Is IOTA (MIOTA) a scam or another poorly rolled out startup?



Apr 2017
What's going on with IOTA?.... (now "MIOTA" apparently). IOTA launched on Bitfinex this week, Tuesday, trading around the $0.55-0.66 range during the first day but also opened with just under a $2 billion dollar market cap. By day two, Wednesday, the price was sitting around $0.53 and had lost some of its market cap. By the morning of day three, Thursday, was showing a bizarre price that looked more like one of Einstein's equations, while the Coin Cap app showed IOTA's value at $0.00000060. By the end of the day it was sitting around $0.00000032, rendering it worthless. Additionally, showed that the circulating coin supply numbered in the trillions, a stark contrast to its initial circulating amount.

This morning, Friday, is showing the circulating coin amount just under 3 billion, and IOTA's price at around $0.38, a market cap just over $1 billion, and a name change to MIOTA, but keeping the same coin call name IOTA.

These bizarre and rapid changes beg the following questions:
  1. Is IOTA or MIOTA a scam?
  2. Was this move a way for them to gain fast liquidity, somewhat like (although very different from) what ZCash did to get started?
  3. Were these merely glitches that came as a result from the DDOS attacks Bitfinex underwent?
  4. Is IOTA a good long term investment or will it collapse quickly?
Time will tell the answers to these questions but for now it's clear that IOTA is having a bizarre start.


Site Admin
Apr 2017
I've been researching IOTA, and I like the premise of what they're about, although I have no inclination or clue if they will ever result in a viable blockchain solution for IoT (Internet-of-Things). IOTA is a cryptocurrency for a blockchain called the Tangle, which is intended to be the cryptocurrency for the Internet-of-Things.
I'm all for IoT getting a blockchain, but I've always been equally skeptical of IoT because of how much access companies/governments have to this data. We are practically giving away all of our privacy in exchange for a convenience that is arguably good or bad, dependent on your perspective.

Here is the June 4 announcement of IOTA trading on BitFinex:
On Tuesday, June 13, we will be adding support for IOTA (IOT) exchange trading through IOT/USD and IOT/BTC pairs. Margin trading for IOT pairs will be enabled in the coming days as the order book develops suitable liquidity.

What is IOTA (IOT)?
IOTA is the first distributed ledger protocol that goes 'beyond blockchain' through its core invention 'Tangle'. The IOTA Tangle is a Directed Acyclic Graph which has no fees on transactions and no fixed limit on how many transactions can be confirmed per second in the network; instead, the throughput grows in conjunction with activity in the network; i.e., the more activity, the faster the network. Unlike typical blockchain architecture, in IOTA there is no separation of users and validators; rather, validation is an intrinsic property of using the ledger, thus avoiding centralization.

Bitfinex and IOTA
Bitfinex has followed IOTA since its earliest stages of development and supports the project’s innovative approach toward a blockless distributed ledger. We believe the underlying technology can lead to a new ecosystem of applications built upon this decentralized and self-regulating peer-to-peer network.
When it comes to these ICO's, I purposely stay as far away from them as possible, and I don't bother looking at them until after a few months have gone by...

IOTA has been trading for 5 days. Let's take a look at the candlesticks since then:


It seems to have found support at .40 USD, which isn't too bad considering it had to find a floor somewhere after that initial spike that always happens with these ICO's.

All that said, I do not think IOTA is a scam. It's a brand new cryptocurrency that's joining a crowded cryptocurrency marketplace. It's an ICO, it has no history, and it's going to take a multi-year long-term approach to ever know if it will have any value.

ICO's are always very risky. IoT has huge privacy concerns. Personally speaking, I am not a fan of ICO's and I'm very hesitant with IoT, so it's not something I will ever invest in. But I am interested in watching and understanding how a cryptocurrency for the IoT can thrive and survive.

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