Why PulseChain is Another Richard Heart Scam

Updated connected October 25th, 2023

July 2023 Update:

SEC charges Richard Schueler pinch securities fraud.

PLS dropped different 50% instantly after.

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It each started pinch nan Hex cryptocurrency scam and created a organization of get rich | speedy adherents fresh to go nan adjacent millionaires created from buying an plus whipped retired of bladed air. This organization was primed and hyped up by their creator Richard Heart for almost 2 years for their adjacent shearing pinch nan Pulsechain Ethereum fork copy/paste chain.

Below we talk nan goals of nan project, its trading angle, and why I telephone it a scam.

The Sell: Pulsechain “Airdrop”

Pulsechain’s large trading push was that everyone would get “free” copies of each their Ethereum tokens held successful wallets astatine nan clip of nan checkpoint. It was marketed arsenic nan “largest airdrop successful history.” Problem is, you can’t conscionable transcript and paste a concatenation and expect those assets to person existent value.

What is nan worth of a copied Ethereum asset? Comically, almost zero. For instance, you tin waste and acquisition 1 Ethereum, from nan existent Ethereum chain, to bargain 9.3 cardinal wrapped Ethereums connected nan Pulsechain. Why? Because nan Pulsechain Ethereum isn’t really Ethereum!

This would beryllium for illustration maine going to Kinkos and photocopying a $100 measure and trying to salary nan measure pinch it.

What Pulsechain users neglect to understand astir tokens connected different concatenation is that worth comes from exchanging an original Ethereum plus for nan different chain’s (wrapped) token done a bridge. It’s expected to beryllium for illustration getting a receipt that you tin waste and acquisition pinch but you only get to usage 1 astatine a time. You don’t get nan original plus and besides a photocopy and expect to person 2 assets of adjacent value. Otherwise, you could conscionable create blockchain forks each time agelong and mint caller money.

I deliberation this is communal consciousness to astir people, but nan conception appears to beryllium mislaid connected this Hexican crowd. Pulsechain is fundamentally a integer counterfeiting printing property of cryptocurrencies.

Pulsechain Hex (pHex)

The worth proposition to Hex users is simply a small different than to everyone else. Pulsechain was announced aft users of Hex started paying $100 to fastener up $500 of Hex backmost successful 2021 erstwhile Ethereum state fees spiked. Inside nan Hex community, everyone talks astir Pulsechain, truthful they will usage either concatenation based connected nan value and state fees astatine nan time, and successful this case, nan copy Hex tokens acts for illustration a banal split.

Double nan amount of thing while holding request changeless and nan value will halve. Or successful Hex’s case, driblet 75%.

There is nary system to arbitrage 1 for nan other, truthful they will some waste and acquisition for different prices.

Most Important Point: Not Decentralized

The number 1 logic what makes Pulsechain a scam is that conscionable for illustration pinch Hex, Richard Heart controls astir 90% of nan proviso of Pulsechain and PulseX. He obtained this power done his PLS first coin offering (ICO) which he called a “Sacrifice.”

Note: The SEC deemed ICO’s forbidden without a valid information registration, therefore, he coined nan word “Sacrifice” wherever “you springiness up your tokens and expect to person thing successful return” (wink wink). Remember arsenic explained connected my Hex article, these Hex tokens were besides obtained for free, but much comically, since he controls nan addresses that 1 had to donate assets to, he fundamentally donated to himself and sacrificed nothing.

Here’s nan worth including Richard Heart’s share:

And present is without:

Big difference: $21 cardinal versus $2.3 cardinal for Pulsechain and and further $20 cardinal successful nan different Pulsechain assets. Again, nan existent worth of these assets are substantially little than these figures connote because location isn’t immoderate important trading measurement to support immoderate existent amount of selling. Coinbase has nan 24 hr measurement of $983,902. Any important trading astatine this constituent would driblet nan value of PLS to zero faster than an asteroid colliding into Earth.

Anyone tin create a token pinch 4 quadrillion proviso and past make 1 waste and acquisition pinch himself astatine $0.25 and telephone himself a quadrillionaire. Only erstwhile you effort to waste a amount to different buyers does nan value find really find its worth.

But not only does it inflate nan marketplace headdress to make it look much applicable than it really is to show up connected coin ranking websites, but nan bigger rumor is that Richard Heart has eventual power of each transaction that occurs connected his chain.

With Hex, nan main consequence of owning truthful overmuch proviso was nan consequence of a rug pull, but now you person a rug propulsion consequence and a theft of assets risk.

Why moreover person a blockchain astatine this point? It would beryllium acold cheaper and faster to conscionable tally a SQL database disconnected an Amazon unreality website and move astir each nan Richard Heart monopoly tokens without validators. Anyone who uses Pulsechain intelligibly has nary knowing of nan constituent of blockchain: decentralization!

It doesn’t matter really galore validator nodes beryllium erstwhile a azygous entity controls much than 50% of nan PLS proviso because each Richard has to do is setup a azygous node and liking conscionable complete 50% of it to that node and past he tin o.k. immoderate artifact into nan concatenation he wants. What this intends is that Richard Heart has nan expertise to reallocate assets (steal aliases ‘redistribute’) aliases undo transactions.

Pulsechain is fundamentally nan antithesis of what blockchain is about.

The Hexicans telephone him nan “benevolent whale,” and spot him to do nan “right thing,” but what happens erstwhile this benevolent whale is kidnapped and starts getting many times deed successful nan caput pinch a wrench? Or possibly greed conscionable gets nan champion of him and he decides 1 time to afloat cash-out aft capable suckers… ahem… investors person entered nan ecosystem and he wants to bargain a yacht.

You’d fundamentally person to beryllium an idiot to put nan spot of your costs into nan hands of a azygous man…. a man who can’t look to get capable Louis Vuitton, Rolexes, McLaren’s and Ferrari’s to fulfill an full colony successful Monaco.

Marketing Pitch, Pulsechain Goals

Despite nan chaotic claims of “improvement” connected nan website, it’s mostly FOMO trading per accustomed pinch position for illustration “gold rush” and “whale” littered astir nan slug points.

Let’s tally done them:

Increase Ethereum’s value

Ethereum’s fees will beryllium lowered by sharing its load.

So your task is designed to summation different chain’s value? Well then, I conjecture I should beryllium investing successful that different chain! In each seriousness, Ethereum has plentifulness of L2’s and L1 competitors to stock its load. Pulsechain is going to pull a peculiar niche of Hexicans and nan betterment to Ethereum’s worth will beryllium negligible.

Enrich ETH users

PulseChain will re-enable priced retired usage cases: Instead of launching empty, PulseChain brings nan ETH strategy authorities and ERC20s, this rewards holders and founders of Ethereum based projects.

These adjacent 2 points are almost identical and nan only logic why I deliberation he added some points is because nan original volition of nan copied strategy authorities was to transcript everything, including dApps, over.

That doesn’t look to beryllium nan lawsuit though arsenic of this penning location are only 7 dApps successful nan ecosystem.

This would beryllium technically convenient for take to person everything “built-in” to nan caller concatenation per se, without requiring immoderate further effort connected nan portion of task developers, but really good will dApps activity pinch fewer different users interacting?

Generally blockchains commencement disconnected pinch a fewer dApps pinch users concentrating into those projects while they summation a pursuing and turn nan ecosystem and past commencement branching retired pinch further projects. It’s worth stems from nan web effect of users interacting pinch each other.

There would beryllium hundreds of thinly utilized Ethereum projects pinch minimal Pulsechain users engaging pinch each another. Imagine a liquidity excavation location wherever a personification sells a bunch of his assets creating an impermanent nonaccomplishment successful that excavation and location is nary different Pulsechain users to bring it backmost into balance.

Furthermore, since Pulsechain is simply a fork, immoderate caller changes to a dApp connected nan Ethereum concatenation would still request to beryllium redeployed connected Pulsechain. Likely galore developers won’t person an liking successful maintaining nan Pulsechain copies truthful nan dApps will turn old complete clip anyway.

Enrich ERC20 and NFT users

The motorboat of PulseChain is nan largest airdrop successful history. Thousands of Ethereum based tokens and NFTs person their free PulseChain versions. This new golden rush contains nan worth find of thousands of tokens and NFTs connected PulseChain. If you ever wanted to beryllium a whale successful a definite ERC20 aliases NFT, possibly now you tin be.

We already discussed this above: transcript and pasting an plus isn’t a worth proposition.

Easy to use

Your MetaMask wallet conscionable works, you only person to alteration a azygous mounting to entree PulseChain. ETH holders tin transact for free pinch freemium PLS.

I’m not judge why this was included. Firstly, I don’t deliberation that for astir group Metamask is easy to use, astatine slightest not initially. You request to setup RPCs, and flip backmost and distant crossed networks and support a database of wallet addresses wrong a mini small browser add-in.

Secondly, it’s not for illustration this was an invention of Pulsechain. If I spell commencement up a car company, would it make consciousness to commencement advertizing that nan conveyance is easy to use?

Lower PulseChain fees and service much users

PulseChain is 17% faster than Ethereum pinch 10 2nd blocks alternatively of 12.

Wow, clasp nan presses! We saved 2 seconds connected each transaction!

Or I tin conscionable spell complete to Binance Smart Chain and get 3 2nd artifact times and beryllium 70% faster than Pulsechain!

Remove pollution

By replacing impervious of activity miners pinch impervious of liking validators PulseChain doesn’t pain “waste” immoderate power making it environmentally friendly.

Newsflash, Heart, erstwhile you copy-and-pasted nan Ethereum fork, it had been Proof-of-Stake for complete 6 months! Pulsechain is nary much environmentally friends than immoderate different Proof-of-Stake coin.

Improve crippled theory

PulseChain reduces nan issuance of PLS by 25% per block, compared to Ethereum.

When a task starts talking astir Game Theory to beryllium their worth proposition, you should beryllium wary because that usually intends its a Ponzi.

And what is he really saying here? After nan tenth artifact (100 seconds successful Pulsechian’s existence) produced successful nan concatenation nan issuance is only 5% of what it primitively was and aft nan 50th artifact (500 seconds) its fundamentally nary longer inflationary?

I don’t deliberation this slug constituent was written correctly.

But anyway, Ethereum itself is fundamentally deflationary now aft nan Proof-of-Stake upgrade, truthful its moot.

Empower PulseChain holders

PulseChain’s autochthonal token $PLS tin beryllium utilized to activate validators to gain PLS for helping to unafraid nan network.

Nothing caller present pinch immoderate different Proof-of-Stake coin, but again, erstwhile a azygous entity controls much than 50% of nan supply, it’s only arsenic unafraid arsenic that entity.

Total Value Locked (TVL)

In an effort to marketplace nan concatenation to create worth for their PLS bags, Hexicans are moving astir and advertizing that Pulsechain is simply a “top 10 chain” successful position of TVL aliases volume.

Almost nan entirety of this TVL is connected PulseX. The problem is, what assets are locked? Uniswap allows you to position liquidity by pool, but Pulsechain doesn’t person a breakdown.

Are $400 cardinal look weighted monopoly tokens controlled by Richard Heart locked? Are valueless transcript and pasted stablecoins locked? Without knowing what is locked, we really can’t make a valid comparison.

Perhaps bridged assets are a amended reflection of TVL worth because existent assets from different chains person to beryllium locked. L2Beat has them pegged astatine $134 million, aliases 68% less; it’s still important but extracurricular nan apical 20 and little of a trading constituent to effort and thrust engagement of nan adjacent awesome chain.

Volume Spike

At motorboat location was a measurement spike, arsenic to beryllium expected from a agelong multi-year hold for Hexican users, but it has been declining complete nan past 2 weeks.

It’s still excessively early to tie immoderate conclusions here.

Pulsechain’s Value Proposition

For anyone extracurricular of nan Hexican circle, location doesn’t look to beryllium a existent usage lawsuit for Pulsechain and a fewer are honorable pinch themselves astir it:

The graveyard is littered pinch “Ethereum Killers” and those projects really made a existent effort to compete. Copy and pasting Ethereum isn’t a worth proposition and trying to get users by copying complete their existing Ethereum assets pinch Pulsechain photocopies is gimmicky.

Most importantly: Pulsechain isn’t decentralized and users consequence not only rug pulls of PLS itself, but consequence of nonaccomplishment for bridged complete assets.

This conscionable appears to beryllium nan 2nd coming of Richard Heart’s ongoing scams to enrich himself.