Planetwatch, a project for air quality that is hosted on Algorand’s blockchain, was created by an ex-CERN manager Claudio Parrinello. Their utility token, Planets, facilitates all of the project’s transactions on the blockchain and can be earned in a similar way to HNT with Helium miners. Helium uses a “proof of coverage” model to provide connectivity to the internet of things network through the HNT token.
The miners have been very popular with most of the stock being sold out since early 2021. Helium, which has a market capitalization of approximately $2.7 billion, is one of the top 50 cryptocurrency projects in the world. Planetwatch has a market cap just $21million.
It works by placing sensors in your area that collect data about air quality and then sending that information to the blockchain. The tokens can be used for air purifiers and other eco friendly products, but they can also traded on exchanges like Bitfinex. The data is then shared. “consumers, specialized dashboards for corporate and governmental users, as well as data feeds for online media outlets.”
The most interesting thing about the Planetwatch Type 2 sensors is that they actually use the Helium network for data transfer to the blockchain. This is a great example of cross-chain blockchain projects working together to provide real-world utility. There are rumors that future devices could mine both Helium as well as Planets simultaneously.
The cheapest sensors cost €549,00 +VAT and require an annual license that starts at €50.00 + VAT per year. According to reports, these type 3 sensors will reward you with 46 planets per calendar day. This equates roughly to approximately $2,350 per the year based on dates rates. That is a very solid ROI, and the token isn’t even close to all-time highs. In November, the ATH reached $0.40. The token has a small market capital so it is difficult to predict where the price will go.
We can assume that rewards will decrease as more activity is recorded on the network. The price could drop by 50%, but investors in the type 3 sensor will see a return of over 100% for the year. Potential investors should be cautious about investing in the type 3 sensor as it currently has a daily volume of approximately $300,000. This low mcap/volume ratio should signal caution.
This intrigues me as someone who has mined many crypto tokens and enjoys trying new technologies. I am intrigued in the same way that I was interested in Helium and Chia, but they were too expensive and prohibitive for further investment. I have mined space, time and coverage. Perhaps now is the best time to mine air? I am a prospector and want to purchase one of these devices because the ROI sounds amazing.
The pragmatic me, however, says that the ROI will likely drop within a year to make it unprofitable. Things that seem too good to true are never sustainable. There does seem to be an environmental advantage to mining Planets. If we all became more aware of our local air quality, could we make better choices? I focused on reducing my consumption when I installed a smart electricity meter. Perhaps mining Planets will help me to make a small contribution towards improving the environment?
I am now half expecting that within the next few years we’ll see devices popping up that will mine multiple cryptocurrencies across several different validation methods. It will be a quality measuring router with an ASIC chip, GPU, SSD, and several other sensors for proofs that don’t yet exist. We could finally have an inexhaustible money glitch if it has a solar panel built in.
Until that day, I’ll continue to dabble with new projects with the money I can afford to lose as part of my crypto mining hobby. I don’t see this as a fundamentals play but Claudio Parrinello is certainly smarter than I am so I’ll keep an eye on Planetwatch. I might just have to play with the cheapest of the sensor options.
Source: Crypto Slate