The total number of Roam devices currently stands at approximately 1.21 million, ranking first in the world. What is the “magic” behind this rapid growth?
Author: Frank, PANews
On January 14, Solana’s official Twitter account pinned a recommendation for a DePIN project called Roam, and said that Roam is working to unify over a million WiFi hotspots on Solana’s network. However, there have not been many introductions to Roam in the cryptocurrency space before.
According to DePINscan data, the total number of Roam devices currently stands at about 1.21 million, ranking first in the world. What is the “magic” behind this rapid growth? Can its core model – “low-threshold router mining + token incentives” – really support the global expansion of roaming WiFi?
The low-threshold router+ token is expected to attract millions of nodes
Roam was founded in 2021. To date, it has completed two rounds of funding totaling $7 million (a $2 million seed round and a $5 million strategic round). As a DePIN project, compared to large financing companies such as IoTeX, io.net or Helium, Roam can be considered “spending little money to achieve big things” in terms of funding volume. The reason for this effect may be related to Roam’s business model.
Roam is a decentralized WiFi network operator, whose main goal is to build a global decentralized WiFi roaming network. The narrative is relatively simple, users can contribute their WiFi to join the Roam network, and if other users connect to the WiFi network, the user who contributed the network can get the corresponding reward points. These reward points can be exchanged for ROAM tokens.
In research, PANews found that in July 2024, the number of users and devices registered with Roam was just over 400,000. In just 7 months, the number of devices increased by 800,000 to 1.21 million. According to DePINscan data, the number of its devices ranked first in the world, and the total number of registered users reached 2.08 million.
In addition to adding personal routers to the Roam network, Roam Economy is also designing a self-powered device for WiFi miners. Users can purchase official Roam routers and receive additional rewards on top of the basic rewards and NFTs, such as 60 bonus points per day, or up to 150 points when the user logs in. Currently, Roam has launched two routers: the MAX30 ($199) and MAX60 ($499), but starting from the introduction, only MAX60 users can enjoy the bonus points rewards. In addition to the bonus point rewards and NFTs, these two routers don’t seem to have any special innovations in performance. A device with the same performance as the MAX30 produced by a domestic technology brand costs less than 300 yuan on average, a price difference of more than 5 times.
In this narrative, the reason why Roam can quickly attract more than a million users may be because routers are the most popular home appliances at present, and there are no special performance requirements or excessive settings, so the threshold for participation is relatively low.
When PANews observed the distribution of Roam’s network, it found that the density of Roam devices is highest in South Korea, covering almost the entire region. It is also relatively dense in China, Southeast Asia, Europe and other regions. Device density in the United States is not high. Judging from these distributions, the main coverage areas are also concentrated in regions with advanced networks, while device coverage in underdeveloped regions such as Africa is very low. Currently, Roam service covers more than 140 countries.
Can mining with high-quality routers provide excess returns?
According to the official introduction, the total number of ROAM tokens is 1 billion, 400 million will be generated through the TGE event, and the remaining 600 million will be mined later. Of the 400 million generated by TGE, 280 million will be used for sales and 120 million will be reserved for the team. In September 2024, the official announced that 20 million tokens would be distributed as an airdrop to MAX60, MAX30, and NFT owners and former Roam OG miners during the TGE.
As of January 15, the number of points issued by Roam was about 2.139 billion, but there is no exact conversion ratio of points to ROAM tokens, and the exact time of TGE has not been announced.
However, we can make some simple estimates. The current market cap of IOTX tokens for another DePIN project that has already issued tokens and raised $85 million is about $330 million, and the market cap of Helium token HNT is about $867 million. If the initial market value of ROAM tokens after issuance can reach the level of IOTX’s market capitalization, the average price of each ROAM token will be about $0.825, and the air distribution volume will be about $16.5 million. Currently, there are 2.09 million officially registered users, the average points per user is about 1,023, and the average amount each user can get is about $7.8. Assuming that half of the 1.21 million nodes are users who purchased equipment, the average airdrop each of the 600,000 users who purchased equipment could receive is about $27.
Assuming that the administrator uses all 280 million tokens for sale in the TGE token to redeem points, based on the current points issuance, the points-to-token exchange ratio is about 7.6:1. If its market capitalization reaches the level of IOTX, each pip would be worth about $0.1. Depending on the points awarded to users who purchase the device, purchasing the device can receive a reward of 3,000 points, in addition to 60 points daily for 100 days of operation. If your score reaches 9,000 points, your total income could reach $900. However, this situation is the most ideal case, because the above calculation method estimates two extremes, but it should also have a certain reference significance. The average airdrop size can range between $7.8 and $900. For users who purchase equipment, if they only get a return of $900, plus 100 days, this input-to-output ratio does not seem high.
For Roam officials, if half of the devices were custom routers purchased by users, that portion of revenue could amount to at least $127 million. Even if only a tenth of the devices were dedicated routers, that portion of revenue could amount to at least $25.47 million. From this perspective, Roam’s hardware revenue could make it the biggest winner in this airdrop story.
In addition to decentralized WiFi and premium tethering, Roam has also launched an eSIM service for its international roaming network. According to the official introduction, Roam’s eSIM service has covered 160 countries and regions. This eSIM is similar to the international roaming network service launched by the telecom operators we know. From a pricing standpoint, the price of 1GB ranges from $1.19 to $1.99. The price of this service is higher than the roaming service price of telecom operators in mainland China.
Touring has become a new force that cannot be ignored in DePIN’s trajectory. Compared to many projects that have raised hundreds of millions of dollars, ROM achieved the effect of “spending little money to do big things” with just $7 million. However, in terms of current coverage areas, Roam’s coverage areas are all areas with well-developed networks. The demand for WiFi in these areas does not appear to be a strict one. The device’s current accessibility stems primarily from the expectation of token incentives. For Roam officials, what kind of planning will be undertaken for the next premium economy may be the biggest challenge. If the effect of the airdrop is not as expected, a large number of shutdowns may be experienced. In addition, can the current number of nodes be maintained after the airdrop, and is there an incentive to attract more nodes to arrive? This is also a problem that Roam cannot ignore.
Author:Frank
This content is intended only to provide market information and does not constitute investment advice.