IOTA - Is It A Huge Scam Or Actually The Future?
I´ve taken a closer look at IOTA the last days, which lead to the question whether it´s a huge Scam or really the Future of the Internet of Things. Will we look at a big exit scam anytime soon or rather see us all pay with IOTA online on a daily basis? But Let´s take a look on the facts that made me question or better said reevaluate the project.
PRO IOTA - It Might Be The Future
A simple google search will make you aware of IOTA´s famous partnerships within a few seconds already. To be precise we are talking about Microsoft, Cisco Systems, Samsung, Volkswagen, and Fujitsu who signed up for a demo test on the tangle technology, which is claimed to be superior to the Blockchain.
Besides that many might have seen the following comparison already, which compares Bitcoin and the Blockchain with IOTA and the Tangle Technology. It claims to enable 0 fee Payments at all times as all users are validators themselves instead of just a few miners as it´s the case on the Blockchain.
IOTA further claims that its scalability is unlimited, which would mean that in theory millions of transactions could be processed in future as long as enough users are tied up to the tangle network. That being said it definitely sounds superior to the Blockchain and Bitcoin in particular.
CONTRA IOTA - Is It Possibly All Just A Scam?
While I scrolled through Twitter and other forums online I´ve found many complains that the IOTA Wallet isn´t working, coins keep to disappear and transactions don´t get processed. Overall you get the impression quite fast that the tangle seems to be broken or even useless at the very moment.
Worst of all for me was whenever I saw a reply of a founder of IOTA on a users complain about the issues of the network. He really offered him to buy back his tokens for a price about 90% below the market instead of addressing the real underlying concerns of a non functioning network.
Just about a day later the same founder replied to an open question of Charlie Lee, the guy behind Litecoin, about IOTA in a way which I wouldn´t do at any occasion being in his position.
MY CONCLUSION
Right now I don´t know what to believe as there is as much FOMO out there about IOTA as is FUD. I´m very excited though that a coin with an apparently unstable or even broken network can become the Nr. 4 crypto based on the market cap. Further the replies to the Community by IOTA founders are not really creating huge trust into the project either...
I will probably stay away from it for now and will await further news or improvements on the tangle. In case I should consider an investment within the next days anyways it would most probably just be a smaller position as the risks seem to be too high for me at the very moment.
What´s your opinion on IOTA?
Do You believe it´s a major Project or a non working Scam?
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have they actually partnered with these companies ?
I have read some contradictory reports.
I'm dubious my self, but check the replies to this tweet.
https://twitter.com/Siemens_Energy/status/938181340649926657
Thank you for the post, I have been debating on jumping in or not. For now I have an order at 1.8$. You never know... :D
Disclaimer: I am just a bot trying to be helpful.
This looks like they'd at least consider it but no real confirmation either :(
I have read them as well but decided not to mention it as this would be pure speculation at the very moment. But yeah I haven't found any proof or statements of those companies towards the partnerships either. So in case anyone got sth on it please share with us :)
They haven't. It's just hype at the moment.
Do you have any sources on that maybe?
I tried the wallet and didn't like it + the technology is very much in it's early stages: The vision is not to rely on a central coordinator for it to scale so your really betting if that will be overcome.
Personally I prefer Nem as these guys don't need to hype and are focussed on developing kick ass features that no one else is doing making it far more interesting to me in terms of utility.
Yes IOTA is definitely still in its early stages. But one got to admit that in case they can overcome their current issues the project might actually become one of the Top 3!
Iota was just not ready for this kind of explosion and stress on the Tangle. It exploded way too quick and the network is a newborn baby. There is also a lot of uneducated and not tech savvy people coming into the crypto world, these people don't know what they are doing and they expect the tangle to work identicallly to blockchain. I'm one of the really early adaptor and got in when IOTA was 0.18 cents. Read the whitepaper, hear some interviews with the developers and understand the technology and you can answer your question. The lead developer Sostevo is just frustrated with all the FUD and the attack from the blockchain community.
Well in case you're convinced of your own product, then there's no need for answers like this on twitter IMO... and the tangle being a baby in regards to the technology is basically the same than "it's not working" for me just expressed in a nicer way. I stay sceptical but agree with you that the idea is a really good one :)
Thank you @steembusiness - I have to admit, that I jumped on the IOTA train before doing my own research and trusting my intuition - mainly because of FOMO. Over the past 2 weeks I watched very closely how the IOTA management acted and the idea behind it all - as well as at which stage they really are regarding the software etc.
My conclusion is, that from a business perspective, the management seems to be totally clueless and not in touch with their user base - only re-acting instead of acting and steering the ship.
The moment you start to justify on a public scale, you have lost the game anyway....
The timing of their PR and the reality behind their product are also worlds apart, which leaves the users with a very bad taste...
Besides that, at the current stage one can just say, that the IOTA wallet is a huge fail. People are losing their IOTAs and get blamed for having done something wrong (like attaching and reattaching to the tangle, which btw. didn´t work for me at all!).
This whole project - may it be a scam or just totally incompetent business behaviour - is at best in a very early pre-alpha state - and it´s way too early to handle real money transfers - certainly not in the millions/billions.
So one could say, that this is just "normal" with blockchain tech, BUT it´s not! There are other blockchain project in this area - for example #Cardano - that have a very clear timeline, are WAY ahead in development AND have a working infrastructure!
You can´t just rest on the "we are in the early stages" justification.
So yes - I´m out of IOTA and not because of FUD, but because however the coin will develop over the next months, if there are so many things wrong on so many levels, the whole system is sick and are doomed to fail on the long run.
Sorry for writing so much, but these are just a few of my thoughts on this topic....
Interesting words/opinions of yours :) I definitely agree on the point that they can´t rely any longer on the "early stages" justification. They are a top 10 cryptocurrency now and should therefore get their things sorted as well as be more honest with their users/investors regarding e.g. their partnerships...
Btw. Cardano really seems to be an interesting project :)
@steembusiness look at the chart of Cardano -boy, that escalated quickly^^ too quickly for my taste - wanted to slowly build my stake - well, so much about that...
Yeah I feel you :D Was getting some funds accumulated to buy a bigger stake and then the next day it´s gone up like 200% already... :D
If Microsoft, Samsung, and other major companies partner with IOTA, then I think it's safe to at least take a look at it. I'm not personally invested in it, but I think it's a force to be reckoned with. I've read the whitepaper and it does look like amazing tech.
I agree it's worth a look but right now I'm very sceptical about it. I wish the founders would speak openly about the issues rather than hiding behind ridiculous offers and comments...
Yeah, I do agree that it's kind of ridiculous that there are so many network issues. But new tech will always have issues. If it's legit, the issues will be fixed and the tech will improve over time. So, time will tell.
Agreed but why is there no real official communication as the issues seem to go on for weeks already? That´s all very strange IMO
thats the thing - no OFFICIAL news on this. Irrespective of anything else, the founder can be polite in his comments instead of being sarcastic and ridiculing. If a mind as this leading this project, i am sure the future is bleak even though the idea is noble.
That's what's making it look really suspicious to me...
I personally think that Iota has potential but only the next few months will bring light to it being a good investment or not.
Generally all cryptos are a big gamble :)
Wow I've heard a lot about IOTA recently, but not a single source gave the impression that it might be a fraud. I think the power of blockchain technology is that it is incredibly stable and virtually unfuckable, and replacing it with one that is broken does seem a bit fishy. But hey, time will tell I guess.
It´s probably a legit project but I´m still suspicious about it as the were not really honest about the Microsoft partnership and their behavior on social media is questionable as well imo...
I have a friend from samsung and he claim they never partner to any, in fact he told me they are planning to create there own coin.
mmh in case that's true the scam would be more and more reasonable...
I have to say I'm pro IOTA. I'd like to believe that the issues with the wallet are just teething problems that will be ironed out in the near future. Overall the promise of the technology is so good it would be a shame if it all turned out to be a scam or just didn't pan out.
I agree with you on that. A fully working tangle would be very nice but for now I stay sceptical despite the potential of the project.
I've also read that many of their partnerships aren't real as well. This could all be FUD as well, but since it isn't on Bittrex I haven't really given it much attention.
I follow the news on it closely but just like you say, there's too much unclear right now