Recently, popular crypto analysis show Coin Bureau explained why little-known $HNT, the native token of Helium blockchain, could one day become a cryptoasset.
According to its developer documentation, the Helium Blockchain, which was officially launched on 29 July 2019, is “based on a new, novel work algorithm called Proof of Coverage (PoC), and rewards miners in $HNT,” and it “powers the largest, public, decentralized LoRaWAN Network in the world.”
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Helium is “a global, distributed network of Hotspots that create public, long-range wireless coverage for Internet of Things (IoT) devices.” Hotspots “mine and are rewarded in HNT.” The Helium blockchain is “an open source, public blockchain that incentivizes the creation of physical, decentralized wireless networks.”
“Helium may have a hard time in 2022, but to me, it’s a no-brainer that HNT will eventually become a top cryptocurrency...
“All these updates, announcements, and developments have taken HNT on a tear. And though it’s fallen more than 50% from its all-time high, it’s still in a strong uptrend. This is actually somewhat surprising given HNT’s tokenomics…
“HNT’s initial inflation is fairly aggressive, with its supply going from 0 to 150 million in its first four years. If my calculations are correct, HNT’s circulating supply has increased by about 14 million in just the last four months. Assuming an average price of $30, that’s $420 million of potential sell pressure...
“While it’s very unlikely that all of this newly minted HNT was sold, 35% of it went to the holders of Helium’s 10,000 security tokens as per the initial distribution schedule… A recent interview with Helium COO suggests most of the [those tokens] are held by Helium’s investors rather than the team...
“What’s interesting here is that one of Helium’s biggest investors is Multicoin Capital, and it is insanely bullish on Helium as a project. As such, it is safe to assume that it isn’t selling too much HNT if any. Even so, a substantial chunk of HNT’s newly minted supply was likely sold because that remaining 65% is going to validators and Helium hotspot operators as rewards.“
Guy predicted that Helium was “basically guaranteed” to see a minimum of $100 million in buying pressure in the coming months, which he said would have a substantial impact on a coin with a market cap of roughly $2 billion.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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