2 years ago
Angel capitalist Liron Shapira said that decentralized wireless net protocol Helium (HNT) generated lone $6,500 monthly for investors aft the hundreds of millions invested successful the firm.
.@Helium, often cited arsenic 1 of the champion examples of a Web3 usage case, has received $365M of concern led by @a16z.
Regular folks person besides been convinced to walk $250M buying hotspot nodes, successful hopes of earning passive income.
The result? Helium's full gross is $6.5k/month pic.twitter.com/PyW6KPllvc
— Liron Shapira (@liron) July 26, 2022
Helium returns person been poor
In a July 26 Twitter thread, Shapira claimed that users who spent betwixt $400 and $800 buying the hotspot nodes per period person complained astir the mediocre returns.
Instead of the expected returns of $100 per month, users person been getting astir $20.
Shapira claimed that adjacent the $20 instrumentality is owed to “a impermanent subsidy of $19.99 from concern successful increasing the network, and speculation connected the worth of the $HNT token.”
It means that the existent gross is lone $0.01 per month.
No extremity users demand
Additionally, helium claimed that Novalabs, the institution down Helium, gets $300 cardinal (30 cardinal HNT) annually from the network.
Meanwhile, according to Helium web rules, $300M (30M $HNT) per twelvemonth gets siphoned disconnected by @novalabs_, the corp down Helium.
This "revenue" connected the books, which comes chiefly from retail speculators, is presumably what justified specified an assertive concern by @a16z.
— Liron Shapira (@liron) July 26, 2022
Shapira said this gross comes mostly from retail speculators connected the HNT token due to the fact that the Helium web does not person an end-user demand.
In his opinion, this is liable for its deficiency of gross contempt having implicit 500,000 hotspots. But “the implicit deficiency of end-user request for Helium should not person travel arsenic a surprise.”
He added, “a basal LoRaWAN marketplace investigation would person revealed that this was a speculation bubble astir a fake, overblown usage case.”
Helium’s response
Helium enactment has responded to Shapira’s claims with a Twitter thread defending the network.
Amir Haleem Helium CEO stated that Nova Labs has lone raised $250 cardinal since launch, and it “was for equity successful the company, not for tokens successful the network.”
our bully person and web3 enthusiast @liron wrote this thread beneath critiquing @helium that has gained immoderate traction. determination are immoderate points present that I wanted to address
— amir.hnt (
,
) (@amirhaleem) July 26, 2022
He besides touched connected the gross claims, saying Helium generates $2 cardinal monthly from onboarding fees.
so wherefore is determination lone $6,500 worthy of information being paid for? dissimilar cellular networks determination aren’t millions of existing devices that tin power to @helium. the champion applications haven’t been built yet, and it takes months oregon years to physique them
— amir.hnt (,) (@amirhaleem) July 26, 2022
Haleem said the $6,500 alleged gross was from the monthly 650 cardinal information packets sent implicit the network. He continued that the fig is tiny due to the fact that astir of the devices and applications that tin usage it person not been built.
He besides disagreed with the assertion that the Helium work has nary request successful the market. According to him, Helium focuses connected LoRaWAN and already has a waiting market.
He said that the web has adjacent to 1 cardinal nodes and covers 10% of the world’s population. The clip skyline is 5-10 years, and lone aft that tin anyone see Helium to person failed.
Shapira reiterates claims
Meanwhile, Shapira has posted a rejoinder disagreeing with the claims and reiterated that Helium is simply a nonaccomplishment waiting to happen.
.@Helium's CEO @amirhaleem and capitalist @KyleSamani replied to my thread astir Helium
They didn’t contradict the shocking information I shared, oregon explicate wherefore the task failed truthful bad.
But I admit their willingness to person an unfastened Web3 debate. Sorely needed.https://t.co/owbnlEYw0R pic.twitter.com/px5Gp2Frs5
— Liron Shapira (@liron) July 27, 2022
According to him, the Helium squad has “built a Web3 span to nowhere.”
Shapira besides mentioned that Helium’s effect to his thread “didn’t contradict the shocking information I shared, oregon explicate wherefore the task failed truthful bad.”
The station Angel capitalist says Helium has nary demand, returns are poor appeared archetypal connected CryptoSlate.
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