Entrepreneur and author Liron Shapira has accused web3 coin Helium (HNT) of being a speculative bubble. Here are the details…
Is the popular web3 coin a “bubble”?
As Shapira points out, Helium is often cited as one of the most impressive use cases for Blockchain outside of crypto. The crypto report by venture capital firm Andreessen Horowitz or a16z highlighted the importance of Helium for the Blockchain ecosystem. Shapira also showed that Helium has raised over $360 million in funding. However, Generalist reports that Helium’s total revenue from its consumer activities is only $6.5k per month.
Shapira highlights that Helium has accumulated over $250 million from the sale of its hotspot nodes and sells them as a source of passive income. He then pointed out that Reddit users expressed their disappointment with their investments. According to investors, his earnings have dropped to just $20 a month. Most of it stems from speculation on HNT tokens. Shapira reveals that due to the lack of consumer demand, the company does not receive funding from Web2 companies. He continues to call Helium a speculative bubble around an overinflated use case.
Demand for decentralized networks is growing
The general expert emphasizes that Helium’s push in the 5G space could be huge for the company. The global telecom market is one of the largest growing markets with minimal competition. Salvador Gala, co-founder of Escape Velocity, emphasized that big telecom giants such as AT&T owe to world governments. He emphasized that the need for decentralized wireless networks is important for the future.
Helium has also provided support for migrating to other architectures such as WiFi, VPN, and CDN. Generalist reveals that since the network’s demand has not yet reached the scale of supply, it will be necessary for the company to expand its use case. According to Generalist, a partnership with Solana could be a key factor in boosting demand for Helium as it will reduce the severity of the technological pressure on the platform.
Helium network outage
Meanwhile, there was an outage in the Helium network, as we have also reported as Kriptokoin.com. IoT Blockchain Helium encountered a 4-hour network outage earlier this week due to validator issues after a software update. This software update also caused a delay in finalizing the transaction. This network congestion caused direct barriers to miner rewards and token transfers, these token transfers were not completed due to the outage. There was no such effect on devices involved in data transfer to the network.
To maintain normal functions, the Helium team solved the problem by skipping their Blockchain forward one block. The Consensus group has stopped producing blocks with a block height of 1435692. The status update stated that due to a lack of network consensus, token transfers are partially completed as no new blocks are produced. The Helium network reported that it consisted of 43 randomly selected validators at fixed intervals, which continued to achieve network consensus.
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