Hedera’s Billions of Transactions—But Is HBAR Valuable? | Daily Crypto IQ 🧠

This week is called the value capture test, aka the token autopsy, and we're examining for projects with recognizable products and asking whether the economic success of the product actually reaches the token and more specifically the token holder. Tonight we're going to begin with Hyera, also known as HAR. But remember, Hyera is the project. HAR is the ticker. Hideera's strongest selling point may also create its most difficult economic question. Transactions are extremely fast, predictable, and inexpensive. But inexpensive transactions require enormous amount of scale before they produce a substantial fee revenue. And we're hoping that that fee revenue is going to be impactful for the market cap of the token HAR. And the investigation arrives at an interesting moment for HAR at this very moment when we're doing it cuz on September 4th, HAR announced Wise Key as a new strategic

partner focused on cyber security digital identity and connected devices along with Space Dev as a community partner. Those relationships may strengthen HAR's ability to reach enterprise users, but they are partnerships, not proof of production or product demand. That distinction is going to matter throughout tonight's investigation. We need to separate organizations associated with HAR from organizations building live applications on HAR or Hideera Hashgraph and then separate live applications from applications producing reoccurring fee paying activity that would ultimately wind up in the market cap of the Har token. So for anybody just joining us tonight, the conflict is pretty simple. HAR may be one of the better designed networks for high volume enterprise activity, but a good network is not automatically a good token. And I hope that you're ready to raise your crypto IQ here with us at Underground Crypto

uh research deep dive research show as we always say because a project can have great tech, great leaders, all that stuff. But if you buy the token associated with it, it doesn't mean that the token will automatically do well itself. We are going to trace the entire path from user to transaction to fees to staking to the har token and discover whether there is economic value actually flowing to the token. I know it's a little repetitive to say that, but that is what most people are most concerned about, right? Who's all in this chat? Heyo, long time no see. JDub, welcome in. Anybody else? I think we're pretty much caught up on the chat. Thank you. Blues guy says, "Small token of my appreciation for your dedication. Love that." Super chat. Remember guys, as I said before, we have

got rid of our ad revenue here on the channel. I do that for you guys. Is it a crazy amount of money that I'm paid by YouTube for ad revenue? No. Is it some money? Yes, it is some money. The point is, and my thinking was, people tend to not like it. It cuts me out at points where I'm talking about stuff they probably really want to hear. And because we're live, it doesn't just start back where they left off. It just starts back where we're live, right? And so, a couple super chats, memberships help support the channel and the work that I do, and we could just get rid of those ad revenues. So, please consider a membership. They are down under the channel. So you will see where it says memberships, you get custom emojis that I

made myself and various other things, right? And then of course, don't sleep on that free Discord that is linked down in the chat. I had to look at my phone to make sure I actually linked it down in the chat, right? So come over to our free Discord and hang out with us. Talk to us about whatever interests you in crypto. Somebody, including me, will uh definitely respond. So, crypto projects frequently promote transaction totals as proof of adoption. And that is where we're kind of going to start here. Let me make it so you can see the notes. I know some people are very visual learners. And because they're so visual learners, I want them to be able to see the notes, right? All right. We are caught up on the chat. So one transaction can represent a person

paying for something valuable. An automated application recording a tiny event, right? That can be put on chain. A bot moving assets between account that would be represented on chain. A subsidized ecosystem program. A lowv value consensus message that doesn't really have any huge value that'll be recorded on chain. And of course, a smart contract interaction producing substantially higher fees. Counting them equally can create a misleading picture. So here's what we're saying here. Because although I have the notes, I'm going to explain in better detail. All of these different things right here that I'm highlighting are something that could show up on chain. But then to take those transactions and put them all together into one number and say this is proof that our blockchain is being used by people is not exactly genuine, right? That's not exactly true. And

so when they do that, it is disingenuine or maybe skewing the lines. Maybe they do it knowing that they're being dishonest or maybe they just do it because that's what everybody else does. But either way, saying we have this many transactions and not telling us what the transactions are, breaking them down into categories for us makes it very difficult to know if any of those transactions are meaningful in the ecosystem as far as revenue and then revenue going into the token. That's what's important. So, evaluate a network's activity through three separate questions. Is the network technically capable? Are independent users generating meaningful activity and does the activity create durable demand for the token? The payoff is this prevents us from thinking or mistaking throughput for adoption or adoption for token value capture. Capacity is not usage. Usage isn't revenue

and revenue is not automatically token value. Signal versus noise. This section is important versus unimportant, right? Liquid network reports approximately 320 million withdrawn. What happened here? This is kind of like a a little bit of a news segment, right? But we're we're going to apply it to tonight's thinking. Liquid Network reported that roughly 4,000 of approximately 4,200, so they got most of them. BTC held in a Federation wallet were withdrawn. Liquid halted. Liquid the company, right? Not to be confused because there's so many times we're talking about liquidation and liquidity and stuff. Liquid is the company halted new transactions while the situation was investigated before they lost those other 200 Bitcoin. Right. The parties were described as uh purported white hat hackers, but the recovery and technical explanation remains unsolved. White hat is referring to good guys, [music] not

bad guys. Why this matters? Why are we bringing this up? This is not merely another smart contract exploit. Liquid relies upon a federation responsible for critical network functions that makes key management, uh, operational authority, and the ability to pause the system part of that security model. Who benefits or loses from this? Well, users lose access and confidence while transactions are halted and they hear that like 90% or more of the BTC and the Federation is missing. All right, that that shakes confidence a little bit. Competing settlement networks benefit if liquidity or liquid, sorry, so used to saying liquidity. Uh benefit [music] if liquid security model appears to work. So, there's kind of a two-edged sword here. like you lose confidence cuz the network's down and there was a problem and money is missing. But the security seemed to work

and halt transactions. It just didn't seem to do it quite soon enough. Security researchers may provide value if the funds are recovered. And attackers benefit if the white hat description proves inaccurate. Right? If the attackers are not good guys, well then the attackers just made a whole lot of money. Also, I will say that I just saw on Twitter maybe 45 minutes an hour ago that they had gotten a huge portion of that money back. So, they have recovered some funds. So, we're going to say that this is signal, right? This is important. But, of course, it's still developing. It's still recent here. Look at those super chats. Thank you guys. Hey, if you if you guys just a little bit of super chat one tells me that you appreciate the work that I'm doing and that you're watching

the show, but it keeps me from having to put those ads on and I'm so happy to do that. Lolo says, "Yo, keep going." Usually, 100%. He says, "100% I will keep going regardless of uh who's here, but I love it when you guys are here. Don't get me wrong." Melissa threw a 199 super sticker. Appreciate that. Melissa says, "I own a white hat." There you go. So, that means you're a good that means you're a good person. That's what that means. Oh, man. I love being here with you guys. I miss you guys over the weekend. Saturday, we had a little something to do. I went to my brother's house and it was, you know, family and all that kind of stuff. It was a lot of fun, but I do miss my stream. And then Sunday, let

me tell you about Sunday. Sunday was a busy one. Very, very busy for my other business. But here it is, Monday. Never takes too long for it Monday to show up, does it? I know you guys feel that. All right, so wrapping up this story here. What do we want to watch out of this situation? Of course, whether the BTC is refunded. Now, it's reported that they have recovered a huge portion of those funds. I don't know if that's 100% fact, but that's what I saw. And a verifiable technical post postmortem, right? We need to know what the heck happened, why valid withdrawals were possible if the cryptographic key wasn't compromised. That needs to be explained. And changes to Federation custody and authorization should definitely be re-evaluated if nothing else. So 21 financial institution plan a joint stable coin.

So there are 21 financial institutions that are putting together their own stable coin and this group includes Goldman Sachs, Bank of America, City Bank, Deutsch Bank reportedly plan to establish a company that could issue a joint dollar stable coin during the first half of 2027. Now, this is very much what I guess a lot of your I don't know XRP people are concerned about and other people who just don't want to see the banks make their own crypto coin and then control it. They want them to use what we've already built. They're going to do what is in their best interest and that's how big money and big bank works. But why does it matter? It's because traditional finance institution increasingly accept the usefulness of blockchainbased settlements. That's a positive, but they may prefer assets and infrastructure that they

control. Who's surprised that a bank would really prefer things that they could control? So, who benefits or loses from this? Well, participating banks could retain deposits and payment relationship. Big problem for the banks is with all the stable coins. If they don't own any of the stable coins or infrastructure, well then their customers are essentially going somewhere else right now. Their customer may keep some money, their paycheck, direct deposit in the bank account associated with the bank now and maybe just use stable coins and things for other things, right? But the more that this space advances, there may come a day where if they're not on top of it, they're not even going to get that direct deposit from people's jobs and stuff like that. It it's a big deal for banks. Stable coin infrastructure providers could gain institutional

volume. That would be interesting for for the stable coin infrastructure, right? Existing issuers uh could face major competition, which is coming. They're going to have major competition. They've had it somewhat easy. USDT, USDC haven't had a lot of big institutional players coming in, not just using other things, but making their own. Public networks might benefit, but only if the stable coin uses them meaningfully. We're going to call this signal. We're going to say this this does matter. But the connection to to tonight is that institutional blockchain adoption does not automatically benefit every public network token. We must identify which network is used, which fees are paid and whether the underlying token capture meaningful captures meaningful demand. Right? So before we get into the investigation, one thing I kind of want to say is that I'm losing my train of

thought. Oh yeah. Is that for most of crypto, and you guys probably know this, you buy the token associated with the project. Hopefully there's good tokconomics, but with a stable coin, there's just the stable coin and the issuer is making all the fee. So, how do you as a normal retail person benefit from that? It's a it's kind of an ongoing question that would be interesting to hear people's takes. Now, there's certain things you could do like uh USDC, a Circle Group. I don't know the full setup of their logistics behind the scene, but I would imagine maybe the revenue comes into the company and buying the stock would give you exposure to that that increase in value. But for most of them, USDT, how would you benefit from USDT? Can you buy USDT as like a stock or

something? Tether, I don't think so. I believe that they're still very much offshore and not on a stock market. I don't live on the stock market, so I don't always know what's there and what's not. I live in crypto every day 24/7, but I believe it's for your benefit. So, the crypto investigation, of course, we're talking about HAR, Hyera. So, we need to talk about what it is. What is Hideera? Anybody have any idea what HAR is? Hashgraph? Anybody? So, let's start from the basics here. Hideera is a public proofofstake distributed ledger built around hashgraph consensus algorithm. So hashgraph is their you know signature product that they use. Consensus means how it works right and of course you know what an algorithm is rather than a conventional chain of se of sequential blocks. information. Information spreads through gossip about

gossip is one way that they define this. Nodes share transactions and information about previous communications allowing the network to calculate consensus without energyintensive mining. So there you go. If you wanted to know if it was proof of work, it is not. HAR provides several different services. So as we talk about what something is, we also talk about what is it doing. Crypto service, HAR transfer and account activity, token service, native fungeable tokens and NFTTS, consensus service, ordering and timestamping messages, smart contract service, solidity and EVM compatible applications. So there is your interoperability and the limits thereof. File service, small network files and configuration data. The technology is open source and the consensus algorithm has undergone independent review and machine checked for formal verification. So it's been audited, right? But we've talked about audits. I won't go way into it.

But when it comes to audits, it's like a snapshot. If you audit what my company did a year ago, well, there's been a year since then. So your audit may have some credibility, but you need kind of very constant audits on whatever is new. Maybe they don't have to audit the stuff they've already audited, but they do kind of have to audit at least after what six months, a year or something for everybody for transparency. So we can know how much things have changed. What is demonstrabably true? Well, this is what we know. HAR is operational, right? It can process large transaction volume. Fees are very predictable and HAR is required for the network transaction. That's a plus. Hashgraph consensus is technically differentiated from any other ordinary blockchain. So it is a very original idea and kind of its

own thing. Camsta in the house. Welcome in. Welcome in Camsta. So what remains unproven though cuz that is what we do know. Whether the network can attract large number of independent paying users. Whether enterprise relationships become production applications. Then whether low fees create enough H bar demand to support the token's valuation. That's the one I think everybody is concerned about if you hold it. So let's go with a current activity snapshot here. This is a 24-hour snapshot. So and things are a little bit up in DeFi and in crypto right now. So they should have better numbers than they probably had four months ago. transactions in 24 hours 471,28. I thought this was interesting, right? But active addresses in the last 24 hour 3,74. So I'm assuming if I'm understanding this data correctly that you're saying this large amount

of transaction [music] is all coming out of this small amount of active addresses. That sounds like there may be some bots to me. Uh, network fees paid about 45,593. Not a lot of money. And this is going to be I'm not going to overexlain it right now, but this number here, the network fees paid in the last 24 hours, that's going to be a subject because we go look at Block Works, which is a website that's great for data, and we look at revenue of networks. Like, you know, Hyperlid probably made $2 million today, and that's being conservative. So you're telling me H bar made less than five grand today? That's not real good for revenue. We need revenue in a blockchain because that pays the validators pays all kinds of stuff. Money buyback burns, you know, revenue burns,

treasury, like all those things are so built into how much money is coming in. Just like you in your own finances, how much money is coming in on a daily basis is very much depending on what you're capable of doing. DEX volume 1.5 million. Stable coin market capitalization 26.7 million. I don't want to uh crush you with numbers there. So, we'll move along. Nearly half a million daily transactions demonstrates the network is functional. They do not demonstrate half a million users. We saw that that was much lower. Approximately 3,700 active addresses. So, one person can control multiple addresses. and that's a whole another thing. So, half a million transactions, 3,700 active addresses, and we don't even know if those are all different people. There are certainly some of those addresses are owned by the same people. But how many

out of this number is a thousand of these addresses run by one person or conglomerate? We don't know. One application can submit transactions for many people and custodial services can combine many users into fewer addresses, right? If somebody's custodianing money and things [music] that can that can change the landscape. So, what we're saying is those numbers give us a glimpse, but they're not finite proof of anything. Nevertheless, combining transaction address fees, stable coins, liquidity, and trading volume gives us a more complete picture than a transaction count alone. So it's better than just having the transactions. Let's talk about its utility. HAR performs three central jobs. Network fees. Every Hyera transaction requires a fee paid in HAR. That creates mandatory transactional utility. That's a plus. Proof ofstake security, which we see is probably the most popular consensus out there. HAR

is staked to consensus nodes. A nodes influence is weighted by the amount of HAR staked to it. This makes control of consensus economically expensive. Node and staking compensation. Portions of the network fee support node operations, staking rewards and network administration. What HAR does not provide. HAR holders do not directly elect the Hideera Council through token weighted governance. Owning HAR is therefore different from owning a DAO governance token. So what we're trying to tell you here is that HAR is very associated. H bar is used to pay you know rewards and node operators. But HAR the token is not a DAO governance token. It does not give you voting rights to the council that really makes the decisions. HBAR's primary value proposition is network access and proof ofstake security, not shareholder rights or control of Hideera's governing organization. The low

fee paradox. So is it good or is it bad if a blockchain h is expensive to use? Is that a good thing or a bad thing? And then of course, who is it a good thing for and who is it a bad thing for? Right? So, Hideera sets transaction price in dollars and charges the equivalent amount of H bar probably just to make it simple to understand when you're using it. So, if a particular operation costs 0001 of a dollar at a har. So, the math is already done for you. I really want to keep the throwing numbers at you at a minimum. You can see them on the screen if you really wish to. So the user receives predictable dollar pricing. That's just simplicity for the user. Let's call it uh abstraction. However, an H bar, the token

becomes more expensive. The same transaction requires less H bar. So if H bar is worth more, you need less to make a dollar. That's basically what we're saying. That means usage creates mandatory HVAR demand, but it does not create a fixed amount of token consumption. We're saying that the token, they're saying that there's an explicit value that it cost and it'll fluctuate depending on the value of H bar, but it doesn't necessarily increase the amount of H bar needed. For example though, if uh the network required two H bar and then the price of two H bar went up, well then technically in value of US dollar or whatever else, you would be having to pay more. It would become more expensive, but it's the opposite. Make sure we're caught up on this chat. Shout out to all my

undergrounders. I I really respect anybody who takes at least somewhat seriously raising their crypto IQ and understanding what is going on before they just get out here and throw their money at everything. And I love this series because I really believe does a token capture does a project capture value and then make its way to a token is another way of saying does the price of the token have a good likeliness of going up. Never financial advice, just research. So transaction economic visual the following table is illustrative using three possible average transaction costs actual Hyera fee vary by service and resource use right so the more complex you're trying to do something the more it's going to cost you at a million transactions right at $100 each so at $1,000 each and at $10,000 each and you can see

01 0 you see the zero start falling off there. 100 million, same thing. 1 billion, same idea. Now, again, I don't want to just overwhelm you with numbers. So, that is there. If you want to pause your screen and you want to take a look at it, play this back because you're about to seriously dump some money into har. So, an extremely inexpensive network needs either extraordinary transaction scale, a ton of people using it, or it needs more valuable transaction types, additional resources of token demand, or some combination of all three. Low fees are not bad. That's not what we're trying to say. They are one of Hideera's strongest product advantages at first sight. they simply create a much higher adoption requirement for substantial economic capture. So what we're saying here is they really need a lot of people

to use it all the time for it to really actually capture a lot of value to then maybe make its way into har. Let's talk about what you may not know about har right fun facts if you will. So HAR becomes cheaper in token terms when its price goes up. Because fees are dollar denominated, a higher H bar price actually reduces the number of H bar required for the same operation. Council membership is not proof of application adoption. So Hideera's own council, you know, FAQ says members are not required to build applications on the network. So you could be a member of the council of HAR but you're not required to exclusively use HAR network to build your products. A company joining the council is meaningful governance participation but it is not automatically a production use case. HAR does

not use circulating supply the same way data providers do. So HAR distinguishes between released and unreleased supply. kind of different words for the same thing. Market data providers apply their own circulating supply methods, which sounds a little wishy-washy if you ask me. Means you could go to different places and get different answers or prices. I don't know if that's a great thing or not. HAR holders do not control council through token voting, right? It's not a Dow. Now, let's talk about where do HAR's fees go. So, when it does finally make revenue for the chain, like we saw it was like $4,500 for today's transactions, right? Not a lot of money. Well, first you have the user or the application. That's what's generating the fee. Then you have a USD priced fee paid in HAR. So, there's a fee

paid in HAR. [music] That fee is collected in accounts and those accounts go in three different directions. network administration and treasury, staking rewards to the stakers and node rewards to the node operators. HAR's current documentation describes a typical distribution in which approximately 80% reaches the network administration account. So it looks like the majority is going to the administration account. So with portions allocated to node and staking reward accounts exact implementation and rates can change through governance. So they can change it but they already capture 80%. So if today and I'm just trying to use the data best I can here. Let's say there was $4,000 I think it was $4,700, right? And we're not going to do the math, but just think of what 80% of that might be. So, in a 24-h hour period, you're somebody staking or

you're somebody operating a node. Well, out of that 4,500 4,700 number, well, 80% of it is going to the network administration and treasury. So, what is really left to be divided amongst how many people? Doesn't sound like it is highly profitable to run a node or stake with HAR, but we could get deeper into that as we go along. So here we go. It's just saying the same thing where the fees go. We already explained that. So ordinary unstake HAR holders do not receive direct revenue distribution. So if you stake your H bar, you have some claim in the fees, right? Because some of the rewards go to staking. But if you just hold the token, you're not really getting allocated anything. The economic connection is therefore usage of HAR or usage of the network equals HAR fees that

then turns into network operation and staking rewards, right? It's not usage equals profit automatically for people holding H bar. I hope that's super clear because that is something that is one of the critical things you'd want to know before you bought some H bar because there are plenty of other projects where the token value the capture of value some of it goes to the token staking though let's talk about staking real utility with important differences so Hideera or HAR staking has no bonding requirement no lockup time that's kind of good no slashing for messing things up or withdrawing early. I guess no minimum H bar balance and rewards based on staking periods and eligibility. The strength to this is staking connects harership to network security. But there's an extra step. You have to take your H bar and stake

it for you to really get some value. I'll tell you for a long time I did hold some H bar. As of right now I don't hold any. Haven't for quite some time since before the beginning of last bull run, right? But if I would have done my research, I would have staked it. I did not stake it because I was very busy doing other things and not raising my crypto IQ. Hints to why I believe in what I'm doing so much and why I am here with you guys tonight. Limitations though, because there is no lockup, staking does not remove HAR from liquid circulation as strong as systems requiring bonded tokens. So when you stake it doesn't remove it from what we would consider the circulating supply. Can reoccurring network fees eventually fund staking node security sustainability or

will treasury resources remain important while the network grows. So, what we're saying is, is it going to generate enough money eventually that it can afford to pay its node operators and the people staking, right? Cuz right now, it seems like the Treasury is pumping out a lot of money to try to keep things afloat while the network grows. And think about it, if they only made $4,700, I'm sure that they have responsibilities of a higher amount of money to the people staking in node validators, right? and that's coming out of the Treasury. Now, in a roundabout way, you could say, well, 80% is going to the Treasury. So, if the Treasury has to come in and make up for the lack of the pay for these guys, then why don't they just reroute the fees in a more efficient

way? That's a different question. Maybe because they believe that eventually they will be making enough money that they won't have to do that. tokconomics. You know, one of my favorite words here on the channel. So, maximum supply is 50 billion H bar. Now, if you watch this channel long enough, you know that a maximum supply, it matters, but it's not the end of the world, right? A big maximum supply, but a low maximum supply can be really important. But 50 billion sounds like a lot. Well, there's projects that have infinite. They don't have a defined. So, how do you weigh that out? I'd rather have a defined 50 billion H bar than just an infinite question mark. Current provided uh circulation is 43.8. So you could say the majority high high majority of HAR is in circulation and not

waiting to dilute the price. Percentage circulating is about 87% remaining difference is about 6.2 billion H bar which compared to 50 is not that big of a deal. So the 50 billion maximum cannot be changed without unanimous Hyera council approval which also means with Hideera Council approval the maximum could be changed. So it shouldn't be but it could be and you do with that what you will right you got to make your own decisions and hold yourself responsible for them. So a constructive interpretation here is that Har is not currently a classic lowflat token with most of its supply waiting to unlock. Nearly 88% of the maximum supply is already counted as circulating by the reference market data provider. So with the information that we're being given, the council still controls important treasury allocation. This is the risk, right?

network pricing and ecosystem funding. So, the council seems to pretty much run the ship. Released treasury tokens can create market pressure even though they are not new inflation beyond the fixed maximum supply. And the final supply assessment here is that HAR supply position is substantially more mature than tokens with only 10 to 30% circulating. But Treasury management still deserves continued monitoring. How's anybody doing out there? Is there anybody who holds HAR who is looking at their token holding differently now? You know what I'm saying? Is there anybody who has HAR in a hot or cold wallet that is now thinking, "Huh, I should probably go stake that if I'm going to continue to hold it." Or maybe you're thinking, "Why am I holding this token?" Enterprise adoption association is not usage, right? So we're talking about enterprise adoption, partnership,

stuff like that. Hideera has relationships involving global recognized organizations. Uh the WEF, I know HAR gets in there. There's a lot of uh verbiage around HAR in the WF. Its governing model offers businesses predictable cost, identifiable node operators, equal council member votes if you get on the council, published meeting minutes, so you can see everything that's said even if you're not there, term limited membership, a public open-source network, and compliance orientated service. So, they're going to be on the up and up with the regulators. that can be attractive to regulated enterprises because they have to maintain their regulation if they want to get in this space. They can't just forfeit their obligation to the regulators as a big company just because they want to deal with some crypto stuff, right? And this is the main reason why a lot

of big companies haven't gotten into crypto because the uncertainty around the regulation. We're wrapping that up here in the United States and I think that's going to clear it up for most of the world to be honest with you. And then of course the EU is doing its own thing, but don't don't forget that the America is definitely setting the precedents for most of it. The EU will probably do something ridiculous and it's probably bad verbiage shoot itself in the foot, right? The five question adoption test, right? So this is what we really want to know. Is the application live? Is it on mainet? Yes. Yes. Are customers using it? I don't know who customers are. Somebody's using it. Is the activity reoccurring? It seems to be, even if it's kind of low. Are meaningful fees being paid without

temporary subsidies? I don't think so. I think that they are having to subsidize a lot of your staking and your node validators. If we cannot answer those questions, the announcement is evidence of interest, not evidence of adoption. But is it secure? Let's check out this chat. Shrugahart, Camsta, Melissa with those custom emojis. Is HAR actually secure and decentralized? Well, let's talk about its strengths when it comes to security. Things that it does well. Hashgraph Consensus is um a synchronized bisotine fault tolerant. That's a lot to soak in. I I I understand that. We we'll get more to that later. The algorithm has machine checked formal verification. Core technology is open- source. Consensus nodes are operated geographically and organizationally distinct council members, meaning it's not all concentrated in one place. Not like all the nodes are in Norway or something

like that. And if I don't know, Norway was to lose power, har would go down. They're all over the world. Kind of like Bitcoin. So council members have equal governance votes. Decentralization limitation. Hideera's consensus node remains permissioned and operated by approved council members. The public can use the network and operate mirror nodes, but ordinary users cannot presently join mainet consensus on the same permissionless basis as networks such as Ethereum. So this is kind of a blow to decentralization which H bar if you follow I don't want to say follow the money if you follow the reasoning and understanding and who they're associated with and stuff like that you could see that there's probably a reason why it operates that way. Historical security lesson here in 2023 an attacker exploited Hideera smart contract service and stole assets from several decentralized

exchange related accounts. Hideera restricted proxy access and coordinated a code update. The response demonstrated two things simultaneously. One, central coordination can stop damage and deliver a rapid fix. In some situations, you might think that's a good thing. If you're a code is law kind of person, maybe you don't think that's a good thing. Relatively small governing groups possess substantial intervention authority. So the amount of people who have to agree to do something seems to be concentrated. That trade-off should be acknowledged rather than automatically described as an entirely good or bad thing. We try to stay very neutral here. This is another part of the token autopsy that I think is highly valuable and that is competitive mode. Its ability to win out against its uh competition, right? Competitors transaction speed is very strong. predictable cost as we've gone over

very strong finality, strong energy efficiency for those who love that narrative. Very strong. It doesn't use a ton of electricity. So, this is where it starts to fall away from the strong category. Enterprise relationships, all right, is uh differentiated. EVM compatibility is useful but not widely available. DeFi liquidity uh relatively limited. Stable coin liquidity relatively limited. permissionless validation not yet archived and consumer network effect weaker than leading ecosystem. So we kind of like all right cool it's strong in all these things up here but how much do these things matter where it is not as strong I think they matter quite a bit so who is competition H bar who is H bar competing against well Salana and high fee perform or high performance layer ones not high fee I don't know where I got that from Salana and

high performance layer 1's are H bar's main competitor because HAR's main claim to fame here is that they're inexpensive and they're really fast and they could scale easily because of that. Well, Salana kind of doing the same thing and any other high performance layer 1 is kind of doing the same thing. So, why would you choose HAR over its competitors compete for inexpensive consumer applications, payments, and trading high volume activity? Ethereum layer 2 networks of course very much fix that problem on Ethereum. So, that would make them competitors to HAR. They compete through EVM compatibility. Developer familiarity, right, to the developer to build on and access to Ethereum liquidity. Liquidity is a big deal. We already saw up here that liquidity cannot be so strong, right? Can be very limited. So, its competitors have that on them. Stellar and

XRP ledgers. Why I brought this up for your hardcore XRP people compete for payments, right? asset issuance and institutional settlement there. X uh XRP, of course, that's a big claim to fame. XLM or Stellar, that's a big claim to fame, but HAR is in the mix and they do have some good connections with like the WF and bigger institutional things. Avalanche competes through customizable institutional networks and EVM infrastructure. If you remember that from our Avalanche token autopsy, private and permission ledger. So some enterprises may prefer systems they can control completely rather than using public harbased networks and that's what you get when you make a customizable institutional network on avalanche. So our conclusion about their ability to be picked over their competitors right for liquidity use case hashgraph technology is differentiated right predictable fee and council governance are also

differentiated like the way that they work is different but differentiated technology is not the same as an unreplaceable network. So just because they do something differently than the way most networks would do it doesn't automatically mean that they win the race of liquidity and money and settlement, right? And people choosing to use them just because they're different doesn't mean that they win that argument. H bar still need stronger liquidity for sure. Users and production applications to turn technical differentiations into economic mo or an a superiority over their comp competitors. Right? Evidence that would prove a bull case here. Right? So, if you do hold some H bar and you're like, uh, I'm not real sure what I should do now. Let's put the evidence out there because we try to stay neutral and give you both good and bad.

Evidence that would prove a bull case, right, is sustained growth in fee paying activity accounts. Rising fees without relying on a small number of applications, aka we really need more applications on HAR. uh that actually bring meaningful fees. Stable coin liquidity expanding across multiple assets because they have a little bit of a liquidity issue. Increasing DEX decentralized exchange volume and DeFi deposits. Enterprise applications moving from pilot to production. More activity from independent developers and users. measurable progress towards permissionless consensus nodes and network fees covering more than security and operating burden. They need more money through fee revenue, right? Or the treasury which is being funded by a lot of the fees, but how much of that is turning around and going to cover what they're not being able to generate for their obligations towards people staking in validators. The

weaker evidence, okay, the bearish evidence here is another council or strategic partner announcement. That's not really going to do anything for HAR. The token cumulative transaction totals without user data test net demonstrations, grants awarded without resulting in usage. They can do all the grants, they can get all the grants, they can give all the grants. If nobody really winds up with a meaningful application on the network to generate fees for revenue for the network and the project, then doesn't really matter about the grants, right? Price appreciation without improving network economies and future use uh announcements without launch dates or mainet evidence. right here. A lot of what I'm thinking is H bar really is only fit for like institutions and stuff like that. What besides institutional usage? Who's going to use HAR? Like why wouldn't you use Bass or

a layer two on Ethereum? Why wouldn't you use Salana? Why wouldn't you use Avalanche? Right? Avalanche you can make a customizable, you know, smart contract, right? So, why would you want to use HAR? Now, we will get down to the daily crypto IQ scorecard in just a minute. Let's take a breath of fresh air here. Let's take a look at har over start with the last month because that's probably the meaningful increase that we've been getting here in crypto. Really, it's probably the last two weeks. Why is this page frozen? Yeah, I'm done waiting. Let's go. So, everybody right now, one through 10, how strong do you think HAR token is? I want to I want to see some things in the chat. All right, this is just your own personal opinion. Nobody's going to hold you to it,

but I'd really like to hear what people have to say. Hopefully, you followed with that token autopsy. Hopefully, you're getting used to these token autopsies and it's really helping you increase your ability to understand what we're even looking at when we look at a token. What does it mean and how does it increase in value? And of course, all of them are a little bit different. Let's go to the monthly. See if I get some interaction here. So on the monthly looks like you had a low of about 064 like 6 and a half cents and a high of let's see if we can hit that. Sometimes it's a spike. There we go. 086. So about a twocent differentiation over the last month. Of course, seven days we were in the last seven days about 7 cents and about

high is where it is now. Very close to the 7-day high. It's about 8 cents. It's about a penny. And the last 24 hours has been a little choppy. Up, down, up. I guess you call that down and back up. Let's go back to that MAX chart. And of course, let's see what kind of uh categories they put it in. Layer one, made in US. And then it is a DAG, which is directed a cyclical graph. Uh we hear DAG a good bit. Most people probably don't know what it is. Anybody Anybody want to give me a one through 10 like rating on how strong they feel the HAR token is to increase in value over this bull market? Other than that, what have what has everybody been looking at today? I kind of open it up for a

minute here. All right, let's go look at the scorecard. So, here we have a breakdown for each category, right? Let's see. I should have a much easier reference here. There we go. All right. So, I know what I want to do here. So, these are the different categories, right? There's seven categories. Real utility and adoption. Well, they gave it a 13 out of 20 here. And there's a whole explanation for this. If you follow me over on Twitter, cryptoron, blue check mark, my face in the thumbnail ground crypto, because underground crypto is taken. So, it's unerscore ground crypto. follow me over there and I post all of this information for all of them. They will be in the Discord as I set that up. I've been very busy. But they will all be there, right? So, we're not going

to go through all that. We're just going to read the score. Token value capture got a 7 out of 20, which is probably the most important thing that we're talking about here. So, I would say it's a very low score. Not real great for token capture. Uh tokconomics and supply got an 11 out of 15. Again, if you want to know why, all this will be posted over on Twitter. Competitive mode, its ability to stack up against its competitors only at 10 out of 15. It's kind of in the middle. It's neither real great or bad. Melissa says, "I'd give it a six." And Elozo said, "Zeek. Not sure it can have potential to go up." I'm with you on that, Melissa. That's kind of what I'm thinking as well is that as we've done this whole token autopsy

for HAR, its ability to get money into the market cap of HAR isn't real great. Which means HAR really only goes up from speculation of retail or institutions just buying it. It's not necessarily taking value from what the company or the project has built as an ecosystem isn't producing value for the coin [music] which is a hard sell for me to speculate on. So security and decentralization a 7 out of 10. Uh catalyst for execution 7 out of 10. It's not a horrible score. Risk and unanswered question got a five out of 10. So, it seems like there's a lot of unanswered questions and a total score is 60 out of 100, right? The final verdict, speculative kind of at best. And I could read all of that, but I'm going to leave that for my Twitter post if

you want to check that out. What I really wanted to get to here, though, is our different uh leaderboard, right? All right. So, I like to do a counterargument for like everything we just said because I think it gives us the cleanest, fairest evaluation because there's some people out there who probably love H bar and they watch this and they were like, "What?" But all of these things, but X, Y, and Z could happen. All right, so let's talk about that. The best bullish argument here, revenue may be the wrong short-term measurement for H bar. It's kind of where we flip it all on its head and give you some food for thought. The purpose of extremely low fees is to attract applications that cannot function when uh each event costs several cents or dollars. Right? Enterprise identity, supply

chain records, payments, artificial intelligence verification, and connected devices may generate enormous volume while still requiring predictable costs. HAR also secures the network. Its value does not have to come exclusively from the current fee revenue. If Hyera becomes a trusted settlement and verification layer for global businesses, that's a lot of money globally. Today's feed totals could severely underestimate the future economic importance. So again, we're saying it needs a ton of adoption and a ton of people using it. What did the bulls get right here? Well, cheap, predictable transactions are genuine product advantage over its competitors. HAR has mandatory network utility. Hashgraph is technically differentiated, meaning it's different from kind of every other blockchain and network the way that it runs. Council governance may be preferable for regulated enterprise users and enterprise adoption can develop more slowly than retail speculation. What

critics get right. So now we go the other extreme. Partnerships are regular regularly presented more predominantly than fee revenue. So a lot of their presentation HAR as a project is look who we're associated with, look who we're partnership, look whose attention we have. And critics are kind of like, yeah, that's cool, but like are you making any money? Is there any money here? Transaction count can obscure limited user diversity. So just knowing how many transactions go on in a day, a month, a year, whatever, doesn't necessarily tell us if anything all that meaningful is going on by real users. Especially low fees require extraordinary activity to create meaningful economic capture. Permissionless consensus remains the future objective and they're not there yet. HAR presents valuation depends on heavily upon future adoption. Right? Present valuation is really about what it could

do, not what it is doing, which is a problem for me personally, but everybody speculates differently. Facts that could could invalidate tonight's conclusion. A sustained multi-quarter increase. Basically, what we're saying is look for this what I'm about to read. What what I'm saying is look for this thing and if it starts to be seen, that could maybe change how we feel about it. a sustained multi-quarter increase in independent activity, users, stable coin liquidity, application diversity, and network fees combined with progress towards permissionless nodes because they don't necessarily have a lot of that would justify materially raising HAR score. And then we have a final verdict as well that will very much be in that Twitter post that I'm going to be making. Come over here, Underground Crypto. Crypto Ron with the blue check mark, right? Please follow me. If

you're watching this, please subscribe, hit that like button, and consider joining a membership so that you can support all that we do. They start at $3. You're not asking a lot, right? Other than that, let's go take a look at our block works. Top gainers, top losers of the day. So, top gainer of the day, 21 and a half% worldcoin. Uh, World Coin is an interesting project. I was going to go on a tangent there. I'm not going to do it. Uh, build on 20%. Injective. A lot of people have been excited about Injective. I I saw a lot of excitement on the Lifer stream uh the last couple of days about Injective. Yes, it's pumping, but it also has some good prospects. I look forward to an Injective token autopsy. There's so many coins. Now that we've started

this series, I'm like, whoa, this is heavy value. Now, it may feel a little bit heavy as you follow along with me. That's why I like to give you a scoreboard. That's why I like to give you a score for each token and a conclusion of why we went where. I hope you guys do catch those of course over on Twitter and then they will all be in our free discord [music] which is linked down in the chat. Of course, all links are in the description as well. Aer Drrome, big fan of Aer Drrome liquidity hub for the base ecosystem uh comparatively to something like uh Deepbook being a liquidity hub for uh Aikido Caspa getting a little bit of a pump. I was happy to see that. Of course, pumpf fun getting a little bit of pump, which

is interesting that pump.f fun's coin is getting a little bit of pump because activity on pump.f fun is dismal right now. So, this pump is I don't think coming related to activity on pumpf fun. Every all the memecoin activity is over on Robin Hood chain right now. But Caspa uh being up 14% is exciting to me. And what I was going to say is that the actual pumpf fun token is probably mostly retail buying it as it's probably going to go up as this bull run goes on. Blues guy says the price of success is hard work, dedication to the job at hand, and determination that whether we win or lose, we will have applied the best of ourselves to the task at hand. And he's absolutely right. You know, I I was talking to somebody the other day

and I said, you know, it's a really good thing that I didn't make my YouTube channel because I wanted to blow up on YouTube and make all this money. Like, that wasn't my motivation because would have quit at it a long time ago because it's a hard niche. We have the bare market. Bare market is brutal for attention and people who just care about crypto in general is brutal. But we still stuck with it. And you know what? We found a lot of really good people. I'm a quality over quantity kind of person. I'd rather have a smaller amount of very high quality people who are with it and about what we're doing and care and tune in and are active than a a bunch a bunch of people coming through coming through coming through saying all kinds of

random stuff getting us off topic. Never never do a membership. Never come to the Discord. Never do much of anything for the actual group. That's what you made me think of, right? And then of course our top losers of the day, Arbitum, Dash, Pawns, Just Pith Network, Jupiter, and Jasmcoin. Jasmcoin just can't catch a break. Like it's up 10%, down 11. You know, it's kind of brutal on a daily basis. Again, I always say I just think at this point to me, it's just [music] funny. One of my worst purchases ever was Jasmi. And uh not sure what I was thinking when I did it. Now, luckily I do have good [music] purchases, right? But um yeah, I don't about $1,000 of Jasmine. Not at the very top, right? Not at the very top, but somewhat close to it.

Depending on perspective, close is up for debate. Arbitra is down 10%. On a day where your worst loser of the day is only down 10%, it's pretty good. Now, when we go to analytics, right, I do want to look at chain revenue. Because more and more it's being revealed to me how important [music] chain revenue is to a project. Because how can you take a good amount of monies, a sustainably decent amount of money and put it into your coin associated with your project if you don't actually ever make any money. That came that came out a little jumbled up. Hopefully you understood what I meant. So, let's take a look. See what our recent data is for. All right, last data is the six. So, yesterday we're only a day behind. And this is what I'm talking about.

We just said that HAR today made only about 4,5. Let's just go ahead and assume, let's just assume that that's somewhere roughly what they normally make and then the bare market, you know, four or five months ago was even worse. If we can even say we're in a in a bull market right now, that's a totally different debate. We really need to hang out a little higher than 83,000 for me to be like 100% bull market is here. Compared to that H bar, I was really looking forward to showing you guys this. Compared to H bars, like $4,700 in revenue for the last 24 hours. I know we're a day off, so this was yesterday, but it's all you'll see that they're all very relative. Robin Hood made $2.6 million. Canton Network made $1.6 million. Hyper Hyperlquid made $1.2

million. B&B chain made a million. Salana made $766,000. And then it's like Thor Chain made six grand. Avalanche made $3,800. Manad at least made 14,000. You see what I'm saying? So that is why chain revenue is so important because without chain revenue, how much money can you get to validators? How much money do you have expendable for other things? You don't. And on the 4th of September, Robin Hood made $8.2 million of chain revenue. Now, chain revenue can come from multiple different things, but I would say it's probably fair that most of it comes from the fee associated with a network transaction. Deep breath. How's everybody doing tonight? We have a little bit of time to kill. We are going to play Canara tonight. That is going to be our game of the night. Hopefully, a lot of you

guys will come over to the gaming stream. separating the stream into the educational stream and then the gaming stream instead of putting them in one I think is uh gonna be a really good thing long term because some audience might be far more interested in this and not come to the gaming and vice versa. Some might only show up for the gaming stream and never come for any of this because it makes their head pound and they can't handle it. That's okay. Can't make people do nothing, right? And nobody owes me a thing. It's a good way to live. If I say let's do a little bit of Twitter doomcroll. Now we are doom scrolling Twitter so I don't know what we're going to see but I mean most things that I follow are crypto gaming pumpf fun stuff

crypto influencer stuff like that right. So here's Kendra. Kindra has a new hood explorer and burn tracker. So I thought this was interesting. More implementation and things being shipped on Kindra. It's pretty awesome. Uh, Cambria community fishing contest event. I see a lot of people fishing when I play this game. How many people liked Cambria when we went over it? I love the idea of Cambria. Like the way that it's set up and you do a dungeon run, but you got to start from zero every time, but then it's random. I don't really love the random thing, but I think the randomness kind of keeps somebody from like just gaming the system, if you will, or just dominating through the fact that they know where everything is and how everything's going to be. All right, there's the man himself,

the Crypto Lifer. Got to like that post. So he's talking about 4,000 BTC just got white hated for some reason I read that as white chatted out of liquid. So 320 million note says contact us on chain. Whoops. You know you messed up when they leave a note like hey we got your money. Give us a call. We'd like to talk to you about how we were so easily able to get your money. That's a weird conversation. Everything is paused. Bridges is dead and LBTC is locked down. Side chains keep learning the hard way. Are they? Are they though? We hope that they're learning. Bitcoin based layers stay undefeated. That's actually a really good point. Yakaman. Yakaman is one that we are certainly looking forward to. Let's see. It says, "Yakaman hunting is not what you think. You don't

catch the monsters. You negotiate with them. And every wild Yakaman has a personality problem. Is that what we're doing? That's going to be hilarious, right? Some of them want to be one over. Some are greedy, literally make you pay before it joins you, and some are angry and just beat you up and take off. This is interesting. I'm looking forward to Yakaman coming out. We're definitely going to do probably like a day of uh tutorial of Yakaman. It's going to be a lot of fun. So, assign a Yakaman to a ground. It triggers encounter. It be it comes back. Dang it. I wasn't done reading it. I didn't realize it was a video. It comes back with a catch or nothing. Okay. Okay. So, you're going to be able to send the Yakaman out to do things. >> Okay.

So, you have three different types. You'll have angry, greedy, and affectionate. >> Ah, that's so interesting. I can spend a lot of time on that. I see this game looking like it's getting ready to ship. Mint goes live in an hour on OpenC for whatever this is. That might be worth knowing about here. I don't like to click a ton of links, but this is the onchain connection. And it says in an hour, but who knows when this was actually posted. One Oh, at 1:00 p.m. It's been many hours since then. There might be some mints left on this. And this is Canara. This is the game that I was going to be showing off tonight and doing a tutorial of. It's very interesting. I have really not played or watched a lot of the um gameplay. I just

have seen a lot of it and they seem to be not associated with but in the same kind of communities as Kindra. And I think that's probably all I got for you tonight. I would say it was a very successful token autopsy. Um, I definitely I learned a lot. So, I know it sounds braggadocious, but it's true. When I learn a lot on a stream, I know everybody should have learned a lot at least specifically about HAR, if not some broader concepts about what makes a token worth speculating on, aka purchasing. What would we look for? Not me telling you to buy it. And uh from there, I got to say thank you guys for being here. There'll be another token autopsy tomorrow night. You can join that free Discord link in the bottom if you want to know

before the stream what it is or just subscribe to the channel and you will see when I post it what we will be going over. I'll keep it somewhat secretive, right, until tomorrow what we're going to be going over. Build up some excitement if you will. But other than that, about 10:15, 10:20, 10:30, uh, we're going to be starting that gaming stream probably about 10:20, about 10 minutes early there. We will start that gaming stream and we will do kind of a beginners's guide tutorial to Canara. It's going to be a lot of fun if you ask me. Melissa says, "I learned something about HAR." Hey, my job is there for success. If one person learned something about H bar, then I think I did a good job. And look forward to that full breakdown of the token autopsy

in all the categories and why it scored what it scored over on Twitter. Till then, Underground Crypto out. Have a good night everyone. I'll catch you on the next stream. We're not done yet. Canara coming soon.