What is Helium Network (HELIUM)? Project and Token Analysis

Coin: Helium
Ticker: HNT
Date Deployed: Tues April 18, 2023

Origin of the Project

Helium was founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey with the vision of creating a decentralized wireless network to support the growing IoT (Internet of Things) industry. Their aim was to build a people-powered network that would make IoT connectivity more accessible by offering economic incentives. In 2019, Helium introduced its flagship product, the Helium Hotspot, a device that provides wireless coverage for IoT devices using the LongFi protocol, which combines the long-range capabilities of LoRaWAN with the security and efficiency of the Helium blockchain. Users who deployed these Hotspots earned HNT tokens as a reward for contributing to the network’s expansion.

In September 2022, HIP-70 was approved, leading to a full migration from the Helium Blockchain to Solana, aiming to leverage Solana’s advanced features such as smart contracts, faster transactions, lower costs, and access to DeFi. After a brief delay, the migration successfully took place in April 2023, marking a new chapter for Helium. This transition to Solana enabled Helium to enhance its scalability and functionality, signaling a significant evolution in its mission to provide decentralized wireless coverage for IoT devices.

Helium Product and features

Helium LongFi:

Combines the Helium blockchain with LoRaWan architecture, enabling low-power, long-range wireless communication for IoT devices.

Proof of Coverage (PoC):

A consensus mechanism that verifies hotspot locations through PoC challenges, ensuring network integrity.
Roles in the PoC Challenge include Challenger (transmitter), Beaconer (being tested), and Witness (validating the challenge).

aBFT Consensus (HoneyBadger BFT):

Uses an asynchronous Byzantine Fault Tolerant algorithm that allows nodes to reach consensus independently, ensuring network stability and scalability.

Token:

HNT Token: Tradable token used to reward hotspot operators.
Data Credits (DC): Non-transferable tokens pegged to the US dollar, used to pay for network services and send data.
Burn-and-Mint Equilibrium: HNT is burned to acquire Data Credits, reducing supply and increasing value as network activity grows.

Should HELIUM Be in Your Portfolio?

Before you decide whether or not to add HELIUM to your portfolio, click here to scan the contract on Solsniffer. Solsniffer is the number one blockchain intelligence tool to detect security risks on Solana. Security risk analysis on Solana has never been easier, make sure to be aware of potential DeFi wallet scams and other crypto security concerns before investing.

Due Diligence Tips Before Investing or Trading HELIUM

Research the Token

Analyzing HELIUM as a token is important for understanding its potential. Review its whitepaper, community engagement, development team, and long-term roadmap. Is the project solving a real problem and has a clear plan for the token in its ecosystem?

Perform in-depth research before trading any Solana-related project, including HELIUM. Understanding the project’s whitepaper, the use case, and the founding team’s goals will give you insight into the coin’s potential.

The orderbook can leave clues too, when there are more buy orders than sell orders, HELIUM’s price is likely to rise, while an excess of sell orders could lead to a price drop. It can also help identify past market manipulation.

Develop a Safe Trading Strategy

Having a structured trading strategy prevents making emotional mistakes. If you cover multiple aspects, such as considering market conditions, clear trading goals, and determining entry and exit points, it can improve your chances of success. Your risk tolerance can make a great plan if you follow it and if the market agrees with your strategy.

In crypto, it’s easy to get caught up in the excitement and make impulsive decisions, especially when seeing how many others are making loads of profits. Avoid rushing into buying HELIUM during a price pump, as a correction can follow.

An effective risk management strategy is a great differentiator as a trader, and that includes HELIUM. Use stop-loss and take-profit orders to limit losses and lock in profits automatically. Also, position-sizing is smart to not risk too much of your capital on a single trade, protecting your portfolio from significant losses.

How to Scan HELIUM on Solsniffer

Copy the HELIUM contract address: hntyVP6YFm1Hg25TN9WGLqM12b8TQmcknKrdu1oxWux
Open the Solsniffer website and paste the address in the search bar.
Within seconds, a detailed analysis of HELIUM on-chain data is generated.
A security score called Snifscore also ranks the project out of 100 to determine the authenticity of the project.

HELIUM Tokenomics

Total Supply: 223,000,000
Max Supply: 223,000,000
Market cap: $1,344,811,320

Snifscore Analysis

Snifscore: 72/100
High-risk factors: 4
Medium-risk factors: 1
Low-risk factors: None

Summary of (5) Contract Passed Indicators

No scams linked to owner’s wallet
Diverse token distribution
Balanced ownership in top 20 wallets
Established contract stability
Active interaction in last 30 days

Summary of (7) Contract Risks to Consider

Mintable risk detected – High Risk
Freeze risk present – High Risk
Transferability risk found – High Risk
Large portion of LP is unlocked – High Risk
Metadata mutability risk – Moderate Risk

Find Out if HELIUM Is a Fraudulent Token

Detecting a scam project requires a combination of caution, research, and vigilance. Fraudsters come up with numerous ways to trick investors, staying awake to the warning signs before falling victim.

One of the first red flags is an offer that guarantees high returns with little to no risk. Rug pulls are the most common scam at the moment, the project creators build hype around a new Solana project and then disappear with the profits. If the team of a project stops providing updates, it could be a sign of trouble.

A few tips to protect yourself is to research the team behind a project, see how well they execute their roadmap, use secure wallets, enable 2FA and avoid giving your personal data to social media giveaways.