Updated on:12/12/2025 05:20 PM 
The cryptocurrency market witnessed a dramatic shake-up as the Ethereum-based HEX token experienced a catastrophic 60% price drop, erasing over $1 billion in market value following controversial statements from its founder Richard Heart.
In a startling revelation on March 10, Richard Heart publicly distanced himself from the Ethereum version of HEX (eHEX), declaring it an illegitimate iteration of the project. According to Heart, only the HEX token operating on PulseChain represents the authentic version of the cryptocurrency.
'The Ethereum chain is bleeding users dry with exorbitant gas fees,' Heart emphasized in his social media post on platform X. He presented Etherscan data revealing that HEX network participants have collectively paid more than $50 million in transaction fees on the Ethereum blockchain.
The outspoken entrepreneur argued that these substantial fees could have been utilized to acquire HEX tokens on PulseChain instead, suggesting a more economical alternative for investors.
Heart's public critique appears strategically aimed at encouraging eHEX holders to migrate to PulseChain, the Ethereum hard fork he launched last year. Despite this push, PulseChain has struggled to gain significant traction, recording only $472 million in trading volume over the past seven days—dramatically lagging behind Ethereum's $20 billion during the same period.
The market reacted swiftly to Heart's statements. Data from CryptoSlate shows the Ethereum-based HEX token plummeted to $0.00419, reducing the project's market capitalization from $1.8 billion to just $727 million. In stark contrast, the PulseChain-based HEX token experienced a 5% surge, reaching $0.0199 according to CoinMarketCap figures.
This divergent price action underscores the persistent controversies surrounding HEX and its associated projects. The token's history includes regulatory challenges, with the SEC previously charging Heart in 2020 for conducting an unregistered securities offering through HEX's 2018 launch. The legal action extended to all of Heart's crypto ventures, including HEX, PulseChain, and PulseX, which were collectively described as fraudulent by regulatory authorities.
As the cryptocurrency landscape continues to evolve, such dramatic shifts highlight the industry's volatility and the significant influence that project founders can exert on token valuations through public declarations and strategic positioning.
