HNT Slips After Helium v3 Proposal Sparks Community Backlash

As an analyst with over a decade of experience in the cryptocurrency market, I have seen my fair share of ups and downs, bull runs, and bear markets. The current situation with Helium (HNT) is particularly intriguing due to its unique circumstances.


Following several weeks of unyielding optimism, Helium has recently given way to pessimistic forces, going against the trend as the overall market experiences an abrupt surge in the short term. The most recent market analysis reveals that HNT dropped by approximately 16% since last week, causing a shift in investor attitudes.

The current short-term performance of HNT is significantly influenced by a recent advancement within the Helium community regarding the forthcoming Helium v3 network update. Given the recent commotion within the community, it’s possible that HNT may experience some difficulties performing well in the near future.

A Short Primer On Helium v3

Last week, the official X account announced the release of their Helium v3 proposal that will change much of the old system that runs under the hood of the platform. According to the official blog post, the new system will include a new economic model to “empower others to join and successfully scale with [us] on the Helium Network.” 

Instead, let’s focus on an aspect of Helium v3 that expands the number of HNT tokens in circulation. As stated in a recent blog post, this updated model will augment the total supply by minting 5 million HNT specifically for HST redemption. These newly minted HNT can be redeemed for locked HNT after a year of implementation has passed.

The new economic model emphasizes adjustments related to emissions as well. This network will annually release 10 million HNT, with each platform subnetwork receiving an equal share. If the current plan is approved, the total supply would rise from 223 million to approximately 238 million – representing a nearly 7% increase.

In this suggested economic structure, residents have expressed dissatisfaction or criticism. One commentator mentioned that the plan appears similar to a gradual financial collapse, while others highlighted concerns about the inflationary tactics proposed by the development team.

User PessimisticPokerist expressed excitement about the ideas but raised a concern: “The part I’ve marked is troubling – suggesting a potential alteration to the maximum future supply of HNT. I believe it ought to remain constant at 230 million. Could it be that I’m misinterpreting this information?

HNT Slips After Helium v3 Proposal Sparks Community Backlash

As the proposal is still new, the main topics could shift as discussions within the community continue and evolve.

HNT To Return To Mid-August Levels

Due to community members voicing criticism towards the initial Helium v3 plan, there has been a noticeable shift in investor and trader sentiment, transforming an initially optimistic outlook for HNT into a pessimistic one. At present, these negative sentiments are driving the price downwards, with bears aiming for a short-term target of $6.1. This reverses the growth experienced since last month.

HNT Slips After Helium v3 Proposal Sparks Community Backlash

As an analyst, it’s evident that HNT’s momentum is trending downward, with bullish energy seemingly running out of steam. If the current bearish trend isn’t halted at around $6.1, we could potentially retrace back to the levels seen in July, effectively erasing all gains made since the beginning of the third quarter this year.

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2024-09-19 10:41