$HEX for the Financially Illiterate

10,000x word salad | refer this post to a friend to collect a 20% salad bonus


Table of Contentsor just skip to the Final Thoughts

Is $HEX a scam?

Who is Richard James Schueler AKA Richard Heart?
Ricky, Richy, Big Rich and Mr. Panama?

Here is what he does not want you to know about his HEX token and the perpetual enrichment of its founder.

"There aren’t actually any coins, they’re just numbers in a distributed database"
"Listen, if you think that these semantics matter under the law — they don’t!" — Bill Restis streamable.com/5joeh (Archive)
Just imagine if it was that easy

HEX is an ERC20 Ethereum contract that gives you tokens for your Ethereum. The community is paying millions of dollars in $ETH to get their $HEX.

It is marketed as a Certificate of Deposit (CD) but in most scenarios what you deposit into a CD is something with stable value so the % increase of the CD is an objective increase in value. There is no certificate of deposit — all Ethereum deposited is forever gone with no refunds and you are left with HEX to find buyers for to recoup your investment.

"Imagine a bank CD where you get sand in exchange for dollars, and you can use the sand to get extra sand but you never get your dollars back?" — Stephen Palley (Lawyer) (source)

All bonuses are minted out of existing supply thus diluting the overall value of HEX over time. All verified in the source code.

The origin address is paid a copy of all bonus payments and penalties.
 — Speed claim bonus
 — Referral bonus
 — We Are All Satoshi increments
 — Critical Mass/Virality bonus

The un-stake penalty gets split into two where one half goes to Origin Address (Richard) and the other to everyone else who is staked at that time.

_stakePenaltyTotal is the function that gets sent to stakers (Source)

The origin address gets a copy of the We Are All Satoshi (WaaS) bonus daily which is about equal to the number of HEX distributed daily to the Adoption Amplifier (AA). It can then stake these coins an earn another share of the WaaS bonus that is paid on The Big Payday.

This bonus is essentially all of the unclaimed HEX that is to be paid out proportionally to all stakeholders after the initial BTC free claim, and AA (Adoption Amplification) phase are over with. Since a copy of all bonuses and penalties in HEX get paid to the Origin Address (OA), this bonus is also being paid proportionally daily to the OA, which amounts to about 520 million HEX per day.

Both the Origin and Flush addresses were hard coded into the smart contract.

xfLobbyFlush() is the function that transfers all pending Ethereum into the Flush account — an Ethereum address that has no owner or accountability. Clearly, based on substantial speculative evidence, the owner or partial owner is Richard (Heart) Schueler.

The Flush address gets all the Ethereum used to obtain HEX tokens. Whoever owns that address gets 100% of all money used to mint HEX.

You never get back your initial investment but instead just a bunch of HEX tokens.

Richard has denied having full or partial ownership of the OA/F addresses. He knows doing so would expose him legally speaking.

Richard has a point though. The minute you give the HEX contract Ethereum for HEX you no longer own that money (Ethereum).

So what about free claiming HEX? Free claiming HEX is sort of like an airdrop but Richard prefers we all use his choice of specific terminology. Surely something that offers free money is not a scam right? It is Irrelevant.

For starters, usually when something is free you question its authenticity — ever heard the expression if it is too good to be true it probably is? I only bring this up to highlight that something free does not automatically make it trustworthy. It is a silly argument I have heard many times from HEX bag holders and referral-based shills.

Free claiming is essentially acquiring free HEX tokens by providing your bitcoin address. You get free HEX and Richard Heart gets useful metrics and statistics to track HEX’s overall adoption and progress. It costs Richard nothing because he will invent these new HEX coins to give you by increasing the total supply (diluting existing supply). Free HEX token rewards are dynamic meaning that on day 1 you get more HEX than if you free claimed on the last available day permitted by the contract. Your free coins get automatically locked for 1 year and cannot be emergency un-staked (a feature that allows normal stakers to un-stake by paying the Origin Address a penalty).

Sounds good so far but the real issue with free claiming HEX is that it almost seems comical to even participate. Kieran, a former developer of HEX, shined some light on the topic in Telegram.

The price at the time Kieran made that post was lower than it was at the time of this article’s writing but Kieran’s logic is still sound. Even without the gotcha in gas prices, one still has to ask themselves why anybody would want to spend time to move $10,000 in bitcoin for a free pack of bubblegum is beyond me. 1 Million dollars in bitcoin will fetch you a free $100 in HEX but you will not have the option to sell it to claim your value until a year has passed. If I had a million dollars in Bitcoin, I am not so sure I would be wasting my time with this nonsense; especially considering Richard put caps on the amount 1 address can free claim meaning I would have to manage my money and move Bitcoins around to various wallets to maximize the bonus amount (which equates to more tx/gas costs). I find the whole thing nothing more than an ingenious marketing ploy that doubles as a HEX-market sentiment tracker for Richard.

The total supply of HEX inflates over time. Richard expects you claim tokens, stake them, buy them with real Ethereum while he gets a free whale stack that he dumps on you with. He can take his free whale stack and use it to mint himself more free HEX as 100% of the Ethereum used to do so routes to his Flush account.

Theoretically he can trade from the left hand to the right hand artificially inflating the price and daily volume; two indicators for technically based day traders. Theoretically he can be the only trader that day and recycle his own funds through the contract and back into his pocket and potentially make money doing it with zero risk.

Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company’s outstanding shares by the current market price of one share. Since the total (circulating or available) supply of HEX increases over time, the total valuation of 1 HEX token will decrease through dilution.

Dec 13th 2019 Total Supply = 1,928,525,651 HEX
Dec 25th 2019 Total Supply = 4,770,000,000 HEX
Jan 16th 2020 Total Supply = 10,706,074,539 HEX
Feb 8th 2020 Total Supply = 23,720,647,825 HEX

There should be about 150 billion hex transformed from the AA.
There will also be about 60 billion hex created from referral bonuses.
There will also be a big pay day for all stakers at the end of the 351 days

The amount of Hex will radically increase right at the end of that period (351 days), maybe 2 times the entire amount, depending on staking length.

For those that do not understand the concept of inflation or dilution, please allow me to simplify it to its basic fundamentals.

In other words, the more coins minted every day, the less valuable your coins become. It is simple math.

Richard has acknowledged that the Origin Address has the power to manipulate the value of HEX (based on existing supply and how much of that supply it owns.

Richard has either read a few law books or drank a few beers with a lawyer at the bar (puns intended).

When reading over HEX and its materials you can see messaging such as

"HEX is designed to increase in value faster than anything else in history"
is not the same as
"HEX will increase in value faster than anything else in history."

Messaging such as,
"it’s designed to go higher, faster, and retain its value"is not the same as
"HEX promises you higher, faster returns."

And he basis his entire legal stance on the legs of the Howey test.

Carefully worded for legal purposes (hex.win/disclaimer.html)

Richard Heart says in many videos that if information about the Origin and Flush address is revealed it will deem it a ‘security token’. Richard Heart argues that if HEX is deemed a ‘security token’ then it will be near impossible for him to get it listed on popular exchanges. This in turn is an incentive for holders of HEX not to question who the owner of the Origin/Flush addresses is out of fear that the coin may never get listed or see proper liquidity. He never discloses who gets the ETH that is transferred to the HEX smart contract. Or how that ETH will get utilized. HEX holders dare not question their ‘Thought Leader’ and his motives. If they do, they might get blocked on Twitter and banned from Telegram groups by Richard.

Meanwhile, deep in the corners of telegram, HEX ‘Contributor’ Dan Emmons responds to questions surrounding the funds in the Origin/Flush addresses.

Dan Emmons, HEX "volunteer"

There is no Board of Directors. There is however a self proclaimed Thought Leader who has designed the first ever coin that gives 100% of the proceeds to the owner. All those scams Richard called out has only served as homework to reverse engineer the blueprints for a ‘get Richard Schueler rich quick’ scheme.

Richard Heart Schueler: Name a single human being I ever scammed in my entire life?
Peter McCormack: Every single person who sent $eth to HEX
A lot of people say you’re a scammer, a lot of people say I’m a scammer but you actually made money streamable.com/t316b (Archive)
You are probably the only self-help book writer who’s created a scam streamable.com/i8c5p (Archive)

Richard’s book is called SciVive. You can make your own judgement but all I see is a bunch of useless facts that look to be written by Dwight Schrute himself.

Here is a snippet from his book.

Even better, here is a snippet of where he admits to selling fake gold and stolen car stereos. If you watch Richard’s videos you may recall him bragging about selling used car stereos to buy dental implants which led to his million dollar success. Well let me be the one to break it to you; he got rich playing dirty.

Every "thought leader" needs a self-help book and the self awarded title of Philanthropist or people might suspect you are up to no good.

Read my book then go ye into all the world and preach HEX to every creature and be ye rewardeth by 20%
"HEX is designed to increase in value faster than anything else in history"

The very first thing off the HEX website is a statement designed to entice an expectation of profit.

Also directly from the HEX.win website is a YouTube video titled "HEX is the Opportunity of a Lifetime. Designed to do over 10,000x returns in under 2.5 years."

Phrases such as these are carefully designed to entice the financially illiterate. The SEC (Securities and Exchange Commission) designed an educational website as a tool to alert investors to possible fraud involving digital assets like ICOs. The fake ‘red flags’ that the SEC put on their parody website howeycoins looks very similar to Richard’s HEX.WIN .

A Ponzi scheme is an investment scam that involves the payment of purported returns to existing investors from funds contributed by new investors.

Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk.

In the case of HEX, it is designed to increase in Richard Schueler’s value faster than anything else in history.

Is HEX a ponzi scheme?

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for early investors by acquiring new investors.

Is HEX a pyramid scheme?

A pyramid scheme is an illegal investment scam based on a hierarchical setup of network marketing. The most famous kind of pyramid scheme is, perhaps, the Ponzi scheme.

Or perhaps, like Richard Heart Schueler so carefully explains; HEX is more like a cancer than anything else.

"You have to be like a bacteria and compete for the same resources that those things feed on and then starve them of those resources" — Richard Schueler

Speaking of Ponzis …

One of the most iconic memes; Carlos Matos of Bitconnect. The cryptocurrency version of Bernard Madoff. Richard is obviously a big fan.

How do you get investors to buy a shitcoin with no value? Simple.. have popular social media influencers shill it for a financial incentive. Then use that buzz to convince potential investors that the project is designed to pump based on a referral structure.

Richard Heart Schueler on Telegram
Earn 20% on all claims that click your HEX referral link.

The bonus and referral schemes seem to have been articulated to obfuscate the premise that the entire platform has been cunningly designed to make one man very wealthy indeed. The 20% referral structure is also an incentive for influencers to convince investors into buying HEX because they get a free gift of 20% of that very purchase. If you spend $1,000 to get HEX through an affiliate link then that person who owns the link gets $200. It is such a great deal (for snake-oil salesmen alike) that most people who shill HEX never actually bought it themselves. This is like selling placebos in place of cancer treating drugs to cancer patients for a 20% bonus. Maybe you need to have zero empathy for others to sell them something you wouldn’t buy yourself.

Trevon James, a hired Bitconnect shill, also now promotes HEX

Not a bad income for reselling snake oil

The SEC subpoenaed him to face charges while Bitconnect faces a class action lawsuit.

Trevon, among many others, started focusing their video efforts around marketing HEX for Richard.

Trevon owns EtherHex.win, an affiliate link
We can inspect the redirect using services found at redirect-checker.org

Status: 301 Moved Permanently
Location: https://hex.win/?r=0x24B23bB643082026227e945C7833B81426057b10

Trevon makes 20% off what ever he convinces you to buy off of Richard Heart Schueler. There is growing speculation that Richard paid Trevon additional monies from the HEX contract directly (in $Eth) to promote Richard’s HEX project. This could also be Richard preparing to artificially inflate the volume and price with his own money since it is free to do so and there many people tuning into Trevon’s channel may speculate on such activity as real organic growth.

Why would Trevon continue to do what landed in him court prior HEX is beyond me.

But what about an SEC Cease and Desist order against Richard Schueler? Not like it would matter after collecting millions to of investor funds to your own personal wallet.

"Great! Then I’ll cease and desist" — Richard Schueler

YouTube chat from Richard’s 12/25/2019 live stream

But what about prison? Surely Richard fears prison?

"Nobody goes to jail in crypto" — Richard Schueler

What about Ross Ulbricht and the many ICO scam founders? streamable.com/s3e5p (Archive)

What about angry investors? Surely they will (legally) go after Richard? That depends on when investors become angry. Most will be asleep during the staking phase. Imagine staking 5 years and then telling your family those years that you invested their future into Richard Schueler’s pockets. Even worse, imagine trying to convince somebody after the fact they made a mistake; a nearly impossible task due to sunk cost fallacy.

Given RichyRichCrypto’s choice of words used, it is highly probable that this is a marketing stunt endorsed by Richard Schueler. twitter.com/RichyRichCrypto/status/1209878970826711041 (Archive)

Now imagine not just 5 years, but 15 years.
15 years is a lifetime in crypto!

HEX promoting dollar-cost-averaging (DCA) for a period of 15 years or more

On the assumption that the above tweet is real and RichyRichCrypto waits 5 years for his HEX to mature and end stake. Where will Richard Schueler be then? Will he continue to live stream for the next 5 years? What will happen to price if nobody is is on podcasts talking about fake Satoshi for 7 hours a day? What about 15 years? Where will Richard be then?

15 years? Bitcoin came into existence in 2009 — that’s only 11 years. You not only have to bank on HEX, but Ethereum and also cryptocurrency as a whole because its not just about some candlesticks and moving averages when you look at a 15 year road map.

Does Richard plan to market and promote HEX to keep the buzz flowing and the price up for the next 15 years? Or does he just walk away and hope everybody else shills it for their 20% cut? What will the price be when stakes end be it a year, 5 years or 15 years? If there is no demand there are no buyers for future sellers. This project relies on the ability of others to market it. When the buzz wears off then so will investor speculation and price support.

The good news (for rekt HEX plebs) is that Richard might have hired somebody to wear his shoes for the years to come.

Paul Hughes, Analyst for HEX and Founder of StakeHEX, LLC

The bad news (for rekt HEX plebs) is that at the time of this writing Paul Hughes decided to quit promoting HEX through StakeHEX due to ‘possible price manipulation’.

The business address listed for StakeHEX LLC is coincidentally the same one UPS uses (Doh!)

So it would seem Paul (unlike other HEX team members) knew enough to hire a lawyer to open a business and register a domain to a UPS PO Box postal address. That’s a neat trick to remain anonymous.

On the StakeHEX website we see Paul chose to remain unaffiliated to the HEX project (plausible deniability?)

Note that Richard Heart is not Richard Schueler’s real name

Here we see Paul has setup StakeHEX as an unofficial affiliate partner for HEX. Yet we know it is official since Richard listed Paul as Richard’s HEX Analyst.

The compensation is 20% of whatever you buy using their referral link to hex.win. That is 20% before whatever else Richard Schueler and Paul Hughes have agreed upon behind closed doors.

Hurry! Hurry! Use our affiliate links to give Richard all your Ethereum for tokens you lock in a vault for 15 years.

When you look under the hood it starts to look interesting. Take point #2 below as it suggests possible wash trading through Origin and Flush addresses. Why write all that out? Was it necessary to fine print these sort of potentials around vaporware and wash trading?

Richard Heart does not want to give HEX investors any ‘expectations’ in fear of breaching SEC compliance (as Richard puts it). However this does not stop the average Joe from providing (bad) financial advice. These average Joes can be hired off freelance websites such as Fiverr. If you promise these Joes HEX instead of fiat or legitimate cryptocurrencies then it is in a sense free marketing. Even so, many will do it for free (for just their 20% referral bonus).

Amiris Brown for example. She goes by node_nonce on Telegram. You can find her popping up in YouTube live streams promoting HEX. She has been accused by many as being an internet panhandler. She claims to be homeless and unable to work. I find it commendable for somebody who is without home and job to find a way to get online and blog to the world about how she minted her own hex.

Amiris talking about how much crypto she holds streamable.com/t90j1 (Archive)

But I’m sure she and others like her mean well when they tell you HEX is the best thing since sliced bread.

She also shows up on forums claiming to be part of an international team working on an Ethereum app project which is quite interesting post for a homeless crypto hodler.

This is because she links to StakeHEX LLC.

Also a participant of StakeHEX is Kyle, who is also an Analyst for HEX.


His resume is verifiable but what I find interesting is the lack of HEX anywhere on his public profile. He is busy programming DAPPS for HEX to onboard new users and even wrote a HEX guide for non-technical people but for some reason is too shy to reveal to the public he is associated to HEX. Even his twitter account @rapidprototripe is scrubbed of any keywords HEX or RICHARDHEARTWIN.

Kyle does show up in the depths of Telegram (where chat history can be deleted).

He quit his job at Netifi in September of 2019. Based on his Linkedin he is unemployed. Based on HEX.WIN website — he is employed.

This entire project relies heavily on the premise that future investors exist. With future investors comes 20% of the HEX they mint for those that help market HEX for future investors. If new investors dry up then those that market it will find new referral-based scam coins to promote to make better use of their time. This is essentially a house of cards based on a single-layer marketing scheme as its foundation. Like an MLM but with only 1 tier in the pyramid.

All of this marketing is designed to pump HEX. HEX is designed to pump Richard Schueler’s pockets. So ideally Richard, if motivated by greed, will want the maximum adoption in the quickest time possible.

This brings us to FOMO (Fear Of Missing Out). Because with the right wording you can make subliminal messaging you can have readers reading into hidden suggestions. FOMO is a pervasive apprehension that others might be having rewarding experiences from which one is absent. This social anxiety is characterized by a desire to stay continually connected with what others are doing. Take this tweet for example and note the carefully chosen wording a day before launch (Dec 2nd 2019). If I didn’t know any better I might think Richard wanted everybody to buy at launch time.

And after launch (Dec 2nd 2019)?

HEXbad chat on Telegram (now scrubbed of all history)
First scam, then do anti-aging promotion stuff streamable.com/1ffhx (Archive)

Why does Richard want to be the next Tony Robbins or Aubrey de Grey? The next popstar in Sens.org or anti-aging in general?

"You can get rich doing it" — Richard Schueler

Oh please save us Richard! You are our hero!

Before it was named HEX it was BitcoinHEX and CFDTOKEN before that. CFD was to be a new coin where Proof-of-Work was to be a scientific approach to solving fluid dynamic problems. Richard, who was leading the project which was eventually deemed too difficult and too much time required to see it through. This led Richard to switch to an ERC20 Ethereum-based smart contract. That too proved too difficult so a bunch of plans were scrapped to create BitcoinHEX. That upset a lot of people in the crypto space being it was an Ethereum based token with the Bitcoin name attached. So it got renamed to HEX; a token with no real technical innovations.

More about some of the awesome team members that makes up HEX. Do keep in mind that the word going around is that these bios were hand written by Richard himself.

David Brown (CEO based out of Helsinki, Finland) vanishes from the project without even a tweet from Richard Heart Schueler.

Kieran Mesquita (former CTO and lead developer)

Both David and Kieran no longer work for the project. New team members were sourced by Richard to make the current roster for HEX token as we know it today.

Cody Lamson (Developer) seems to have left the project in September 2018.

Brent Morrissey (Marketing Executive)

Brent shows up as a former lead singer for a band out of Helsinki, Finland and then later as a T-Shirt salesman. Who do you think made all those HEX t-shirts Richard Heart Schueler wears on his crypto podcasts?

Out of all the people working for HEX, Brent appears to be the only one Richard pays. Yet nobody knows what he does and being a Marketing Executive is kind of strange when you factor in Richard’s extensive history in brand marketing.

David Wilson (Evangelist). Davis shills his HEX affiliate link on YouTube. Other than that, nobody knows what he does. And what exactly is an evangelist?

Cryptocurrency Evangelist

Louis. D (Director of Operations) has no other information online to support the claim he even exists.