There is a coin called Humanity Protocol. While raising funds, this project was valued at one billion dollars, and venture capitalists agreed to that valuation. Around 50 million dollars were raised in two phases to establish the project. Additionally, there was another hidden strategic funding round, but the valuation or the amount raised in that round is not publicly known. Regardless, raising 50 million at a 1 billion valuation is not bad for any project.
Now the question is: why did VCs agree to such a high valuation for this project? The reason is that the purpose of the Humanity Protocol or the $H token is to offer proof of humanity without revealing identity. The crypto world has long awaited such a solution. Building such a project isn’t too difficult. The real challenge is — once people’s identities are stored on the blockchain, if that chain is ever hacked, the damage could be unimaginable.
For example, if the fingerprints of thousands of users are stored on the blockchain and that gets hacked, then those fingerprints can be used to access many things. Android users use fingerprints to lock their phones. We also use fingerprints for many on-chain transactions and even in Web3 wallets. So wallets are also at risk of being hacked.
As a solution to these problems, Humanity Protocol is introducing Palm Impression. That means they will store a user’s palm impression on the blockchain instead of more sensitive data like fingerprints or iris scans.
But the question is, who will use this?
One key use case is in airdrops for testnets. When users work on testnets, they usually receive airdrops. Often, bots perform these tasks — the same person uses 500 wallets to do the same work and receives excessive airdrops, leaving nothing for real users. But when each airdrop is verified through Humanity Protocol, bots will be filtered out. Even if airdrop hunters use their housemaid’s palm impression to operate multiple accounts, some level of control will still be possible.
Also, in many websites where users need to prove “I am not a robot,” this protocol can help.
The bottom line is: wherever proof of humanity is needed in the Web3 environment, H Protocol will provide the solution. Now you can understand how beautifully the pitch was presented to the VCs.
But now, what we are seeing is that the project’s downfall is abnormal. Why did this happen? Because a project like this requires mass participation and a lot of human records. So they had to give airdrops to many people.
The problem is, those who received airdrops are disappointed. They didn’t get what they expected. Those who submitted their housemaid’s palm impression are the real gainers. I personally bought the token twice in the morning and sold both times at a slight loss.
It’s not right to go outside your strategy. For any new project, it’s not wise to buy until there’s a clear 4-hour reversal — no matter how good the project seems.
Many people compared this to the Worldcoin (WLD) token, expecting 20x returns. But remember, WLD only unlocked 1% of its supply and played the game smartly. Humanity Protocol failed to do that.
Previously, coins used to fall under two categories — BTC and Altcoins. Later, meme coins emerged. Now we are back to just two categories — Bitcoin and Shitcoin. There’s nothing in between.
Trade carefully. Always check how your altcoin is performing against the BTC pair.
Good night. 🙂