Is Helium Crypto Good Investment & Legal? Legit Feb – March 2022 Review

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Helium Crypto Good Investment & Legal

Roberto d’Ambrosio, CEO of Axiory Global offers us his opinion and review about Helium Network. From his point of view and from his experience, he breaks down this project and gives us good information.

Helium Crypto Token: Can it be considered serious by investors?

HNT has had a good run, but is the token simply a fad or something deeper?

Helium Crypto Good Investment & Legal
Roberto d’Ambrosio, CEO of Axiory Global

Helium Crypto Token (HNT) is the cryptocurrency linked to the Helium new approach to telecommunication infrastructure using blockchain as its backbone to create a distributed network of nodes of low-powered wireless devices linked into a network and allowing data exchange.

In essence, every personal computer, laptop, smartphone can run the application and become part of the network, gaining HNT Tokens, thus “mining” the cryptocurrency, or data credits based on the amount of data exchanged. The differences with a “traditional” telecom infrastructure, which is based on dedicated cell towers, is evident.

At a first glance, in a pure “internet of things” new approach, Helium is leveraging on a virtually limitless availability of small nodes, connected one to each other, having the potential, as Helium CEO Hameer Halim stated on Twitter, to become the “largest cellular network in the US”.

While having a the largest network in terms of number of nodes and distribution does not equal to actual geographical coverage given the limitations of low-powered wireless devices, Helium is attracting venture capitalists and professional investors which are participating in founding the initiative and the HNT, the Helium crypto token which is available for trading on Crypto exchanges like Binance, FTX etc, has experienced an incredible run in its price, from $0.25 in mid-2020 to $1.18 at the beginning of 2021 and then shooting up to its highest valuation so far at $55.22 in November 2021. That is a staggering 2645 percent run.

Is HNT to be considered as good investment?

Digital assets are very risky assets. They are pioneering new technologies, and some will succeed, many will fail. Helium is based on a business model that is not focused on its crypto token, but on the utilisation of blockchain technology in a strategical, vital field such telecommunication network, using its crypto to incentivize its users and monetise their efforts.

Still, we are talking of a relatively new venture, entering a market dominated by telecom giants with enormous resources which are implementing new solutions themselves to preserve their positioning. HNT at the moment is a way to reward the technology users and provide a way to monetise their efforts through conversion in fiat money, therefore being characterised by one of the typical caveats of cryptocurrencies: their limited capability to be directly spent.

Helium is leveraging on a virtually limitless availability of small nodes, connected one to each other.

As all cryptos, they are highly speculative assets, characterised by shallow liquidity, and closely linked to the overall sentiment towards the performance of the economy and the financial markets. While the performance in 2021 has been beyond impressive, it is also true that at the moment the HNT is trading well off its peak valuation at $23.44, down 57.55 percent. A similar path as the other cryptocurrencies, including Bitcoin, which is now off its peak in a similar manner.

I know the following statement will disappoint many new investors and their faith in a new order in finance induced by new technologies, but in managing investment portfolios the rule is always the same: the higher the speculative nature of the asset (whatever the asset might be) the less part of the portfolio should be dedicated to it. Doing otherwise, it is gambling, not investing.

Therefore, while digital assets have their legitimate place in a portfolio of financial assets, the “weight” of such assets should be carefully sized, based on the quality of those assets, the time horizon of the investment portfolio, and the risk appetite of each individual investor.

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