The founder of hedge fund management company Pershing Square Capital Management, billionaire investor Bill Ackman, has revealed he is interested in cryptocurrency project Helium (HNT), even though he would not invest in top cryptocurrencies like bitcoin.
During an interview with the New York City-based Fifth Avenue Synagogue, Ackman revealed that while he would not invest in top cryptocurrencies, he finds some projects in the space interesting. An example he pointed to was Helium which, as The Block reports, has built a decentralized wireless network.
It sells what is calls Helium Hotspots, which are small devices people can use to mine its native HNT tokens in return for hotspot coverage. The project’s website claims that by “deploying a simple device in your home or office, you can provide your city with miles of low-power network coverage.”
It adds that “hotspots earn HNT for building and securing network infrastructure and transferring device data.” To Ackman, the project is motivating people to “build out a global wireless network.” The billionaire clarified, however, he has not invested in the project himself or in its token.
Investing would have so far proven to be lucrative, however. Data shows HNT’s price has moved from around $1.5 at the beginning of the year to over $16.6 at press time, surging over 1,100% year-to-date.
While Ackman is planning on expanding his knowledge about cryptocurrencies, he hasn’t invested in the space yet. During the interview, the billionaire said he believes cryptocurrencies are “here to stay,” but sees BTC and other top cryptos are purely speculative assets. He was quoted saying:
It’s really interesting in terms of the business opportunities it helps create, although I wouldn’t invest in bitcoin or currency that’s a pure speculative asset.
To Ackman, intrinsic value is determined by cash generation. He even added that if one of his friends was heavily invested in cryptoassets he would be concerned and tell them to “ take the money, put into something a little more durable.” The billionaire is also not a gold investor for similar reasons.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured Image via Pixabay.com