Another billionaire shilling another shitcoin or a good advice on a legitimate crypto project with strong fundamentals? This is the question crypto investors are likely to ask about a recent thread about Helium (HNT) and DIMO by billionaire Bill Ackman.
Ackman is an American billionaire, investor and CEO of Pershing Square Capital Management who has been rather critical of cryptocurrencies in the past. In his new Twitter thread, however, he does an about-face.
“The telephone, the internet, and crypto share one thing in common. Each technology improves on the next in terms of its ability to facilitate fraud,” Ackman said, and continued:
I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to believe that crypto can enable the formation of useful businesses and technologies.
The telephone, the internet, and crypto share one thing in common. Each technology improves on the next in terms of its ability to facilitate fraud. As such, I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to
— Bill Ackman (@BillAckman) November 20, 2022
Helium And DIMO, Not Bitcoin And Ethereum
To support his thesis, however, Ackman did not necessarily pick the most popular and well-known cryptocurrencies. Not Bitcoin or Ethereum, but Helium and DIMO are his dubious picks.
According to him, the two examples show that cryptocurrencies can have “intrinsic value” and are not a version of a “modern version of tulip mania.”
Helium, Ackam says, is creating a global Wi-Fi network that “will be used by Lime and others to track devices around the world, as well as for other purposes that benefit from access to global Wi-Fi networks.”
Ackman also points out that the Helium network already comprises 974,000 hotspots set up by individuals to mine the HNT token. On the intrinsic value of the HNT token, Ackam writes that it comes from its usage.
Customers of the network need to buy and burn HNT, he says, creating “a two-sided market for HNT” in which miners buy hotspots and deploy them around the world to earn tokens. Users, in turn, buy HNT tokens to use the network.
The more demand for the network, the more demand for HNT. Given HNT’s ultimately finite supply, the balance between supply and demand yields a market price […]. As such, HNT becomes a valued commodity whose price is determined by supply and demand.
The choice of Helium is more than…