Thursday, March 30, 2023
HomeEthereumAngel investor says Helium has no demand, returns are poor

Angel investor says Helium has no demand, returns are poor

Angel investor Liron Shapira stated that decentralized wi-fi web protocol Helium (HNT) generated solely $6,500 month-to-month for traders after the a whole lot of thousands and thousands invested within the agency.

Helium returns have been poor

In a July 26 Twitter thread, Shapira claimed that customers who spent between $400 and $800 shopping for the hotspot nodes per thirty days have complained in regards to the poor returns.

As an alternative of the anticipated returns of  $100 per thirty days, customers have been getting round $20.

Shapira claimed that even the $20 return is because of “a short lived subsidy of $19.99 from funding in rising the community, and hypothesis on the worth of the $HNT token.”

It signifies that the precise income is barely $0.01 per thirty days.

No finish customers demand

Moreover, he claimed that Novalabs, the corporate behind Helium, will get $300 million (30 million HNT) yearly from the community.

Shapira stated this income comes principally from retail speculators on the HNT token as a result of the Helium community doesn’t have an end-user demand.

In his opinion, that is accountable for its lack of income regardless of having over 500,000 hotspots. However “the whole lack of end-user demand for Helium shouldn’t have come as a shock.”

He added, “a fundamental LoRaWAN market evaluation would have revealed that this was a hypothesis bubble round a pretend, overblown use case.”

Helium’s response

Helium management has responded to Shapira’s claims with a Twitter thread defending the community.

Amir Haleem Helium CEO acknowledged that Nova Labs has solely raised $250 million since launch, and it “was for fairness within the firm, not for tokens within the community.”

He additionally touched on the income claims, saying Helium generates $2 million month-to-month from onboarding charges.

Haleem stated the $6,500 alleged income was from the month-to-month 650 million information packets despatched over the community. He continued that the quantity is small as a result of many of the units and purposes that may use it haven’t been constructed.

He additionally disagreed with the declare that the Helium service has no demand out there. In line with him, Helium focuses on LoRaWAN and already has a ready market.

He stated that the community has near 1 million nodes and covers 10% of the world’s inhabitants. The time horizon is 5-10 years, and solely after that may anybody take into account Helium to have failed.

Shapira reiterates claims

In the meantime, Shapira has posted a rejoinder disagreeing with the claims and reiterated that Helium is a failure ready to occur.

In line with him, the Helium crew has “constructed a Web3 bridge to nowhere.”

Shapira additionally talked about that Helium’s response to his thread “didn’t deny the surprising information I shared, or clarify why the venture failed so dangerous.”



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