A few years ago, the IOTA token was a project that should increase in value massively in the next few years. The hype surrounding IOTA was particularly high among early crypto investors, as the project was launched right before the first mainstream crypto bull run. However, the disappointment was inevitable and in 2022 most investors doubt whether the IOTA future can ever regain relevance. Can IOTA token be good in 2022?
What is IOTA?
IOTA is a blockchain project that started in 2016 and wanted to implement fast transactions between devices in an “Internet of Things”. One of the co-founders was the German Dominick Schiener and the development of IOTA took place in the German capital Berlin.
Due to its blockchain concept, which was extremely revolutionary at the time, IOTA experienced extreme hype in the 2017 bull market. Instead of a blockchain, IOTA uses a three-dimensional tangle in which the transactions are to take place. Partnerships with large companies like Bosch created a massive rush of investors to the token, which temporarily brought the cryptocurrency to number 4 of the coins with the highest market capitalization.
Why did IOTA crash?
After the hype surrounding IOTA in 2017, the foundation behind the project was, unfortunately, unable to keep the promises of an extremely efficient and decentralized network. Further development stopped in the following years. The Tangle could not be designed in such a way that the network had true decentralization.
Many of the original founders dropped out of the project, so Dominick Schiener took over the management of the project. The partnerships with the big companies bore no fruit due to the technical standstill. Many other projects overtook IOTA in technical aspects. By 2022, the network will not have reached a modern technical level in the blockchain area.
Can the network become relevant again in 2022?
To solve the problems of decentralization and scalability in the network, IOTA has been relying on Coordicide for some time, an upgrade of the network that is intended to make it decentralized and more scalable. Most recently, IOTA released the Shimmer and Assembly networks on the Tangle.
Should the network actually solve its problems with scalability and decentralization in the coming months and years, IOTA could at least slightly catch up with modern networks such as Cardano, Solana or Avalanche. The potential is still there, but skepticism prevails after years of standstill.
Can MIOTA reach a price of $10?
In 2017, the price of MIOTA surged above $4 as part of the major bear market at the turn of the year. But in the years that followed, IOTA was never able to reach this price again. Currently, the MIOTA price is only $0.34 and the cryptocurrency has arrived at number 55 of the coins with the highest market capitalization. MIOTA has been in this area around number 50 for some time.
Optimists continue to hope that MIOTA could soon revisit an all-time high and eventually see $10. Earlier moon prices like 50 dollars do not seem very realistic at first. To do this, IOTA has to take an extremely important step towards decentralization and scalability.
Is it worth investing in IOTA now?
If you want to invest in IOTA, now is a relatively good time. The price is very low due to the bear market and you can accumulate many MIOTA tokens with your investment. The potential of the network is still extremely high, but the market has not forgotten the incompetence of recent years.
An investment in IOTA could be a risky move where you can make a big profit in the future. As a supplement to “safer” cryptocurrencies such as Bitcoin and Ethereum, a long-term investment could be worthwhile.
You might also like