Since IOTA blew up in December, there were multiple scandals with the IOTA Foundation and founders that directly correlated with IOTA’s price. The IOTA Foundation is a non-profit organization, but despite that they and the founders of IOTA are receiving criticism all the time. In May of this year, the London University College (UCL) has stopped its association with the IOTA Foundation, because of legal threats.
“University College London Centre for Blockchain Technologies is no longer associated with the IOTA Foundation. In relation to recent news report, we reaffirm our support for open security research, as a prerequisite for understanding the assurances provided by any Blockchain Technology. It’s inappropriate for security researchers to be subject to threats of legal action for disclosing their results.”
When you look at the chart below, you can see that in May the price of IOTA had picked up momentum, but a downtrend followed. The scandal is just a single factor, but a factor nonetheless. In April, the IOTA Foundation board chairman Dominik Schiener was caught saying about an independent security researcher, that she needs to be slapped. Dominik deleted what he said, but the chat in Slack was snapshotted.
IOTA Foundation: It was a lack of information about the situation
Recently the IOTA Foundation released a statement about a problem that caused fear, uncertainty and doubt across the IOTA community. People were wondering if there is another scandal rising between the founders and the senior board members of the IOTA Foundation after a leak of internal conversations. The problem was that the founders of IOTA: Sergey Ivancheglo and Serguei Popov were waiting for their board seats for more than 4 months now. The problem was left open for four months and wasn’t given enough priority, despite the fact that the missing board members were the founders.
But everything took a turn of events! A Memorandum of Understanding will finally allow Sergey Ivancheglo and Serguei Popov access to the IOTA Foundation. The Memorandum of Understanding should be in effect by now and the timing is great, because of the first meeting of the IOTA Supervisory Board in September. The resolution of this problem was delayed mainly because of the fact that the IOTA Supervisory Board haven’t met yet. As a non-profit company registered in Germany, only a resolution by the whole Supervisory Board of the IOTA Foundation was able to give the founders seats.
Doubt and stress was in the head of both founders too, because Sergey Ivancheglo demanded the resignation of the Chairman of the Board – Dominik Schiener. But in the new IOTA statement it was cleared that it was all from too much emotions.
So where is IOTA Price movement now?
As you can see in the graph above, IOTA’s price has fallen drastically. The price of IOTA at IOTA’s heights was 5$ a piece, but yesterday it fell to 0.42$. This is a drop of more than 90% from the high which is frightening. Of course, yesterday was the biggest dip for the past 9 or more months and IOTA is no exception to the rest. So to see exactly where IOTA is, we need to see IOTA’s Bitcoin price.
It’s less than 90% in both Bitcoin and Ether price. So the fiat currency price will go up as Bitcoin goes up, but if you bought IOTA with Ether or Bitcoin, you care less if the markets fall or don’t. Those that bought at the highs paid a price to learn a big lesson in life and about economic cycles. To facilitate the loss you need to sell at the lows and as a long term believer in IOTA, I would advise to hold. The next economic cycle will come in the Crypto world and in the real world. If you’ve lost faith in the project, then wait for the next big bull run until the end of the year and sell at a favorable price. But for long term believers, I think that for IOTA the best is yet to come!