Blockchain Investor Analysis

IOTA

MIOTA
Current Price $0.28 (-0.25%)
The IOTA team seeks to create an ecosystem that connects two of the most complex technologies in existence: blockchain and the Internet of Things. They use a technology called "Tangle" to enable zero-free transactions while providing scalability. The MIOTA token acts as the primary payment method between devices within the ecosystem.

Our Rating:

Market

Problem that it solves

IOTA wants to provide a secure, scalable and fee-less settlement layer for humans and machines to participate in the decentralized economy.

Customers

The customer base for IOTA is more open ended than most projects. It will mostly consist of businesses, no matter the size. The unique part of IOTA is that it enables entirely new business models by doing two things really well: transactional settlement (especially fee-less and fast micropayments) and data integrity.

Value creation

As of right now, IOTA provides value through real-time streaming payment services for data and energy, immutable data history tracking for supply chains, and computational resource sharing.

Market structure

The market for IOTA is developing faster than most other industries due to the space they've decided to enter: The Internet of Things. The Internet of Things consists of smart devices that are able to communicate with each other and make decisions based off data without the need for human intervention. Everyone knows this space will be huge, but it's just not there yet.

Market size

The global market for Internet of things (IoT) end-user solutions is expected to grow tremendously over the next few years. Most experts have it valued at $1.6 trillion by 2025.

Regulatory risks

This space is already developed and regulated by most governing bodies. Having said that, IOTA stays away from the financial sector and will naturally face less regulation than finance blockchain ventures.

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Competitive Advantage

Technology/blockchain platform

IOTA operates on the 'Tangle' distributed ledger. It's technically not a blockchain but still retains features like decentralization and heightened security. In early 2020, the entire network was down for days, suggesting the technology is not as stable and robust at it should be.

Lead time advantage

IOTA has been around since 2016 and has established itself as leading IoT-focused blockchain venture.

Contacts and networks

IOTA has proven that they have the ability to partner with major corporations like Microsoft, Volkswagen, BOSCH, and Samsung while maintaining their own unique identity.

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Management Team

Entrepreneurial Team

IOTA has shown incredible innovation in its short lifespan and the team has shown it can attract large corporate partners. However, the IOTA network's multi-week downtime in early 2020 has tarnished the team's track record.

Industry/technical experience

IOTA has been around for almost five years and its team has demonstrated that it has well above 10,000 hours of experience.

Integrity

IOTA has had recent issues with hackers connecting to their network in an apparent attempt to steal data. The IOTA team typically cleans these messes up with great urgency. However, the IOTA network's multi-week downtime has questions the project's transparency.

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Token Mechanics

Token required

The MIOTA token is designed to be a means of payment between humans and machines as well as machines and machines. It essentially allows machines to interact and transact with one another via smart contracts.

Value added

The unique part of the MIOTA token is that it doesn't necessarily have to be a human that uses it in a transaction. There is a case to be made that computers will use it more than humans, which could drive the price considering the number of devices connected to the internet.

Decentralized

IOTA is one of the more centralized projects in the blockchain market.

Token supply

The IOTA token (MIOTA) has a fixed circulating supply of 2.78 billion. The total supply is something that is confused very often. IOTA is trading in MIOTA that means, if you buy 1 MIOTA today on an exchange you will buy 1 million IOTAs.

Public exchange

MIOTA tokens can be found on several major exchanges.

MVP

IOTA has been online and operation for several years. It remains the biggest player in the IoT space stemming from the blockchain industry.

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User Adoption

Technical difficulty

IOTA arguably has one of the most complex distributing ledger protocols that even some experienced digital asset investors may find challenging to fully comprehend. Having said that, the project's main target customers are corporations and technology companies.

Halo Effect

IOTA has an excellent job of getting major companies on board. Their most notable partnerships include Google, Volkswagon, DnB, Jaguar, and Audi.

Buzz

The IOTA buzz was far more significant in late 2017 and early 2018. Since then it has died down considerably due to IOTA's own issue filling promises to companies early on.

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Overall Score

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Blockchain Investor Analysis

For MIOTA adoption to soar, it's crucial that IOTA attracts major corporations to their network in order to build their matrix of connected IoT devices. The devices within the network will be programmed to interact with each other without the need for human intervention. This could be an integral part of the future of the Internet of Things. However, IOTA has had its fair share of challenges and the project is not without controversy.

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