Entrepreneur and author Liron Shapira Helium Networkaccused of being a speculative bubble. As Shapira points out, Helium is often cited as one of the most impressive use cases for blockchain outside of crypto.
Koinfinans.com As we reported, he highlighted the importance of Helium, prepared by venture capital firm Andreessen Horowitz or a16z, to the blockchain ecosystem. Shapira also reported that Helium has raised over $360 million in funding, but The Generalist Helium’s total revenue from its consumer business is only $6.5k per month.
An Overgrown Balloon?
Shapira emphasizes that Helium has accumulated over $250 million from the sale of hotspot nodes and sells them as a source of passive income.
In addition, Shapira pointed out that Reddit users expressed their disappointment with their investment. According to him, his earnings have dropped to just $20 per month, and much of it stems from speculation on the $HNT token.
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.
How Helium Can Prove Skeptics Wrong
The Generalisthighlights 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, stressed that big telecom giants such as AT&T owe to world governments. Gala also 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 it will be necessary for the company to expand its use case, as the demand for the network has not yet reached the required scale of supply.
According to Generalist, wither A partnership with Helium could be an important factor in increasing demand for Helium, as it will reduce the severity of the technological pressure on the platform.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.