The Rise and Fall of DePIN Projects: From Hype to Bubble

The Web3 world seems to be repeating similar patterns. Following Filecoin mining machines and GameFi, the concept of DePIN (Decentralized Physical Infrastructure Network) has once again sparked heated discussions in the industry. The slogan for this round is even more grand: "Everything can be DePIN", where activities ranging from charging, communication to transportation, and even various behaviors in daily life are given the possibility of "mining".

However, when we take a closer look at these projects, we uncover a disturbing fact: most of the DePIN device suppliers come from Huaqiangbei in Shenzhen, and the prices of these devices are often 30 to 50 times the wholesale price. Many investors not only lost their hardware investments but also face the dilemma of continuously declining token values. This phenomenon raises the question of whether DePIN truly represents an innovation in infrastructure or if it is merely a repetition of another hardware scam.

Project Case Analysis

Helium: From Scarcity to Abundance

Helium was once a star project in the DePIN field, building a decentralized LoRaWAN network and collaborating with major telecom companies to launch mobile communication services. However, the story of its devices has become a typical case of "retail investor harvesting." The hotspot miners, which were once speculated to $2500 each, have now turned into a nightmare for investors, especially after the nodes in China were shut down, leading to a total collapse.

Hivemapper: High-priced hardware, sluggish returns

The $549 dashcam launched by Hivemapper promises users token rewards for uploading geographic data. However, the high hardware price stands in stark contrast to the lackluster performance of the tokens, making the break-even period seem distant. The practical implementation of the project and the quality of the data have also come under scrutiny.

Jambo: The Web3 Mobile Myth in the African Market

The $99 Web3 phone launched by Jambo in the African market has seen considerable sales, but the sustainability of its underlying economic model and ecosystem remains in doubt. The liquidity and value of the token have yet to be validated by the market, and the ecosystem of the phone itself is difficult to support long-term usage demands.

Ordz Game: The Web3 version of the retro game console

The BitBoy handheld console launched by Ordz Game, although the pre-sale was hot, essentially still replicates the GameFi mining model. The gaming experience remains at a retro level, lacking innovation, and its token ORDG (later changed to GAMES) also faces liquidity and value issues.

TON phone: expensive "senior phone"

Although the TON phone was launched with the hype of Telegram and TON, its price of $500 has earned it the评价 of having an "old phone feel." The limited hardware configuration and lack of innovative user experience make it difficult for this phone to match its price and expectations.

Starpower: The Mysterious Smart Plug

The smart socket priced at $100 is sold purely on "storytelling" without clear technical and ecological incentives. This model is similar to past mining machine futures scams.

The Essence and Future of DePIN

DePIN is essentially an extension of the Web3 economic incentive model into the real world. Theoretically, it can decentralize real-world infrastructure, build large-scale user networks, and achieve fair incentives and transparent governance through token design. However, most DePIN projects at the current stage rely on "selling hardware" to harvest retail investors, rather than genuinely building the network.

Truly successful DePIN projects require strong supply and demand model design, transparent and continuous incentive mechanisms, and an in-depth understanding of the hardware and infrastructure sectors. Currently, most projects are not solving real problems, but rather packaging concepts to harvest users. When hardware becomes a tool for speculation and tokens turn into worthless "digital lottery tickets," DePIN has devolved into yet another round of the Web3 Ponzi cycle.

In the future, we look forward to seeing DePIN projects that do not rely on hardware sales or story marketing, but are based on real usage and revenue. Only then can DePIN truly realize its promised innovation and value.