The first stage of PulseX’s “sacrifice” ended on January 10th. This brought total investment to the project up to $1 billion, making it one the largest round of funding (albeit unofficially) in crypto history.
This is just four months after Pulsechain’s half-billion dollar sacrifice. A future Ethereum fork will be used to determine if PulseX will be the main DEX.
Total USD lost so far (source PulseX).
PulseX’s website contains a disclaimer that states, “By giving your crypto away you don’t buy PLSX.” You can give away your crypto, or sacrifice it to make a political statement.
Detractors and supporters may either consider this a loophole to avoid being called a security by SEC or evidence that it is the next Bitconnect.
How did Richard Heart, the founder of controversial cryptocurrency Hex, lead one of the most successful crowdfunding campaigns in crypto history, even though the majority of the funds lost were not de facto investments with the expectation that they would make a profit?
Why is the Hex community so closed off to discussion?
This article will discuss what Pulsechain or PulseX is capable of doing. You will also find reasons why some people believe this project is a fraud.
What problem does Pulsechain solve?
Although hundreds of DApps have been launched on Ethereum, the network’s popularity has made its use expensive and slow. Gas fees, which are the cost to validate transactions, can sometimes reach hundreds of dollars in 2021.
Developers realized the potential of Layer 1 chains, such as Solana and Binance Smart Chain, that host their own DApps. These chains may not be compatible with Ethereum, and will require bridging solutions in order to work together. Polygon is compatible with Ethereum, as are others.
Users will see the greatest benefit to using an EVM-compatible chain: you can either swap ERC-20 tokens on that DEX or purchase a project token from your blockchain on an Ethereum DEX such as Uniswap.
Developers can theoretically create Layer 1 chains by copying the entire code of Ethereum, creating radically new protocols, or making some improvements, as with BSC.
A “fork” in crypto language means an improved version of a blockchain, where developers make changes to its rules and protocol. Upgrades to Ethereum, e.g. They are also known as forks when Ethereum makes upgrades, e.g.
Richard Heart, founder of Pulsechain, said that it will be an Ethereum fork. It is unknown how much the changes will be. The code has not been made public. The main claims are:
4x throughputProof for StakeDeflationary Mechanism
All major DApps of Ethereum will be also forked. The goal is to replicate Ethereum and create an ecosystem that works from the beginning.
What is PulseX?
Pulsechain will copy the Ethereum ecosystem to Pulsechain. PulseX will then be the fork at Uniswap.
It is the main DEX in the Pulsechain ecosystem. PancakeSwap, which is also a fork in Uniswap, achieved an analogous function on Binance smart chain.
SushiSwap’s DEXs, Uniswap and Uniswap each have their own governance tokens (SUSHI and UNI), which grant holders voting rights. PLSX will become PulseX’s token. People who make a sacrifice get a certain number of points based on their contribution. These points will allow you to airdrop a certain amount of PLSX into your wallet once the exchange launches.
PLS, Pulsechain’s native cryptocurrency, will be delivered to those who have made a sacrifice for the project.
PLSXX and PLSX will be priced at $0, with subsequent price targets unknown.
Many believe PulseX will launch towards the end of this year, while PulseX will launch in March.
Is Pulse the Solution to Ethereum Congestion?
Richard Heart stated that Pulsechain’s goal is not to compete against Ethereum but to reduce the network’s burden.
The project will not only fork Ethereum but also copy the state of the chain. Each wallet will receive a match of their ERC-20 tokens via Pulsechain. It will also be a huge airdrop.
If you have 10 eHEX, you’ll get 10 pHEX on Pulsechain.
However, it is impossible to determine the price of the same token on Ethereum or Pulsechain tokens. This means that the former may be less valuable than the former.
Why some believe Pulse is a Scam
PulseX and Pulse are most criticized because they are connected to Hex. This controversial token has done well in terms price, but with questionsable fundamentals.
Footprint Analytics, Source:
Richard Heart says that Hex is the blockchain’s native Certificate of Deposit.
Because financial institutions use these deposits to earn returns on the market, actual certificates of deposit exist. Because the currency that you deposit (e.g. USD) is salable and can be used to make returns, they are able to do so. USD has value and salability that can be used, which banks do by leveraging it. Certificates of deposit are useful because the bank uses the buyer’s money to generate value, in this case loans. The money doesn’t just sit in an account; it is able to be used to earn interest.
The locking-in mechanism, therefore, is necessary but not sufficient for CDs to function in their traditional sense.
The tokens that facilitate currency swaps on exchanges are the source of the high APY crypto staking earns. This service is in high demand. Hex does not facilitate any service, is not able to lend value, and has not been widely adopted as a digital currency.
Where does the 40% annual average APY come in? High returns can only be maintained by purchasing new Hex that has not been staked. This is the classic Ponzi scheme.
Scams and Ponzi schemes are common in traditional financial markets, which can be disguised as certificates of deposits. CDs that outperform the market tends to draw the attention regulators. Digital certificates of deposit, particularly those that promise too-good-to be true returns, should be closely scrutinized.
Hex’s smart contract, according to counter argument, is designed to encourage price stability. Bitcoin is only worth what it is perceived to be. It was actually very low value until it became a profitable, but risky, investment asset. Bitcoin was fueled by the desire to be rich, and then arguments over its soundness arose.
Bitcoin might eventually become a widely accepted currency. However, it started out as a highly speculative asset and was often called a fraud.
Hex claims that it can take the functionality and features of bitcoin, but uses proof-of stake and adds a Staking mechanism to increase returns for those who complete their terms in a negative proportion to those who don’t. Hex does not pay new currency. Instead of paying miners for newly minted currency, i.e. bitcoin, Hex pays inflation to those who provide stability. The potential for easy profits should encourage mass adoption. After that, an efficient ecosystem can build upon its foundations. Pulsechain, PulseX and other similar products are the first steps in that ecosystem.
Date & Author: February 8th 2022, James@footprint.network
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What is PulseX? And Why Did People Give It A Billion Dollars! CryptoSlate.
