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This isn't for IoT home devices. This is a network for specific business segments, municipalities and researchers. The coins are just to convince people to buy

by Clent 4y ago

This isn't for IoT home devices. This is a network for specific business segments, municipalities and researchers. The coins are just to convince people to buy the equipment and spread it out. Filling in the grid is more profitable than adding multiple nodes to the same segment. This causes a sort of mlm scheme where those who are 'in the know' are convincing family and friends to install these devices for a share of the profit.

TheDudeMan 4y ago
They could have paid them in dollars.
- dcolkitt 4y ago
  How is it any different than any other startup compensating its employees or vendors with equity instead of cash? Generally it makes sense for an early stage company to convince its partners to take equity or equity like instruments instead of cash. This is preferable for a number of reasons including: * Early partners are probably optimistic on the project (and hence why they're partners), and therefore want to participate in the upside. * It aligns incentives, where early partners are heavily invested in the success of the project. * It removes the cost, distraction and uncertainty of having to raise more cash to pay early partners by selling the equity to outside investors.
  - ForHackernews 4y ago
    > How is it any different than any other startup compensating its employees or vendors with equity instead of cash? It avoids securities regulations around disclosure, insider trading, etc.
miohtama 4y ago
The token exists to bootstrap the ecosystem and give early adopters upside. Otherwise getting necessary global adoption to get it off the ground is not possible. Like with all startups Helium has under 10% chance to make long term and for that upside to realise.
- wmf 4y ago
  People are saying the gateways cost ~$100 to make and there are ~1M of them which is $100M. Helium has received >$250M of investment. They could have just sent out the gateways for free instead of using crypto.

by Clent 4y ago

TheDudeMan 4y ago

They could have paid them in dollars.

dcolkitt 4y ago
How is it any different than any other startup compensating its employees or vendors with equity instead of cash? Generally it makes sense for an early stage company to convince its partners to take equity or equity like instruments instead of cash. This is preferable for a number of reasons including: * Early partners are probably optimistic on the project (and hence why they're partners), and therefore want to participate in the upside. * It aligns incentives, where early partners are heavily invested in the success of the project. * It removes the cost, distraction and uncertainty of having to raise more cash to pay early partners by selling the equity to outside investors.
- ForHackernews 4y ago
  > How is it any different than any other startup compensating its employees or vendors with equity instead of cash? It avoids securities regulations around disclosure, insider trading, etc.

miohtama 4y ago

The token exists to bootstrap the ecosystem and give early adopters upside. Otherwise getting necessary global adoption to get it off the ground is not possible. Like with all startups Helium has under 10% chance to make long term and for that upside to realise.

wmf 4y ago
People are saying the gateways cost ~$100 to make and there are ~1M of them which is $100M. Helium has received >$250M of investment. They could have just sent out the gateways for free instead of using crypto.