Helium - $HNT, Asset Review
Helium Hotspot Statistics
769,510 active hotspots3,626 staked validators online75.28% of hotspots are functionalHotspots located in 172 countries & 58,078 cities
Helium’s network growth has been exponential from early 2021 to the present. Many have found that operating a hotspot allowed for passive income opportunities whilst contributing to a decentralized global wireless network that incentivizes users' tokens ($HNT) for securing the network. Helium created a win-win situation for all network participants from the top down to the bottom.
Content:General Information-What is Helium
Helium Background
Helium Funding/Collaboration
Token Information-Tokenomics
Consensus Mechanism (Proof-Of-Coverage)
Additional Information-
How to Earn $HNT
Technical Analysis
Conclusion
General Information-
What is Helium?
Helium is a decentralized, open-source protocol based on a blockchain for the world. It depends on a clever kind consensus mechanism called Proof-of-Coverage(PoC). Individuals of the wireless network are incentivized to host hotspots that reward them $HNT tokens while in return securing the network. The Helium Network is catered to provide long-range connectivity to the Internet of Things (IoT). This allows connecting long-term to anything on the internet via a decentralized wireless network.
2. Helium Background
Helium is a project-based out of San Francisco founded by Shawn Fanning, Amir Haleem, and Sean Carey in 2013. The founders believed that Internet-Of-Things(IoT) should be easy to access, so they created a strategy that made it simple. They created a network based on hotspots that help build and secure the blockchain. Each hotspot that an individual sets up will allow one to receive a certain amount of $HNT tokens in return. This grants the Helium entity to win as they can sell LoRaWaN services to entities, almost acting like an Internet-Service-Provider(ISP). Also, this allows the hotspot host to win since they are receiving a certain amount of $HNT tokens for each hotspot. Helium created a win-win situation within its business model and it’s brilliant.
3. Helium Funding/Collaboration
Helium has been through several funding rounds with the following firms: Khosla Ventures, Google Ventures, Multicoin Capital, Union Square Ventures, Andreesen Horowitz, FTX Ventures, Munich Re Ventures, FirstMark, Pantera Capital, and Tiger Global Management. Additionally, Helium has had great collaborations throughout its network with entities like Airly, Lime, CareBand, Salesforce, and many more. I want to share some examples of how partners using Helium’s network are critical. A few: (1) Airly is a cost-effective solution for hyperlocal air quality monitoring and control. Airly deploys sensors in cities and the sensors connect to hotspots to keep them activated for readings. (2) Lime scooters are electric scooters customers can rent by the minute and “return” by parking the scooters. Lime scooters require an internet connection when being utilized for rental purposes. The Lime scooters also require GPS which feeds off hotspots for live tracking in supported areas. (3) CareBand combines cutting-edge location and activity monitoring technologies with brilliant design to empower people with dementia and their caregivers. CareBand utilizes hotspots to locate those with dementia and/or ones with disabilities via GPS tracking. The Helium network is diverse in use cases as there are many more examples and ones that are yet to be discovered.
Token Information-
Tokenomics
As of April 2022, there are about 120 million $HNT tokens in circulation, with a capped supply of 223 million HNT. When $HNT first launched there were zero $HNT tokens in circulation. The idea behind launching with zero tokens was to create a more leveled and fair distribution throughout the market. Helium also uses PoC to mine tokens and rewards miners for every 30 blocks. The mining difficulty increases every two years as the first halving took place on August 1, 2021. Lastly, Helium uses a Burn and Mint equilibrium by burning $HNT and minting Data Credits. These Data Credits are later used for sending data to the internet, and/or paying users to access their network. This burn and mint methodology allow a level playing field for all users as the network grows.
2. Consensus Mechanism (Proof-Of-Coverage)
Each blockchain has a set consensus mechanism to settle transactions. The most common consensus mechanism(s) that the majority know are PoW(proof of work, i.e. Bitcoin-Ethereum) and PoS(proof of stake, i.e. Solana-Cardano.) Helium uses a consensus mechanism known as PoC(Proof-of-Coverage.) Proof-of-Coverage is an algorithm used to verify that hotspots are located where they claim. This consensus mechanism involves three unique roles like Challenger, Transmitter, and Witness.
Additional Information-
How to Earn $HNT
Earning $HNT as passive income with a low energy hotspot has caused a flood of individuals into the market. I set up a few hotspots myself that was found from one of the vendors on https://www.helium.com/ecosystem. Once the individual receives their hotspot they can download the Helium app and follow the steps until the hotspot is fully set up. Once you have connected to the network you will earn $HNT in one of the few methods per the graphic below. Please note that profits are not guaranteed as rewards vary on location and hotspot placement
2. Technical Analysis
Before sharing current price action, I wanted to reflect on when I first discovered $HNT. Below are two tweets from early and mid-2021 briefly discussing why I was bullish on $HNT. My initial target was $10 since there was not much price action. As the momentum was impulsive my targets updated to $50-100 as altcoins tend to have a quick explosive uptrends. Shortly after, per the last photo you see that $HNT has topped out at $57 concluding its 5th wave. $HNT appeared to begin a higher degree correction.
$HNT has had a sensational run from $.50 all the way to $57 yielding 100x+ returns. Ever since $HNT hit all-time-highs, we have seen the price fall into a high time frame demand zone (green box) acting as a support region. Price is likely to consolidate in the green box before making a new move. The way the correction subdivides will give hints on how the next move plays out. Bottom structures typically take a long time to form and reverse when the bears are exhausted, so it’s best to stay patient for a clear structure.
Conclusion-
Without a doubt, Helium has created the best business model surrounding a token. $HNT miners are incentivized for mining via their hotspots, and Helium the company is selling the coverage to entities. Helium creates a win-win situation for all and the use cases are consistently being found. Venture Capitalists are also bullish as its raised hundreds of millions of dollars through eight rounds of funding. There’s a reason why the first photo the 30D trend of hotspots is exponential with an 85,000% increase. Growth like that is almost unbelievable when you see it, however each day more individuals are contributing to building and securing a decentralized wireless network. Over time, I believe that the value of $HNT will continue to increase due to network growth and newly found use cases.
Please note that this research is not financial advice and all views are my own