I used to be a huge fan of Helium. In case you don't know, it's a blockchain-based wireless network that uses a token-incentivization model to motivate people to set up and operate hotspots. These hotspots provide coverage for IoT devices and allow users to earn HNT tokens for their contributions.
Helium recently moved to the Solana blockchain, which should help to reduce its infrastructure costs. They have also managed to develop a dense network of hotspots with nearly 390,000 hotspots worldwide:
However, the main issue for Helium is that there are already many existing competitive wireless networks - e.g., in the US you can use T-mobile for $60/month. Therefore, Helium has repositioned itself as a low-cost provider, but it remains to be seen whether this will be enough to attract individual users. Most of Helium's current users are companies and universities using IoT services.
Key takeaways from the Helium case:
- It makes sense to use an existing blockchain platform, such as Solana, to build a new network on top of.
- Helium has managed to develop a dense network of hotspots using its token-incentivization model.
- However, Helium has not yet managed to convince many individuals to use its services.
Is HNT worth buying?
The answer to this question depends on your individual investment goals and risk tolerance. Helium is a relatively new project with a lot of potential, but it also faces significant challenges. It is more than 97% below its all time high with a circulating supply of 144 million vs a max supply of 223 million which is not so bad for a low cap token (market cap: $216 milion). However, HNT trading volumes are low and the token is no more listed on Binance.
If you are bullish on the long-term prospects of Helium and are willing to take on some risk, then HNT may be a good investment for you. It might also be a good bet if you are a short term swing trader since the volatility can be high with this kind of low market cap token with low trading volumes.
Disclaimer: Cryptocurrencies are a highly volatile asset class and prices can fluctuate wildly. It is important to do your own research before investing in any cryptocurrency and only invest what you can afford to lose.
