The fact that the IOTA should cost less is indicated by the shortcomings of its protocol
Analysts from the center of Multicoin Capital are convinced that the price of IOTA is completely unjustified, and the Cryptocurrency actually should be several times lower than today’s price level. This is indicated by the absence of a real product, as well as the centralization of the network and its instability. The very approach of IOTA developers, which initially allows critical vulnerabilities of the software, is a cause for serious concern.
Specialists of Multicoin Capital have released an analysis of the IOTA project on 12 pages. The conclusion of this work is that the 11th place in terms of capitalization is absolutely unreasonable, and the price at which the coin is now traded is far from the reality, given the size of the contribution that IOTA has brought to the world’s crypto-exchange ecosystem.
“We took into account the current state of the network, significant technical defects, a set of evidence pointing to the protocol’s shortcomings, and came to the conclusion that IOTA is incredibly overrated,” said analysts at Multicoin Capital.
One of the main problems experts considers the lack of a real application of the product of the project. Section, which describes the use of cryptocurrency, suggests that today’s market has no specifics, and besides it is rather small. He could not create the proper level of acceptance by users to justify the costs of their switching.
To realize the concept of “Internet of things” (IoT), it will be necessary to make significant changes to the devices that will ensure the work of this concept, in other words, so that they can really ensure the implementation of transactions, they need to be seriously refined.
Also important is the fact that the IOTA network now relies on a centralized “coordinator”, the source code of which is closed, and the developers do not give any specifics about when and how it will be eliminated. Recall that the centralization of the team of creators had to move because of the endless mistakes and attacks that they encountered.
Analysts at Multicoin Capital agreed that the IOTA network is simply not suitable for work. True, the IOTA team claims that they know about the vulnerability, but left it on purpose as a copy protection mechanism. They also argue that a centralized “coordinator” is necessary, as a protection against hacking, but this can not be verified because of the closed source code.