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- 1 PulseChain is a layer-1 blockchain created by Richard Heart.
- 2 The project has brought $1 Billion, making it one of the largest funding rounds.
The founder of HEX, Richard Heart developed the PulseChain blockchain. In the initial coin offering, the chain raised Billions of dollars which it claims to utilize in developing Ethereum’s value. It provides users with a free copy of NFTs and tokens on the pulse network. The blockchain also claimed to be more environmentally friendly than Ethereum, which otherwise became irrelevant as the chain shifted to Proof-of-Stake
It took a snapshot of the Ethereum system state and replicated it on a new network with some modifications. The new network has a native token called PLS, which can be used to activate the validators, pay transactions, and bridge to other chains. PulseChain boasts of having a faster block time of 12 seconds.
To get a PLS token the user has to enter the sacrifice phase. It means that it will be airdropped to those who sacrificed for that project. They need to donate any cryptocurrency or fiat currency to a list of addresses or charities. The more they donate, the more PLS they receive.
What is PulseX
When the Ethereum ecosystem is copied to PulseChain, PulseX will be the fork of Uniswap. It is planned to be the DEX of the PulseChain ecosystem. DEX like Uniswap has its governance token UNI which grants voting rights to holders.
Similarly, PLXS will be PulseX’s token. The people who sacrifice get several points based on the time of contribution and time. These points correspond to the quality of PLXS to be airdropped to their wallets once the exchange launches.
The Purpose and Goals of PulseX
The founder of PulseChain said that the goal is to solve the congestion on Ethereum instead of competing with it. Instead of forking Ethereum, the project also copies the chain’s state. It means if anyone has eHEX (Ethereum Network HEX) the user will get an equal amount of pHEX (PulseChain HEX) on PulseChain.
PulseX is the decentralized exchange of PulseChain. It permits the users to swap any ERC-20 token or NFT on the Pulse network and it burns the portion of the fees to reduce the supply of PLS over time.
It also had its sacrifice phase where users can get PLSX tokens by sacrificing PLS or other cryptocurrencies. Both PulseChain and PulseX saw $1 Billion of HEX locked up during the sacrifice.
PulseX, the PulseChain’s native DeFi swap application allows users to exchange tokens on PulseChain for one another. Its goal is to provide users with the best possible trading experience and the ability to farm.
The Sacrifice Clause
The initial phase of PulseX sacrifice came to an end collecting a sum of $1 Billion. This makes it a most important funding round. This came when half of Billion Dollars got sacrificed to PulseX, an upcoming Ethereum fork where PulseChain is expected to be the prime DEX.
They have disclaimed on their website that by sacrificing their digital assets they are not obtaining PLSX. they can give their cryptocurrencies away and sacrifice them in the form of political statements.
What Problem Does Pulse Solve?
There are hundreds of dApps on Ethereum but its popularity has made it expensive to use and due to congestion, it is slow. In 2021, the gas price has reached hundreds of millions of dollars.
This made developers shift their attention to the cheaper and faster Layer-1 chains like Solana, Polygon, etc to host their Dapps. Some of these chains are not compatible with Ethereum hence they need crypto bridges to interoperate.
The most obvious benefit for the EVM-compatible chains is that they can swap the ERC-20 token on that DEX or buy a project token from the chain DEX. While building Layer-1 developers can copy Ethereum’s code completely and create a different protocol.
In the crypto language, this is called “Fork” which stands for the better version with developers making changes to the rules of the protocol. For instance, when Ethereum makes an upgrade this is called a fork like the London upgrade is the Fork. Richard Heart says that PulseChain will be Ethereum’s Fork.
The highlighted improved changes are 4x throughput, proof-of-stake, and deflationary mechanism. It means that all the Dapps from the Ethereum will be forked.
The Billion-Dollar Question of the Scam Controversy
The Security and Exchange Commission (SEC) has charged Richard Heart with conducting an unregistered offering of crypto asset securities that raised $1 Billion in crypto assets from investors. They also charged him and PulseChain with fraud for stealing $12 Million of offering proceeds to purchase luxury items which include watches, sports cards, and a 55-carat black diamond- The Enigma.
SEC in complaint said that Heart began promoting HEX in 2018 and that it was the first high-yield blockchain certificate to deposit. He promoted it by saying that a Hex token is an investment designed to make people rich.
From 2019 to 2020 Heart and Hex allegedly offered and sold Hex tokens in an unregistered offering, collecting more than 2.3 Million Ethereum including through so-called recycling transactions that allowed Heart to gain control of more Hex tokens.
Heart also made two additional unregistered crypto asset (PLS and PLSX) security offerings that each raised hundreds of millions of dollars in crypto assets and told those funds were intended to support the development of the crypto assets network.
Hence, Heart called investors to buy crypto assets that are not registered. He defrauded them by spending their crypto assets.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
