Helium (CRYPTO: HNT), a blockchain based internet provider, has garnered serious attention in recent months. As a part of the latest round of funding, Helium raised $200 million and was valued at more than $1 billion. Google's venture capitalist branch, GV, invested in Helium a few years back during previous rounds of fundraising. Now, more well known venture capitalist groups have joined. This latest fundraising session raised four times more money than all previous rounds combined. This is exactly the type of growth investors should be looking for.
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The IoT Unicorn
The company's resourceful and creative business model aims to meet the rising demand for dependable 5G internet to support what is known as the Internet of Things (IoT). As devices continue to connect to the internet, a far-reaching and reliable network will be needed. New cars, smart home appliances, and other state-of-the-art technologies all require 5G with high bandwidth.
Helium's business model allows individuals to set up internet hotspots in their homes for a low cost. The hotspot then amplifies the existing individual's internet connection to all other Helium hotspots. As a reward for providing this service, the hotspots mine Helium's native token, HNT. With minimal equipment, anybody can set up a hotspot and start earning HNT. This method is an ingenious way to decentralize the internet.
More Helium use cases
Statistics show that the Helium network is growing at an exponential rate since launching in 2019. As of today, there are more than half a million hotspots in 47,000 cities across 163 countries. Anyone can view hotspots around the world by using the Helium Explorer on Helium's website.
Just for these reasons, many larger names in the industry have started to take notice. Current customers of Helium include Volvo, Cisco, and Schneider Electric. By using Helium's IoT network, these companies can connect their products to the internet in a cost-effective manner.
Some of the most significant milestones occurred in 2021. Last October, Helium landed one of its largest deals when agreeing to partner with Dish Network to provide 5G for customers. The City of San Jose agreed to a similar partnership to provide low income citizens with internet.
Helium and the competition
Helium has proven that their blockchain technology is a viable solution to satisfy the growing demand of 5G infrastructure. With additional money and more support, Helium is positioned as the blockchain of choice to support the Internet of Things.
Unlike some cryptocurrencies today, Helium provides real world utility. How many blockchains can say their technology is being used by local governments? Helium can. It is clear that the company has what it takes to revolutionize a burgeoning sector.
A marathon, not a race
The entire cryptocurrency market has been in a downtrend for more than five months. HNT is no different and has retreated more than 50% from its all time high in November. Movements in price should be evaluated but not scrutinized. It was only a matter of time that HNT would retrace at least a little after ascending more than 3900% in just 2021.
Investors should take the above into account but maintain focus on the big picture. Helium has supported major players in a broad range of industries. They offer a unique solution to a widespread problem. In the future more devices will need an extensive, reliable internet connection and Helium provides just that.
