Hi everyone, I have been following IOTA for a while now and I was really anxious to see what would happen when IOTA hit the exchange. Well it plummeted. The first week IOTA hit the exchange it decreased a lot. It was about 50% if I remember correctly. I was really disappointed and thought but IOTA seems so promising, what’s happening? I started doing research on what could have caused this big plummet. During my research I have come up with a couple possible explanations for this decrease.
- I think it might have something to do with the people getting involved with IOTA for a lower price before it hit the market and cashing out when it did hit the market for a higher price than they paid for it when it wasn't on the market. They saw their chance to make a nice profit and got out.
- Explanation number 1 caused fear, because the price of IOTA started to decrease people got fearful and sold their IOTA. That let to even more supply than demand and thus decreasing the price of IOTA.
- The misunderstanding of IOTA and MIOTA and the amount of IOTA. IOTA is traded in MIOTA, but when it first hit the exchanges this wasn’t clear to everyone. I’ve come across a lot of people saying IOTA has a ridiculous amount of coins. And they didn’t know why and were skeptic because of that high amount. When I asked them why they thought such a high number of coins was bad they couldn’t really tell why. But this misunderstanding of why IOTA has so many coins made them hesitant to buy it and some people even called it a scam. I don’t get why it would be a scam if a cryptocurrency has a huge amount of coins, but I’ve came across various individuals saying that it must be a scam because of the amount of coins. In fact it’s actually a good thing that IOTA has this huge amount of coins. It’s to make micro transactions easier. IOTA wants its currency to be used by the Iot (Internet of things) therefore there will be a lot of microtransactions in the future.
- Also there were problems with bitfinex. The only site where you could buy IOTA.
I’m positive IOTA will recover from this price collapse in the upcoming weeks. I think IOTA is now in an upwards spiral and is going to restore its price from when it hit the market around $0.60 per MIOTA (1 000 000 IOTA). Of course this is just speculation based on my own research and believes and no investment advice of any kind.
Let me know what you think and if you can think up other reasons why IOTA has plummeted last week. If there’s anything you would like me to cover or to clarify just let me know in the comments. And of course if you have questions about IOTA or cryptocurrency in general let me know via a comment and I will do my best to provide you with the best information I can give.
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All the best,
Nathan