Consulting giant Fool analysts are in no hurry to invest in this altcoin project despite the big news. It was revealed that the project is an insider trader in a recent report.
Despite the huge news, analysts are cautious in this altcoin project
Decentralized Wi-Fi network Helium has announced a partnership with one of America’s largest wireless network operators. Helium is an altcoin project where you can earn HNT by mining ‘Hotspots’. To participate, you need to set up a Wi-Fi-connected hotspot that other people’s devices can access.
All this is seen as a technological revolution in theory. However, there have been some setbacks that Blockchain has been trying to solve since its inception in 2019. As quoted by Kriptokoin.com, a new Forbes report states that about half of all HNT was mined and sent to only 30 wallets in the first three months of the network’s launch. These wallets belonged to the friends and family of the creators of Helium.
Helium’s founders aren’t the only team to own some of the cryptocurrency they’ve built. For example, about 38% of ApeCoin, the cryptocurrency made by the creators of the Bored Ape Yacht Club NFTs, is concentrated in the hands of chosen individuals. Despite being kind of the norm, the app still isn’t getting any major publicity.
After these statements, it seems that Helium is trying to save its reputation and has started a new business, 5G. Initially, Helium’s network was focused solely on providing connectivity for internet of things (IoT) devices such as sensors and trackers. Businesses that have partnered with Helium’s IoT network include Volvo, Cisco, Schneider Electric and Dish Network. Still, arguably the most important partnership in Helium’s history has emerged over the past few weeks.
Helium’s plans to team up with the country’s #3 wireless provider
On September 20, Helium said it has partnered with T-Mobile (TMUS -0.35%) to create a new 5G wireless service called Helium Mobile. Users will operate similarly to Helium’s current business model, by setting up nodes to expand the reach of the network. By partnering with Helium, T-Mobile will be able to cost-effectively expand its 5G coverage as it won’t have to invest heavily in capital expenditures to build infrastructure. Instead, user-run hotspots will provide 5G access.
https://twitter.com/helium/status/1572245557292269574
The agreement between the two companies is scheduled to last five years. In addition, the network is scheduled to be available in the first quarter of 2023. Once operational, T-Mobile customers will be able to enjoy two new benefits. First, their access to 5G coverage will increase significantly. The plan is for phones on the T-Mobile network to switch between user-operated nodes of 5G or Helium provided by T-Mobile’s existing infrastructure, depending on which signal is the strongest. Additionally, not only will 5G node operators earn the new crypto MOBILE, but customers will also be able to earn rewards for agreeing to share data on the performance of the network. To make things a little sweeter, cell phone plans are set to start at just $5 a month.
Analyst RJ Fulton prefers to wait a while before buying HNT right away. Fulton briefly explains why he is cautious.
Investors should be cautious about adding Helium to portfolios. There’s definitely potential, but that doesn’t come without increased risk. Let’s wait and see what the rollout of 5G will look like before making the final decision on Helium and its new MOBILE token.
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