Today we continue to discuss a relatively 'problematic' project. If everyone watched yesterday's short video, you should have gained some insights. It reflects my thoughts on these newly launched projects. Trash projects, overvalued, while the U.S. stock market reaches new highs, the crypto market remains stagnant. Therefore, my strategy in the community is to short it because it is not worth this price.
The project discussed today is the token H, Humanity Protocol, which is a DID project. I previously encouraged everyone to participate in the airdrop in November because I saw they had secured good financing of 50 million USD, which is relatively high. However, the recent Fairdrop turned out to be an airdrop that I checked and found had not been distributed, and upon checking, the Chinese community did not receive it either, directly leading to a huge uproar in the official Discord, and the project side shamelessly closed the Chinese community. It's a classic case of insiders hurting other insiders!
Introduction
Humanity Protocol is an anti-witch blockchain network (zkEVM Layer-2), which can provide developers with a unique human identity verification mechanism and give users full ownership of their data and identity. The protocol uses palm recognition technology as a less invasive alternative to iris scanning and can be easily accessed via smartphones to establish proof of humanity in Web3 applications.
The iris scanning solution we know represents the project WLD, which has set up locations in many places around the world where people can scan for free as a verification of human identity.
Currently, this project requires verification through an app, which needs to be downloaded. The verification process is extremely ridiculous! You have to make several gestures in front of the camera (one is to open your palm towards the camera, and another is a fist with a thumb up). I find this process utterly insulting to human intelligence. How can you capture your palm print from such a distance? The project team is really fooling everyone!
There is also a physical device on the official website that supposedly can scan a person's palm print, but it is currently not open to the public. They need someone willing to become the so-called operator, meaning after purchase, they would become validators in this area and verify for others. This approach is quite unscrupulous. First, after launching the token and earning so much money, if you really want to do something, why not set up verification points like WLD in some locations? How much would that cost? And you also need to let others purchase it, mainly making B pay for it. To be honest, such physical palm scanning devices have existed for a long time; our country had fingerprint time clock devices many years ago. Is there really any difficulty in a full palm scan? A device costs no more than 100 yuan, and anyone can easily get a mold made in Shenzhen! The facts speak for themselves.
On June 23, there were reports questioning Humanity Protocol (H) as a 'domestic project shell,' as its version 1.0.2 APK file contained logos and images from Shenzhen Zhangteng Information's palm vein recognition access control device, raising questions about its authenticity. Netizens claimed that the project’s social heat might be manipulated by internal accounts, and user activity is in doubt.
The founder later responded that this was a residual resource from the old version test, which was not called upon and has been removed. He emphasized that data is completely encrypted and processed locally, not stored on servers in China, ensuring privacy and security. Regarding this commitment, I feel it's almost meaningless; doesn't the old version test still indicate that domestic products were used?
Project Financing Situation
The project is supposed to have three rounds of financing, the first being strategic financing, with the specific amount unknown.
The second round, on 2024-05-15, Seed round financing scale of $30 M, project valuation $1 B, investors include Kingsway Capital, Animoca Brands, Blockchain.com, etc.
The third round on 2025-01-27, Seed round (additional), financing scale $20 M, valuation $1.1 B, investors include Pantera Capital, Jump Crypto, etc.
Team Situation
The team situation is as follows. I checked the members and found that there aren't any particularly impressive experts. Among them, Yat Siu - Foundation Director, is the co-founder and executive chairman of Animoca Brands. Yeewai Chong - Interim Foundation CEO, is a former investment expert from Morgan Stanley / Ortus Capital. So, having these two is the reason they secured large investments, while the founder Kwok is from Hong Kong, so this project still counts as a domestic initiative.
Token Economics
The total token supply is 10 billion, with 1.8 billion currently circulating. The project peaked at launch, and the coin price has now dropped to 0.045, with an FDV of 500 million USD. Based on the financing valuation, the coin price needs to reach at least 0.1.
Token distribution is as follows: ecosystem 24%, early contributors 19%, identity verification rewards 18%, foundation 12%, community 12%, investors 10%, strategic reserve 5%. Thus, the project team has taken a total of 36% (19% + 12% + 5%), which seems a bit excessive. According to this ratio to calculate the coin price, an investment of 50 million corresponds to 10%, which means a market value of 500 million, so the investor's price should be around 0.05.
Looking at the release situation, the overall unlock period is 4 years, with 5% unlocking after one year for early contributors, investors, and strategic reserves. Currently, 0.92% is unlocked every month (ecosystem + foundation), and after one year, 2.88% is unlocked monthly, and since the foundation also gets their share, they can start selling off earlier than the investors, which is simply unacceptable.
Looking at the on-chain data, it can be seen on their official browser that the current active accounts have dwindled, and new accounts have also disappeared. Basically, they were just there to grab the rewards, and once the rewards are gone, no one plays anymore. Moreover, this airdrop has caused significant controversy, as the Chinese community did not receive it, which led to the official Discord exploding, and the project team shamelessly closing the Chinese community. It's a typical case of insiders betraying their own!
Finally, to summarize this project, it is in the DID sector, which does have its uses, but is long-term. In the short term, there isn't much application because current web3 applications can just use wallets. Moreover, DID is a very small application tool. I have said that tool-type applications cannot support a large market value.
Furthermore, the project team's vision is insufficient. As mentioned above, the various original sins of the project team show that they have a very poor image, completely disregarding users as human beings. The project team must understand that 'water can carry a boat; it can also capsize it.' I believe this project is not even worth a market value of 100 million, along with a significant amount of unlocks (nearly 1% each month), it is a garbage project. In the future, if you see anyone hyping up this project, they are likely being paid off, so just blacklist them. Follow me for updates; I will speak for the users!
