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Another billionaire shilling another shitcoin or good advice on a legit crypto project with strong fundamentals? That’s the question crypto investors are likely to ask about a recent thread about helium (HNT) and DIMO from billionaire Bill Ackman.

Ackman is an American billionaire, investor and CEO of Pershing Square Capital Management who has been rather critical of cryptocurrencies in the past. In his new Twitter feed, however, he flip-flops.

“Phone, internet and crypto have one thing in common. Each technology improves upon the next in terms of its ability to facilitate fraud,” Ackman said, and continued:

I was initially a crypto skeptic, but after studying some of the most interesting crypto projects, I have come to believe that crypto can enable the formation of useful businesses and technologies.

Helium and DIMO, not Bitcoin and Ethereum

To support his thesis, however, Ackman did not necessarily choose the most popular and well-known cryptocurrencies. Not Bitcoin or Ethereum, but Helium and DIMO are its questionable choices.

According to him, both examples show that cryptocurrencies can have “intrinsic value” and are not a version of a “modern version of tulip mania”.

Helium, Ackam says, is creating a global Wi-Fi network that “will be used by Lime and others to track devices around the world, as well as for other purposes that benefit from access to Wi-Fi networks. world”.

Ackman also points out that the Helium network already includes 974,000 hotspots set up by individuals to mine the HNT token. On the intrinsic value of the HNT token, Ackam writes that it comes from its use.

Network customers must buy and burn HNT, he says, creating “a two-sided market for HNT” in which miners buy hotspots and deploy them around the world to earn tokens. Users, in turn, buy HNT tokens to use the network.

The greater the demand for the network, the greater the demand for HNT. Given the ultimately limited supply of HNT, the balance between supply and demand gives a market price […]. As such, HNT becomes a valued commodity whose price is determined by supply and demand.

The choice of Helium is more than shady, because the crypto project recently displayed false partnerships.

The partnership with Lime (cited by Ackman) and a partnership with Salesforce were simply formed by the Helium team, which placed their logos in the partnerships section of their website. Remarkably, this claim was rejected by both companies.

DIMO is an even lesser-known altcoin than Helium’s HNT. Ackman describes the crypto project as a pioneer in the automotive space.

“DIMO collects valuable automotive data from car data ports. It allows car owners to mint tokens by collecting data on their own cars. The data is valuable for the car owner as well as car manufacturers, suppliers, insurers, municipalities, etc. Ackman wrote.

The billionaire revealed that he was a small investor in DIMO, but not in Helium. Overall, his crypto investments represent less than 2% of his assets.

Bitcoin bull Michael Saylor was quick to question Ackman’s choice and suggested that the killer application for crypto is money, because the best-designed network is Bitcoin. Ackman, for his part, did not respond to Saylor what he thinks of BTC.

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