i want to be very clear about how hex works and hex you make interest for staking and that interest simply comes from the inflation of the coin that’s programmed into the smart contract at a constant and unchangeable rate of 3.69 per year right so every year the coin inflates 3.69 percent and that inflation is divvied up proportionally among everybody that’s staking in the system proportional to how much you have stakes so if i’m a bigger staker i’ll get more that interest smaller i’ll get a little smaller amount but it’s a rule that can’t be changed but i’m diverging away from the topic a little bit we’re here to talk about the origin address specifically we can talk about the other counterpoints in other videos so let’s talk about some misconceptions one thing people say is well why would i want to get involved in something where any one person can just dump the price to zero overnight right and i think a lot of people don’t realize that that argument holds true for literally pretty much any asset out there right this includes stocks real estate and especially true for crypto right now i want to point out that there’s always more supply of a cryptocurrency or of anything then there is actually liquid available on the market there’s always more houses and in real estate out there than there is actually real estate for sale there’s always more stocks out there than there are actually stocks liquid on various markets and this is especially true for crypto as well there’s far more bitcoin supply out there than there is that’s actually liquid in fact much of bitcoin supply is considered dormant because it hasn’t moved for years and this is a good thing right people holding and never selling helps the price go up because it creates scarcity and it means that the amount that is available in liquid is smaller so the demand that people have to compete for for that smaller supply pushes the price higher okay now like i said this is true in literally any market there are individuals that have the power to dump tesla right elon musk owns probably 30 percent of the company do you think there’s 30 percent of all stock even liquid on the market the answer is no and so if elon musk just went totally awol and decide to decided to destroy his own company and sell all his stock sure he could he could crash the price probably to almost zero you know does that worry you about getting into tesla stock and if so you know don’t get into it i’m not trying to sell you on hex either yeah this is possible to do in hex but for the same reason that elon musk and bezos don’t want to self-destruct their own products it’s the same reason that everybody just kind of keeps the game going there are real estate companies in my city in your city that probably have the ability to liquidate all of their real estate at any one time hell even if maybe 10 of the neighbors in your neighborhood tried selling their houses all the same time the property values around you would crash very very low i mean we live in an imagined reality that’s sometimes more fragile than people think but the way that it all works is that people aren’t insane psychopaths for the most part right and so people don’t choose to all sell at the same time especially not the big whales and the big holders so the big holders of bitcoin right chamath pala hapatia cameron winklevoss tyler winklevoss grayscale investments these people all own more than one percent of all bitcoin who else jack dorsey there’s plenty of people out there that could crash the bitcoin price to zero if they went ahead and took their big bag of 100 000 bitcoin or however much they have and just dumped it in a big market sell why don’t they do this again it’s just how incentives are aligned and whales are more incentivized than everyone to keep the value of the thing that they own hi i mean if people are incentivized by greed this is actually a good thing and you start to realize that okay people aren’t just totally chaotic psychopaths that want to get a lot of something and then instantly dump it sending the price to zero so if the argument’s starting to seem a little silly to you by now good and if not we’re gonna keep going again the richest people in the world are also the least incentivized to sell right when you have a certain point of money it doesn’t change the quality of life that you have anymore instead of the uber rich people of the world you know it’s hard to realize as someone that might not be in the capital class but you know as someone in the middle class we think that you know you have to work hard to make money the harder you work the more you make that’s not actually true the people in the real capital class they buy assets that produce income for them and then they can do all kinds of tricks like take out loans on their assets if they really want to buy anything else and it turns out a lot of multi-millionaires and billionaires you know they’re they don’t need anything else they have their five mansions and they have their you know rocket ships to space and there’s only so much money you can spend on yourself so a lot of times the big whales and companies or ceos or you know founders of cryptocurrencies they want to keep the money to either to use as leverage for future endeavors right they want to just hold the value that they have so that the price continues to go up and on paper you know they do have all this money and that can open a lot more opportunities for them to do other ventures in the future like for example the founder of hex wants to donate a lot and actually recently put together uh 25 million dollars in donations to the suns foundation which is a longevity fund that could actually save all of our lives so you’ll find that when people have money for the most part if they’re not good they’re at least neutral i don’t know a lot of super rich evil people out there you know granted there are some people that may not realize that you know they’re acting unethical we can go into that at other times but most of the people that want to get rich want the power to influence the world and the majority of time it’s actually for what they think is for the better okay so this this hatred of the rich often comes from jealousy and not understanding that money and power is actually a tool to progress the world forward and again a lot of people look at the circulating supply and they they think that they confuse that with liquidity so like i said earlier right for example there’s 500 or 600 billion total hex coins circulating quote unquote circulating but that doesn’t mean that they’re liquid and that actually means that the word circulating is probably a little bit of a misnomer right but what else are we going to call it right basically it’s just coins that are not locked up that are free to move at any point but often don’t so i think a big part of circulating supply of any coin should actually be better named a dormant supply this is especially true for bitcoin too satoshi nakamoto the founder of bitcoin himself owns about a million tokens and they haven’t moved since the very very early days like year one of bitcoin’s entire existence so the longer they sit there without moving doesn’t it seem more reasonable to assume that well maybe they never will move maybe we can consider them dormant right but if you’re worried about you know the founder of hex dumping all the coins overnight maybe you should also be worried and paranoid about satoshi nakamoto coming back and you know what if he gave his private keys to his children and they decided to just dump the coins overnight you know these fears start to seem kind of silly and hypocritical when you start to apply them to any other financial instrument and again and we’ll do a good example of this later so you can see what i really mean okay but like i mentioned to sum it all up there are whales in any asset that could destroy the price if they want to they just simply don’t need to and don’t want to finally i think one of the reasons that people have a weird feeling about hacks is that it’s so different from a lot of other things in the market and that was because it was intentionally designed to follow securities laws and for those of you that don’t know what qualifies as security it’s actually kind of an old law judged by what’s called the howie test and the howie test has four legs right so there are four statements that if your product whatever stock financial vehicle abides by these four legs of the howie tests it can be deemed as security by the us sec in the united states and that would put it at risk of not being able to be listed on various exchanges so hex was designed in such a way that it follows the security laws as best as it can so the highway test says that you must have an investment of money into a common pool with the expectation of profit from the work of others an investment of money into a common pool with the expectation of profit from the work of others and now the expectation of profit from the work of others part was specifically taken out of hex and the founder richard hart will repeatedly say like a broken record that you should expect nothing in return from the origin address the origin address will never do anything you should never expect any profit from the work of the origin address and that’s why hex was launched fully complete right hex is a completed product unlike 99 of any other cryptocurrency out there which is always which are always being made updated and always being made better hex is actually final and locked and finished which is why it’s such a curveball and why a lot of people have a hard time understanding it so in cryptocurrency we have this habit that’s been drilled into our bodies and our minds where we expect promises from the work of others now i don’t want to call out coins but you know coins like cardano i if you hold cardano it’s great i love it it’s fine but the whole thing is built on promises of work being done in the future i mean i can name a million other coins but i don’t want to piss people off by you know talking negatively about coins but a lot of these coins out there you know people are conditioned to go to the website and look for a pie chart of some kind of allocation of the coins and they want to see oh 15 is going to marketing five percent is going to the founders 25 is going to vcs as if you know having the certainty of this pie chart and knowing how the coins are allocated or basically how the coins are promised to be used that somehow makes people feel better but guys i’ve been in crypto since 2015 and i’ve seen time and time again it doesn’t matter what somebody puts on a pie chart on a website people don’t always come through on their promises so i prefer to invest in hex because it’s actually something that’s completed and i don’t have to worry about richard hart doing anything in the future right you know he could get hit by a bus and hex would totally run completely smoothly and fine because it’s finished locked immutable audited three times 100 uptime never been hacked all this great stuff right but i think people are so conditioned to their promises that when they see a founder not offering any promises a future work a lot of people get confused and it’s understandable if you’re new to crypto right so i’m not trying to to bash you especially if this is your first year or two in the crypto i mean there’s people promising all these great things and guys i saw it in 2017 2016 2015 the amount of these times that these promises actually work out is very very few and far between but in hex we don’t promise any profit from the work of others and hex you are the network so if you want something good to happen if you want to do marketing you do it yourself kind of like i’m doing right now right and with you being the network it’s distributed and the responsibility is distributed and it takes away from expectation of profit from a central entity you know and hex there’s no company there’s no ceo there’s no room full of people it’s just a bunch of people at their computers like you and me so i think that’s pretty cool and i think it’s a lot of fun to be a part of now just in case you were still a little irked or unnerved about the origin address owning approximately 80 of the 80 of the hex tokens well the origin address does that now right but we could look at the staking class owning approximately you know 20 more right and one interesting thing is that somebody’s actually audited the origin address and i’ll post the link in the description below the origin address has only staked a few times and has really left most of their hex liquid and by doing that like i mentioned earlier inflation in hex is paid to the stakers only which means the origin address by not staking is actually deluding itself and allowing the interest to be paid primarily to the actual staker class of people so imagine this concentric circle is year one so the origin address yeah it owns the majority of the coins but the stakers are able to buy and stake from the liquidity on the market and every year they’re getting all the inflation right and the origin address is not really getting much more inflation so the middle circle is the oa and the outer concentric circle is like retail you know all the stakers and every year after that you know the stakers get more and more of the inflation and the origin address keeps diluting itself so now look as a percentage of the outer circle as opposed to the inner circle it now seems that the origin address only owns less of a percentage right and this is a visual example but you know let’s say after year two the oa instead of owning eighty percent only owned seventy percent and maybe after year three they own about sixty five percent maybe after year four about sixty percent so on these multi-year time frames you could see that if the oa acts in the way that it’s been acting right by giving people an even chance to all become stakers and part of the staker class it’s actually deleting itself and will eventually hold a lower percentage of the coins so that’s just a visual just to project out into the future and show you how the oa will actually become less dominant over time and how in the early days it needs to have a lot of these coins in order to prevent a lot of price dumping right if you give a little bit of equal amount of coins to everybody we’ve seen it before guys there’s a lot of examples i can give you that i actually show in previous videos where coins were given for free and airdropped and quote unquote a fair distribution but when a fair distribution happens guys there’s what’s called tragedy of the commons nobody is incentivized to see the product do well because nobody really worked for the coins they were all just air dropped an even amount of coins so if you give a hundred people one percent of the supply chances are they’re all the the first thing they’re going to do they’re going to go to the market and they’re going to see hey how much can i sell these for how much can i dump these for in the market right because i didn’t do anything for these coins i don’t care about them i want to see how much money i can get i’m greedy and i want my money now so in the beginning of projects and projects are very new you want somebody with a high incentive to see the product do well right in a project’s infancy you want a founder to keep a close eye on the product and over time as it becomes more distributed the founder can quote unquote exit to the community which this whole exit to the community idea over time is actually an idea touted by vitalik buterin founder of ethereum i can post the link to that tweet below as well but guys just to show some of the hypocrisy of cryptocurrency here’s a list of the erc20 tokens the top tokens and all of uh etherscan.io we’ve got two stablecoins bnb hex is really number two besides stablecoins it’s pretty cool and then let’s take the other top ones that aren’t stable coins let’s take unit swap and chain link now i don’t want to talk crap about chain link or unit swap right these are fine if you hold them that’s great i’m not promoting them but if you hold them i’ve got nothing against them and i think they’re both trying to do interesting things sure now let’s dig in right let’s drill into unislop for example right and then we can go to the holders tab right here and we can see some of the top holders in unit swap now look a lot of this is locked up in a treasury thirteen percent twelve percent eight percent four percent three percent that’s almost fifty percent of the coin right there in the top ten holders alone right i mean if you’re mad about centralization there’s your centralization right but i really have to distinguish at this point economic centralization is different than technical centralization right so does the uni token have an admin key that would be technical centralization that means one developer can change up all the rules now it’s different than one person one investor having a lot of coins to buy or sell so again i’ve said this in previous videos but economic centralization actually works great in the real world that’s how things just function technical centralization is what we’re trying to get away from in cryptocurrency we don’t want people to hold the keys to the kingdom and be able to change the rules rug pull you whatever it may be so the first five addresses here are all smart contracts and looks like there’s some kind of vesting contracts so let’s consider these irrelevant for now just for the sake of the argument let’s look at address number six right or number seven this guy it’s a normal address he owns 21 million 532 000 tokens now let’s hop on over to app.unitswab.org and see what happens if that guy just decided to go awol and dumped 21 million 536 000 i think that was the number 21 million tokens on the open market let’s see what happens if this guy tries to dump all those tokens on the open market oh look what do you know there’s not enough liquidity in the system to even be able to handle that dump so you would push the price down 99 99.9 and you get about 400 000 if this one individual tried to sell all of his money at the same time right and that’s one guy right so going back here look at all these other individuals that have 12 million 13 million 15 million 50 million any one of these people it could be anybody out there they could all decide to go totally awol one day do a massive sell order and totally nuke the price of the token why don’t they because people aren’t stupid and especially whales okay whales have a higher time preference than you a higher time preference means they’re not as scarcity thinking they want to hold for long periods of time and they want to see the things that they’re invested in do well and they’re not stupid guys nobody just dumps and exits at the same time but the argument that this could happen in hex i’m only doing this right now to show you that it’s actually valid for pretty much every other cryptocurrency under the sun let’s take chain link for example again not trying to talk badly about chain link chain link is fine i have no problem with it at all but for the sake of the argument let’s take a couple of these guys you know these top three are smart contracts up this one owns 35 percent of it 35 5 5 3 3 the top five addresses here own about 50 of the token but are people crying about that for some reason not as much as they are about hex right but let’s take a normal guy somebody with a normal address that’s not an exchange or anything and let’s take this guy with 10 million 145 000 chain link what happens if i try to sell 10 million 145 000 chain link on the open market at the same time on uniswap.org app.unitswap.org oh look the price goes down 100 okay because again there’s not enough liquidity in the market to handle a massive market sell order from one of the many whales out there again many whales right so you could even make the argument that in hex because there’s primarily one big whale it’s actually lower risk you know the risk of that one whale selling might even be lower you could say than the risk of any one of these guys selling this guy or this guy or this guy or this guy or this guy or this guy you know it could happen right but it doesn’t and i’m not worried about it happening because that’s how the world works okay whales are incentivized in every system to hold the price up because they have a longer time preference so hopefully this all made sense to you hopefully you if you were on the fence before maybe you feel a little better about this argument and if you still have cons well sorry you feel that way but you might have a hard time in crypto in general thanks and i’ll see you on the next one you


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? Richard Heart Will Dump All The HEX and Send it to $0
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