Bill Ackman, one of the most prominent proponents and investors in traditional finance, announced on Monday in a series of tweets that he is changing his tune on crypto and is now endorsing a crypto project, even if the project itself is questionable.
He has been an outspoken critic of cryptocurrencies and blockchain technology.
In a Twitter thread, Ackman stated his support for Helium, a decentralized Wi-Fi mesh network. Helium has been accused of forging endorsements from tech titans like Salesforce and mobility company Lime to legitimize its network, as well as exaggerating its relationship with DISH Network, which it claimed would grant it access to the company’s 5G spectrum.
According to Forbes, Helium’s tokenomics has a bad track record of favouring its founders and insiders while also using phony clients to boost token payouts.
In September, the Helium community overwhelmingly voted to replace its blockchain with Solana, with the promise of integrating Helium into the SOL network.
Despite Solana’s decline, Helium’s founder has vowed to remain with the blockchain network.
“Despite the ability of crypto to help fast-track fraudulent activities, with the benefit of sensible government regulation and oversight, crypto technology’s potential for beneficial societal impact may eventually compare to the impact of the telephone and internet on the economy and society, “ Ackman tweeted.
Ackman stated that after studying a number of “interesting crypto projects,” he began to “understand how a token could build integral value over time” and move beyond the speculative nature of a modern-day “tulip mania.“
Ackman tweeted, “a two-sided market for HNT (Helium’s token) develops over time, with miners purchasing hotspots and deploying them around the world to earn tokens. In order to use the network, users must first purchase HNT tokens, which means that the greater the demand for the network, the greater the demand for HNT. “
According to CoinGecko data, HNT has dropped nearly 95% in the last year. The token is now worth $2.23 per token.
Aside from endorsing Helium, Ackman also stated that he owns a stake in the ORIGYN Foundation, a relatively unknown project that claims to “unite industry leaders from art, luxury, media, entertainment, sports, and more with token holders.”
He also stated that he owns a quantifiable investment in Goldfinch Finance, a crypto lending platform that claims to pay 17% on USDC deposits with nearly $100 million in active loan value despite receiving only $100,000 in protocol revenue.
According to the company website, “Goldfinch yields are derived from real-world lending, and investments are collateralized off-chain, distinguishing them from the highly volatile DeFi lending you may be familiar with.”
According to CoinGecko data, its token is now trading for $0.63, down from an all-time high of $32.
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