Table of contents:
- 1 IOTA Course: How will the crypto currency develop?
- 1.1 Interesting facts about the course from IOTA
- 1.2 How has the IOTA exchange rate developed in the past?
- 1.3 Is IOTA losing importance?
- 1.4 What is special about IOTA?
- 1.5 What factors influence the IOTA course?
- 1.6 Influencing factors in detail: Blockchain technology and crypto hype
- 1.7 Founder and opinion leader: Who determines the course?
- 1.8 Criticism of IOTA
- 1.9 IOTA developer team causes scandals
- 1.10 IOTA forecast: What market observers say about the future development
- 1.11 Nevertheless, we list some of the better known forecasts here.
- 1.12 How will IOTA develop further?
- 1.13 Will IOTA lose value completely?
- 1.14 Profit from the volatility: Use IOTA as an underlying asset for trading?
- 1.15 Buy IOTA: Don’t just look at the exchange rate, but also at the fees
- 1.16 Conclusion: IOTA at the crossroads
IOTA Course: How will the crypto currency develop?
For a long time IOTA was considered one of the crypto currencies with the greatest potential. But in the last months the crypto currency was increasingly overtaken by competitors. This is not only shown by the IOTA exchange rate, but especially by the market capitalization in relation to other crypto currencies. But why is IOTA losing ground and will the crypto currency recover?
We inform you daily about the IOTA price and also provide you with historical data. Furthermore, we list important factors that could determine the further performance of IOTA and have collected forecasts for them.
- IOTA one of the more powerful crypto currencies
- Loses importance and value
- Further development could be decisive
- Market sentiment and hypes important for share price
Interesting facts about the course from IOTA
If you want to understand and follow the IOTA course, you should understand a few important facts about the crypto currency. Correctly it should be called MIOTA course, but we always give the course here as IOTA. A total of 2.779.530.283.277.761 IOTA were issued directly at the start as Public Initial Offering, IOTA Mining and an increase of the number of Coins is therefore not possible. Due to the exchange rate and in favor of a simpler conversion, MIOTA, i.e. millions of IOTA are usually traded. There are consequently 2,779,530,283 of these.
At the beginning there was no official exchange rate of IOTA. The beta testers could trade among themselves. However, the first price was not calculated until May 2017. At that time the Bitfinex trading exchange included the crypto currency in its program. Accordingly, a meaningful price could be determined for the first time in a larger market.
In the following we always quote the IOTA exchange rate in US dollars. An IOTA exchange rate Euro is easier to estimate for customers from Europe, but this applies only to beginners. As with oil, it is also common for crypto currencies to use the US dollar as a benchmark. Since a large part of the literature on crypto currencies uses this standard, it makes sense to get used to it. In this way, data and statements can be compared more quickly.
The current market capitalization of IOTA is about 710 million US dollars. At the end of 2017, however, the coins symbolized an equivalent value of around 12 billion US dollars. At that time, IOTA was still among the 10 largest crypto currencies in terms of market capitalization.
How has the IOTA exchange rate developed in the past?
Investors who look at the IOTA share price basically see the typical course of one of the more relevant crypto currencies, by which the crypto currency hype and its high phases can be read very well.
A small first high phase is from August 2017 to September. There the exchange rate reaches over one US dollar for the first time. The crypto hype then flattened out a little, only to pick up even more and set new records.
Thus the crypto currency has its all-time high like most other coins in December 2017. On December 19, 2017 the IOTA exchange rate in US dollars was 5.32 US dollars. The currency has not reached a higher value. Afterwards, the exchange rate weakened again significantly and fell back to below one US dollar by April 2018.
This was followed by a slight recovery to as high as USD 2.50 in summer 2018, after which it fell to below USD 0.50. Since then, IOTA has been trading in a range between USD 0.20 and 0.5. The long-term trend seems to be rather negative. In the course of the year, however, there are certainly some high points, which are linked not least to the recovery of Bitcoin.
IOTA is like every other crypto currency thus not least dependent on the reputation of crypto currencies in general. Here it shows exemplarily how large the increases in value during the Hypes were and how much money investors lost. Even at IOTA this is an amount of more than 10 billion US dollars.
Is IOTA losing importance?
If an investor looks at the IOTA price live, no clear trend can be seen. Even the IOTA annual chart for 2019 does not necessarily look like IOTA is steadily losing value. However, this changes somewhat when traders look at longer periods of time. Basically, the IOTA exchange rate reflects the general opinion on crypto currencies, not only the opinion on IOTA itself. However, it is certainly indicated that an IOTA exchange rate is now lower than when it was issued.
In May 2017, the coins were sold for 0.64 cents per MIOTA – almost three times the current price. What also suggests that IOTA is losing ground is the fact that IOTA is slipping further and further down the crypto-currency rankings. IOTA was long considered one of the most promising and modern crypto currencies. However, this is no longer necessarily the case. Many other currencies have gained a better reputation, especially in terms of future potential and familiarity. Among them for example the competitors:
They too are not classic Bitcoin crypto currencies or are characterized by other unique selling points. While MIOTA was not only able to show a multiple of the market capitalization at the peak of the cryptohypes in December 2017 and was among the 10 most valuable crypto currencies, today it is only to be found among the Top 20. This clearly shows that many investors now see more potential in other currencies.
What is special about IOTA?
IOTA was just at the beginning perceived as one of the most promising crypto-currencies. The reason for this was that IOTA does not simply use a block chain, but instead relies on a so-called distributed ledger technology.
IOTA does not simply use a block chain, but each transaction represents a node on a directed acyclic graph. Such a graph is also called an Angle and, unlike a single block chain, has no unique end and beginning. If an IOTA user wants to perform a transaction, he has to check two other transactions himself. In this way they achieve a sufficient level of verification. Furthermore, as with Bitcoin, it is necessary to solve a cryptographic task.
A so-called coordinator publishes “milestones” containing the verified transactions at certain intervals. This is a central instance, which has often been criticized. IOTA is now planning to replace it and is in a test phase.
Theoretically, an unlimited number of transactions can be carried out on the network. A special feature is also that the transaction speed ultimately increases with the number of participants and does not decrease as with many other crypto currencies.
IOTA is therefore regarded as one of the technologies that seems optimal for the Internet of Things. One of the challenges of the founders is therefore still today to cooperate with developers, who succeed in using these possibilities.
What factors influence the IOTA course?
The IOTA Coin course is subject to many different influencing factors. IOTA has a relatively low market capitalization. With currently around 700 million US dollars, the crypto currency has a market capitalization that roughly corresponds to a smaller SDAX company. At the same time the international attention is much greater and IOTA is still one of the largest and most well-known crypto currencies.
Accordingly, IOTA is susceptible to manipulation and severe market corrections, without the occasion always justifying this to the same extent.
Therefore, the influencing factor cannot always be identified. There are, however, some events that are very likely to have a significant impact on the share price.
For example, it is not least the market sentiment in general and the one for crypto currency in particular, which also influences the price of IOTA. Crypto-currencies are now considered a kind of risk indicator: when funds are withdrawn, investors fear price collapses and so naturally cause them. A strong Bitcoin affects besides always also favourably the Altcoins.
A further important influence are the founders and the Community itself. Messages for the advancement, which are positively received, affect themselves partly very favorably on the course. However, it is also possible that conflicts and problems can also put pressure on the course.
Trust is another important factor. Therefore, thefts or known security gaps always have an effect on the course.
Influencing factors in detail: Blockchain technology and crypto hype
There is hardly any way not to recognize it relatively clearly: It is less the actual performance or further development that determines the course of a crypto currency. Instead, it is above all the market sentiment that decides on an investment for most investors.
This is shown not least in the classical course of exchange, which is reflected with actually each crypto currency, which possessed already in the year 2017 a minimum of admittingness: There is a first peak in the summer of 2017, the absolute high in December 2017. This is followed by a very significant correction and a renewed recovery in spring/summer 2018. Then the price settles down at a much lower level, possibly with another smaller high in summer 2019. This course is typical for the crypto currency hype.
However, this also clearly shows how little the actual performance or further development has to do with the sometimes very blatant price trends. In many cases, this is mainly speculation by traders who have little to do with crypto-currencies, but all the more with risky investments.
Really meaningful become course courses of events therefore above all if they are examined in relation to each other. In this way the Hypes can be excluded somewhat and it becomes clearer, when for example another crypto currency IOTA hung off and IOTA itself lost ground.
Founder and opinion leader: Who determines the course?
The IOTA price is largely influenced by hypes and market sentiment. Here individual opinion makers can influence the rates of all crypto currencies. If, for example, a star investor like Warren Buffet advises against crypto-currencies in general, this certainly indirectly affects the prices, because many trust his words.
On the other hand, one of the central problems at IOTA is the fact that the crypto currency is not completely decentralized and the founders and developers are known. Although they have provided IOTA as open source, they still play a very central role in the further development of the crypto currency. This also leads to the fact that there is a select circle of a handful of people whose word counts for much more than that of another user.
The last time this became clear was in mid-November 2019, when IOTA co-founder Sergey Ivancheglo announced that he would leave the IOTA Foundation and sell his IOTA Coins. This was the last step in the separation from IOTA, which was apparently already fixed in June 2019.
As a result, the IOTA share price collapsed by several percentage points from USD 0.2633 to USD 0.2536 within one day and did not fully recover in the following days. Thus, this news was seen as a clear sell signal by larger parts of the community. This shows that co-founders and well-known community members can also have a significant impact on the share price.
Criticism of IOTA
One of the reasons why IOTA could be overtaken by other crypto currencies in the last months could be the well-founded criticism, which points out weaknesses in the technical implementation of IOTA.
So one of the main points of criticism has always been that it is not a completely decentralized crypto currency. For final validation, the so-called coordinator is still responsible. This means that in an emergency, accounts could even be frozen because transactions are not validated. However, IOTA has reacted to this criticism and is working on decentralization. So far, however, “Znet” is still in beta testing.
Even in the beginning, IOTA was slowed down several times. For example, in the summer of 2017 it became known that the specially developed hash function Curl had numerous weaknesses. As a result, the IOTA network would possibly be highly vulnerable. Curl was subsequently replaced by Keccak. Overall, however, the announcement and the handling of the vulnerability did not necessarily lead to more trust within the community.
In December 2017, IOTA was stolen by a single user for the equivalent of approximately $30,000 US dollars. The cause study showed that it was possible to calculate the private key without any comparative ease. Again, IOTA reacted promptly and corrected this weakness. However, this incident also caused a massive loss of confidence among IOTA users. Since then, however, similar incidents have not become known and IOTA is considered comparatively secure.
IOTA developer team causes scandals
One of the most important reasons why IOTA could not prevail against other crypto currencies in the end could be the fact that the development team is often perceived as a trouble spot. The departure of Sergey Ivancheglo is just one of the highlights. Again, many speculate openly about disagreements within the development team.
Before, it was not least the scandal around Curl that damaged the reputation of IOTA. The alleged weaknesses were uncovered by the Digital Currency Initiative of MIT. Employees showed that a lack of pseudo-randomness and collision safety could be a significant weakness. Ivancheglo questioned the results, accused the researchers involved of deliberate deception and threatened legal action via Twitter. Co-founder Sønstebø also attacked Ethan Heilmann, accusing him of publishing the vulnerabilities in order to make money.
Ivancheglo subsequently even claimed that the weaknesses had been deliberately integrated into IOTA in order to prevent copies of the IOTA network. The vulnerabilities were also not intended to compromise security. Nevertheless, they were later replaced by the Keccak feature.
Finally, the e-mail communication with MIT was published on a blog. As a consequence, the Center for Blockchain Technologies in London discontinued its cooperation with IOTA.
Quite a few observers assume that the IOTA Foundation has been so badly damaged by this approach by scientists that it has not been able to use its full potential to date and is continuing to lose ground.
IOTA forecast: What market observers say about the future development
All in all, many analysts are more likely to assume that IOTA will recover again and will even be able to celebrate new highs sooner or later. There are not yet many analysts who specifically deal with crypto currencies and unfortunately they are not always transparent in their forecasts. Therefore, investors have to take this data with caution. This applies not least also because crypto currencies are so new as an asset class.
Nevertheless, we list some of the better known forecasts here.
- Profit Confidental sees the target price “sooner or later” at 5 USD
- WalletInvestor sees the price at 0.363 USD in one year, 0.573 USD in five years
- Smartereum assumes USD 38 in five years.
When looking at the forecasts, it is of course very quickly apparent that they are in part significantly different. While Profit Confidental is already playing quite high poker by getting the all-time high within reach again (but at the same time making itself almost untouchable by “sooner or later”), WalletInvestor sees the share price almost stagnating in comparison. Thereby the course doubles there even. Smartereum is naturally more than optimistic.
Profit Confidental takes a technical analysis as its basis. WalletInvestor uses an algorithm that is not described in detail and leaves out fundamental data. Smartereum, on the other hand, argues mainly with fundamental data such as partnerships, but is not very convincing in its analysis.
How will IOTA develop further?
The IOTA forecasts and their very divergent analyses are certainly very exciting. However, one of the main problems is that the crypto-currency market is still very new. It is still completely unclear how it will develop if the market conditions change. To make a forecast is accordingly also clearly more difficult than for example with shares.
The above mentioned forecasts mainly see a positive development. However, this does not necessarily have to be the case. There are quite a few reasons why IOTA could lose further relevance in the long run. Interested parties should therefore not be misled. Forecasts are all well and good, but they offer no certainty whatsoever.
A current IOTA share price is always only an indication and not a reliable indication of the actual value. This is determined not least by how good the work of the development team is. Also functioning cooperations and an improvement of the reputation could ultimately contribute to IOTA becoming one of the most popular crypto currencies again.
Accordingly, most forecasts have little more hand and foot than a glance into a crystal ball. Especially in the crypto sector, further development is hardly foreseeable. More founded are considerations, what IOTA must carry out, in order to gain again relevance in the comparison to certain crypto currencies. Also an assessment of the asset class itself can bring more knowledge gain than an assessment only from IOTA. This results not least from the strong impact of market sentiment.
Will IOTA lose value completely?
Even if most forecasts are rather benevolent, it is of course possible that IOTA will not only not be able to reach old peaks anymore, but will instead become less and less important. This would then probably lead to IOTA Coins hardly being worth anything anymore.
For it is not least the importance of IOTA that supports the course. If more and more users see IOTA as not relevant, the value will also continue to decline and the decline will thus reinforce itself. IOTA would then be offered less and less frequently on the stock exchanges and thus traded less frequently. It would fall into oblivion and eventually no longer be worth hundreds of millions of euros. At some point the crypto currency would then be just another Altcoin that did not manage to assert itself against the competition.
However, IOTA is quite functional and powerful. So as long as none of the newer block chain technologies has prevailed against the others, there is no reason why this could not be IOTA. However, there are some risk factors:
Development team cannot implement improvements
- New security vulnerabilities become known
- IOTA Foundation cannot win new partnerships
- Other crypto currencies grow significantly faster
The fate of IOTA is therefore not least in the hands of the IOTA Foundation. If the urgently demanded improvements are not implemented and IOTA is decentralized, further success seems unlikely. For IOTA, it will also be decisive which partnerships are successful and make the crypto currency better known again.
Profit from the volatility: Use IOTA as an underlying asset for trading?
Even if at first glance it hardly seems as if IOTA would undergo major price movements: The IOTA dollar price shows fluctuations of several percentage points. It can be correspondingly attractive to trade IOTA via CFDs, for example.
Fluctuations within a few days can be optimally exploited. Traders with the right instinct can thus achieve a very high return. This is all the more true since trading with crypto currencies can often be executed with a leverage effect, even if this only allows for double the investment on average.
On the other hand, this naturally increases the risk. In addition, due to the financing costs it is usually not reasonable to hold positions for a very long time. Therefore, a large part of private accounts lose money. Usually, depending on the broker, around three-quarters of all accounts are losers. Anyone interested in this financial product should therefore bring sufficient time and capital with them. This is also important because volatile values are not necessarily considered suitable for beginners.
However, IOTA is not offered by many brokers. The market capitalization of the crypto currency is not large enough compared to its competitors and IOTA has always been a second-tier currency. However, most crypto currencies have very similar characteristics, making it easy to find alternatives.
Buy IOTA: Don’t just look at the exchange rate, but also at the fees
If you expect IOTA to increase in value in the future, you should at best buy IOTA directly. This gives users more time to wait for their forecast to come true. In order to buy IOTA as cheaply as possible, users should consider various factors when choosing their stock exchange or bureau de change.
First, IOTA is not the most liquid asset. This means that buying and selling prices can sometimes differ significantly. Therefore, it can be useful to keep an eye on several exchanges at the same time. However, this usually requires the customer to be verified at several stock exchanges, because this is the only way to make fast purchases. When comparing, customers should make sure that they only relate comparable prices to each other. Here it is often useful to use US dollars as a basis, because an IOTA price Euro is not offered in every exchange.
Another important factor is the fees, which sometimes differ greatly between the various providers. With some providers customers have to pay more than one percent of the trading volume, with others it is only one tenth. Of course, these differences can affect the price at which a user can buy IOTA.
In addition, customers must decide beforehand how they need to trade IOTA. Is fiat money the only currency available? Often users exchange their fiat money first for Bitcoin and then for IOTA on cheaper exchanges. This procedure can be cheaper because Bitcoin has more competition and therefore the fees are lower.
Conclusion: IOTA at the crossroads
IOTA is without question one of the most exciting crypto currencies at the moment. The Coin ranks among the Altcoins, which lose at value – also measured at the other crypto currencies. At the same time IOTA is one of the cryptos where this is not necessarily directly understandable. IOTA is much more powerful than the many first-generation altcoins such as Monero, Litecoin or Dash, which have suffered similar losses in value. However, Iota has to catch up slowly to not disappear in insignificance.
Therefore, it currently depends very much on how well the developers succeed in finally decentralizing IOTA completely. Equally important are further successful partnerships that could integrate IOTA in everyday life.
How IOTA’s course will develop, however, also depends on how the market mood among crypto currencies will change. Renewed euphoria is considered unlikely for the time being, so the market may calm down somewhat. IOTA, too, would then presumably remain at the previous level and only fluctuate in value as a result of specific news.
The value of IOTA in the future is therefore not least a question of its own further development and the confidence of investors in crypto currencies.