A conceptual framework for the Helium Network Token (HNT)

“I’m an HNT man” — Daniel Plainview circa 2020

Disclosure: I operate several Helium hotspots that earn HNT and co-founded HeliumEx, a community-driven service provider to the People’s Network. I’m also a research analyst at Messari and the views expressed do not represent that of Messari.

If you’re involved in any capacity with the Helium network, then you’ve undoubtedly been faced with the task of explaining it to the uninitiated. As a patron, I’ve dealt with this numerous times and at some point, I need to explain what the hell that little device is that I want to put in someone’s apartment.

Each time I’ve done so, I’m able…

A valuation of crypto giant — Digital Currency Group

This post was originally published on August 21, 2019, and sent to Messari Pro subscribers. Click here to access all of our historical content.

Introduction

Compared to traditional startups, crypto companies and projects have had an easier time getting their hands on cash — whether it’s through conducting a $4 billion dollar pre-launch token offering or tapping into the coffers of a founder who made a killing as an early adopter. We’ve seen a growing amount of traditional venture capital involvement in the last few years, but eventually, these companies will need to access the larger capital markets. Mining giants Bitmain…

Futures and options and swaps, oh my!

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What do Thales of Miletus and hedge fund managers have in common?

They use derivatives to speculate on the future.

In pre-Socratic Greece, Thales believed a bountiful olive harvest was on its way. He went to the owners of the olive presses and paid them a fraction of the cost of the equipment for the right to use them in the following year. When the next harvest was as good as he predicted, people were clamoring for…

A look at the last 75 years of monetary policy

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We’re all here because of the creation of a decentralized, non-sovereign asset called Bitcoin. Bitcoin has caused millions of people to re-imagine the very essence of money. It has spawned thousands of offshoots, many with cult followings, created novel forms of fundraising, and enabled new business models facilitating permissionless economic activity.

And now, this whole ecosystem which we call crypto has grown large enough to gain the attention of the President, the Secretary of Treasury and the…

Statistically significant data confirming the popular hypothesis

April 24, 2019

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For professional investors, life is measured in terms of alpha, the excess return an active manager earns above a defined benchmark. If you’re an equity investor it’s not good enough to earn 5% for your clients. Not when the S&P 500 returns 7%.

You’ve got to demonstrate some sort of “edge” that helps you outperform the market.

That edge can come in all shapes and sizes. Typically…

Understanding the scale of the world’s largest crypto exchanges

April 11, 2019

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During the bull run in 2017, cryptoasset prices soared and irrational exuberance was rampant. The now infamous NYT article “Everyone is Getting Hilariously Rich and You’re Not” proved to mark a cyclical top. People were “investing” without regard for fundamentals or valuation frameworks into projects with little to no development. And many speculators did strike it rich.

Some 2017 tokens produced eye-popping, slot-machine-like returns.

March 6, 2019

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When you say it out loud, it might sound like something is stuck in your throat.

But it’s actually a macabre reference to a child-sacrificing, Levantine god that represents coordination failures in society.

According to co-creator Ameen Soleimani, the name was chosen because the project creators believed “We must summon Moloch… to defeat Moloch.” …

Examining the origin of a century-old economic ideology and how bitcoin invalidates many of its core principles.

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What is money?

For something so pervasive in our day-to-day lives, it is unfortunate that people don’t ask themselves this question more often. Most people simply equate money with those pieces of paper stamped with faces of dead people, for that is what fulfills their preconceived notion of money — they buy groceries (means of exchange) at different relative prices (unit of account) with money saved in their checking account (store of value). …

Intro

Humans like to argue. It’s in our nature.

Take any facet of human experience and you can find two people who disagree on it. Nowhere is this more prevalent than in the realm of governance, where we argue who should have power, who gets to make changes to the system, and how decisions are ultimately made. Given the magnitude of the impact governance has, it is easy to see how this became a highly controversial topic.

Now imagine a nascent industry full of highly intelligent people with strong opinions (and egos), where most of the debate occurs on globally accessible…

An Analysis into CDP Demand

Last week, Hasu posted a great analysis of Maker Dai and its ability to scale. In summary, he explained how unlike other stablecoins, the supply is not directly linked to the demand due to the lack of direct redemption for the underlying peg. Rather it is the demand to take out a collateralized loan primarily driven by the desire to lever existing position, manage project treasuries or avoid capital gains tax. In my prior analysis and valuation of Maker, I incorrectly assumed the supply of Dai would be related to demand for it. …

Jack Purdy

Research Analyst @Messari

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