Coin Bureau Projects Bright Future For Internet of Things Network Helium
According to Coin Bureau, decentralized network for Internet of Things (IoT) Helium (HNT) will eventually become one of the largest crypto assets.
In a recent video session, The host of Coin Bureau known as Guy shared with the channel’s 1.96 million YouTube subscribers that Helium (HNT) will one day become a “top cryptocurrency.”
“Helium may have a hard time in 2022, but to me, it’s a no-brainer that HNT will eventually become a top cryptocurrency.”
Helium (HNT) is a decentralized blockchain-powered network for Internet of Things (IoT) devices. Launched in July 2019, the Helium mainnet allows low-powered wireless devices to communicate with each other and send data across its network of nodes. The HNT token rewards participants such as wireless hotspot operators and validators.
According to the crypto analyst, HNT’s recent rise uptrend is not credited to its aggressive tokenomics.
“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.
Funny enough, it looks like the biggest buyers of HNT have actually been Helium validators and hotspot operators – almost 1,000 validators have been added since October, and each one must have purchased at least 10,000 HNT. If you do the math, that’s almost 10 million HNT or $300 million of buying pressure.”
The Helium network has added nearly 400K of hotspots in the past few months, which has increased its buying pressure, Guy explains.
“Almost 400,000 hotspots have been added since October, and that means each one bought and burned $40 worth of HNT. Again, if you do the math, that’s $16 million of buying pressure. This leaves around $100 million of buying pressure unaccounted for. I reckon this outstanding amount came from speculative investors and then some.
This speculative investing has declined as the crypto market has struggled. But – recall that there are still around 2.4 million hotspot devices waiting to connect to Helium’s network. This means HNT is basically guaranteed to see a minimum of $100 million of buying pressure in the coming months, which is a lot for an altcoin with a market cap of around $2 billion.”
At the time of writing, HNT is trading at $24.44, up 7.41% on the daily trading window.
