Proposed Helium Switch sinks HNT value.
The move has made the HNT token lose some of its value over the month.
Yesterday we reported on Helium mulling over a change for their network , moving from their very own network and Internet of Things to Solana.
Helium has built its empire by incorporating technology that gives users the ability to create a decentralized internet network and earn tokens while doing so by their Proof of Location protocol. In working with Solana the developers at Helium have noticed the faster speeds and better overhead and are considering changing the entire ecosystem to be on the Solana blockchain instead of their own.
The price of the token shows that many of the investors and users in the community may not be completely on board with this decision.The proposal of the change has seen the token lose quite a bit of value since then .
The call for a change has led the native HNT token to see a 15% drop in value since the Tuesday announcement.The price of the token is currently at $4.78. This continues the downward spiral that the token has taken on lately adding up to more than a 40% loss in value over the last month. If we were to show a contrast to other tokens Bitcoin has only lost 1% this past week and Ethereum is up 1% in the past 24 hours.
Helium has faced issues for a while now, losing user confidence when it was discovered that Salesforce and Lime were not associated with the company though Helium claimed they were. Helium then went on to claim that their process for marketing brand partners wasn’t strict enough and needed to be changed,not fully admitting fault.
For those not too clear on Helium, the company is blockchain-based and provides users with individual hubs or nodes that build a connected Internet of Things or IoT platform. Having a node in your home or business will allow your to earn HNT tokens which can be used to earn passive income. The company has also launched a 5G network for cell phones that is also run by nodes that are owned by individual users. The cellular network is currently sitting at 3000 users.
The switch to Solana would be one due mostly to wanting more speed for the platform as well as increased security and scalability. The team at Nova labs claims this move will create the opportunity for more HNT tokens to be offered thus increasing the value of the token, sentiment has been mixed about the move so far.
Solana has been known for having issues such as slowing down of the network, multiple hacks and other issues that those that are on the Helium network are afraid will contaminate the rather healthy nature of the current Helium ecosystem. The team at Solana Labs recently released a new version of Soalna that is meant to tackle all of the issues from before but will in turn increase fees for transactions on the blockchain.