PulseX, which raised $1 billion in less than half a year, is it a scam?-web3资讯-ODAILY

Original Author: James

Phase 1 of PulseX on January 10th"Sacrifice"The event closed, bringing the projects total investment to nearly $1 billion and making it the largest (albeit informal) funding round in cryptocurrency history.

This comes just 4 months after Pulsechain “sacrificed” $500 million. PulseX is expected to be the main DEX for future Ethereum forks."Sacrifice"The event is an event that calls on the community to provide cryptocurrencies in their hands free of charge for common beliefs.

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The disclaimer on the PulseX website reads:"The act of sacrificing cryptocurrency is not the same as buying PLSX. You can give away your cryptocurrency and sacrifice to prove your belief."

Detractors and supporters have different views on this provision. The clause was seen as either a loophole to avoid being labeled a security by the SEC, or evidence that it was the next Bitconnect.

Assuming that most of the sacrificed funds are real investments with profit expectations, rather than the project’s own funds, then how is the public chain led by Richard Hurt, the founder of the controversial cryptocurrency Hex? What became one of the largest crowdfunding campaigns in cryptocurrency history?

Also, why is the discussion of PulseX almost entirely limited to the Hex community? What is the relationship between them?

This article will explain what some people think Pulsechain and PulseX will do, and analyze why some people think the whole project and Hex are a scam.

What problem does Pulsechain solve?

Hundreds of successful DApps have been launched on Ethereum, but the popularity of the network makes it expensive and slow to use. In 2021, ethereums gas fees -- the price at which transactions are verified -- are occasionally running into the hundreds of dollars.

This made developers aware of the potential of new Layer 1 public chains such as Solana, Binance Smart Chain and Polygon - which host their own DApps. Some of these chains are not compatible with Ethereum and require bridging solutions to interoperate. Other public chain solutions, such as Polygon, are compatible with Ethereum.

For users, the most obvious benefit of using an EVM-compatible chain is that you can exchange ERC-20 tokens on this DEX, or buy project tokens on your chain on Ethereum DEXs such as Uniswap.

When building a layer 1 chain, developers could theoretically copy the entire code of Ethereum, create a completely different protocol, or, as in the case of BSC, improve it a bit.

fork"fork"Means an improved version, where developers make modifications to the protocol and its rules. When Ethereum undergoes upgrades, such as Londons upgrade, they are also known as forks.

According to founder Richard Heart, Pulsechain will be a fork of Ethereum. The extent of its improvements to Ethereum is currently unknown. However, according to its external statement:

4x the throughput
proof of stake
Deflation Mechanism Additionally, all major DApps from Ethereum will also be forked. In other words, the goal is to fully replicate Ethereum, including all DApps on Ethereum, with an established ecosystem from the start.

What is PulseX?

Since the Ethereum ecosystem will be replicated to Pulsechain, PulseX will be a fork of Uniswap.

It aims to be the main DEX of the Pulsechain ecosystem. For reference, PancakeSwap is also a fork of Uniswap that implements this similar functionality on the Binance Smart Chain.

integral"integral". These points correspond to the amount of PLSX that will be airdropped to their wallets after the exchange launches.

Likewise, the native cryptocurrency of PLS-Pulsechain will be airdropped to those who make sacrifices for the project.

The price of PLSX and PLS will start at $0 and the subsequent price is anyones guess.

Many believe Pulse will launch in March or April and PulseX by the end of the year.

Will Pulse solve Ethereums congestion problem?

Richard Heart once said that the goal of Pulsechain is not to compete with Ethereum, but to reduce the burden on the network.

As part of the Ethereum fork, each wallet will receive a corresponding ERC-20 token on Pulsechain. In other words, it will be a massive airdrop.

For example, if you have 10 eHEX (Ethereum Network HEX), you will get an additional 10 pHEX (Pulsechain HEX) on Pulsechain.

However, Pulsechain tokens will not be price-pegged to the same tokens on Ethereum, which means that these tokens could end up worthless, or more expensive.

Why do some people think Pulse is a scam?

The biggest criticism of Pulse and PulseX is that they are directly related to Hex.Hex is a very controversial token that is doing well in terms of price but has questionable fundamentals. According to Footprint Analytics, Hex is priced at $0.21.

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According to Richard Heart, Hex aims to be the blockchain’s native proof of deposit.

De facto certificates of deposit exist because financial institutions use such deposits to generate market-wide returns. Because the currency you deposit, such as USD, has marketability and value, it can be used. In other words, the money doesnt create value by simply being placed in an account, the certificate of deposit works because the bank uses the buyers money to create value, earning interest in the form of a loan.

In other words, the locking mechanism is a necessary but not sufficient condition for CDs in the traditional sense.

Currently, the high annual interest rates earned on cryptocurrency bets come from the tokens facilitating currency swaps on exchanges — a service that is in high demand. As it stands, Hex is not facilitating any services, generating value through lending, or gaining widespread adoption as a digital currency.

So, where did the high returns come from? There is a view that the high yield is maintained entirely by purchasing new Hex. A steady stream of purchase funds is the source of maintaining the price of Hex and supporting the income of early investors (pledgers). This is a typical Ponzi scheme incarnate.

This is the main reason mainstream critics think Hex is a scam.

In addition, scams and Ponzi schemes in traditional financial markets are often disguised as certificates of deposit. CDs that significantly outperform the market tend to attract the attention of regulators, while so-called digital certificates of deposit, especially those that claim to offer returns that couldnt be better, should come under scrutiny.

However, proponents have also refuted this statement.

The counterargument is that Hex’s smart contracts are built to incentivize price stability. The reality is that Bitcoin is only as good as its perceived value. In fact, its value was very low until it gained widespread adoption as a risky but profitable investment asset. In other words, the desire to get rich drives bitcoins price, and debate about the soundness of its fundamentals ensues.

Ultimately, Bitcoin may become a widespread currency, but it will start out as a highly speculative asset, often called a scam.

Hex claims to take the security and functionality of Bitcoin, but uses Proof of Stake, and adds a staking mechanism that increases rewards for those who meet deadlines, and a negative ratio for those who dont. Ideally, the potential for easy profit will drive mass adoption, after which a functioning ecosystem can be built on top of its fundamentals. Proponents argue that Pulsechain and PulseX should be the initial steps in the ecosystem.

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