The IOTA Foundation has published the latest progress report. This raises as many questions for experts as it provides answers. Meanwhile, the altcoin IOTA is sliding in the overall market.
IOTA has long become a matter of faith for many German investors. Fans say that here is a maturing project that still has a rosy future ahead of it as a native currency in the Internet of Things (IoT). The critics say that the IOTA Foundation is constantly tripping itself up and that the cryptocurrency IOTA will never again reach its historic highs of more than 5 US dollars. The latest May progress report from the IOTA Foundation provides fodder for both camps. We provide you with an overview:
- IOTA re-celebrates the launch of Chrysalis. Highlights the good rate of irrevocable transfers from IOTA to the new Tanglenet. A look at the data here shows: As of today, not even a third of all IOTA has been migrated. After years of preparation, is this really a success?
- Work on Coordicide and thus a decentralized Tanglenet continues. One key point here is the software for network points (nodes). A second testnet for IOTA 2.0 is taking longer and longer to come. The IOTA Foundation no longer wants to publish time schedules. Investors are thus in the dark as to whether IOTA 2.0 aka Coordicide will really arrive in 2021 as actually promised.
- Smart contracts are also the central key to complex appropriations for IOTA, whether for IoT or DeFi. Now IOTA is supposed to integrate the proven Ethereum Virtual Machine (EVM) for smart contracts. But do we really want to introduce smart contracts under IOTA 1.5 with a central coordinator that just does not guarantee incorruptibility?
- Firefly as the new official wallet for IOTA is a success – but still only available in the desktop version and not compatible with the popular Ledger Nano hardware wallets. The IOTA Foundation says it is working on these challenges.
- IOTA Identity – nothing new. The project is stuck in the beta phase and is thus far from the much-vaunted “ready for practice.”
- Three new members register on the IOTA Experience Teams in May. These X-Teams are intended to constructively involve external parties in content and technology development work at IOTA.
- Also exciting: burning issues like the promised “colored tokens” are no longer even mentioned. The important IOTA Oracles are also not worth a word in the May progress report.
Anyone who takes the Do Your Own Research (DYOR) principle seriously when it comes to IOTA will hardly be thrilled by this latest document from the foundation. Investors should also look at the bitter dispute about the “unclaimed tokens” at IOTA in addition to the technological issues, because considerable risks are hidden here.
Conclusion: IOTA as an investment?
A sober look at the price curve is usually a good and neutral indicator of where a cryptocurrency currently stands. IOTA posted plus in 2021 with Chrysalis behind it, but is now giving back price gains. IOTA has once again fallen out of the TOP 30 most capitalized cryptocurrencies and thus does not rank on an international scale where it would belong according to its own claims on par with Ethereum (ETH) or Cardano (ADA). Whether IOTA can maintain the new momentum after the change of leadership in the foundation and the technological progress by Chrysalis unfortunately seems questionable.
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