Richard Heart took to Twitter teasing a PulseChain screenshot, adding, “Its [sic] working on private v3 testnet.”
Word of PulseChain first broke in July 2021, with the accompanying press release openly admitting its intention to fork the Ethereum code and add “significant enhancements,” including cheaper gas fees and quicker block times, at three seconds versus ETH’s 13 seconds.
“PulseChain is a new Blockchain-based cryptocurrency ecosystem that offers significant enhancements over the legacy Ethereum platform.”
The project is backed by the development company Everything Blockchain, with VC firm Overwatch Partners also in the mix.
PulseChain’s intention is to build a better version of Ethereum, but with key changes in the PRC20 standard and the Pulse (PLS) token, which can be staked with validators to earn yield.
At the same time, PulseChain does not seek to challenge ETH directly. Instead, it will “increase Ethereum’s value” by “sharing the load” with the original chain.
Not only did PulseChain take the Ethereum source code, but the state of the blockchain was also copied. Meaning ETH users have duplicate assets which are held on PulseChain. However, that does not necessarily mean a doubling of portfolio balances.
“PulseChain will re-enable priced out use cases: Instead of launching empty, PulseChain brings the ETH system state and ERC20s, this rewards holders and founders of Ethereum based projects.”
In addition, the project will launch the PulseX decentralized exchange (DEX,) enabling token swaps from other blockchains. In turn, PulseX has its own native token – PLSX.
The PulseChain website currently states the version 2 testnet is live “with validator rotation, registration, and staking.” As a public testnet, interested individuals can experiment with the protocol using testnet PLS tokens (tPLS).
Given PulseChain’s association with Heart, some have automatically labeled the project a scam. For example, Twitter user @IpsDeFi, who identified himself as the Community Manager at the tracking platform TapTools, recently said:
“Pulsechain is just an evm fork lol. Big scam to lock up your tokens.“
Similarly, in November 2022, Researcher Eric Wall shared an SEC letter, addressed to HEX, PulseChain, and PulseX influencers mentioning ongoing investigations. The letter was accompanied by a subpoena demanding addressees produce certain documentation.
The PulseChain website featured a disclaimer covering multiple points, including on airdrops, political statements, and taxation. There was also a reference to the Howey Test, used to determine U.S. securities status.
“You must have no expectation of profit from the work of others.”