Accompanied by great optimism, IOTA rolled out the Stardust upgrade nine days ago and, at least from a technological perspective, everything has gone smoothly so far. However, the internal mood of optimism was not echoed in the crypto markets, on the contrary: Since the launch, the price curve of IOTA is down 9 percent and is now trading at $0.14, the level of a persistent all-time low.
Observers attribute this downward trend to, among other things, the 65 percent increase in the total holdings of all tokens associated with IOTA Stardust, from which price pressure will predictably arise over the coming years.
Read more about Stardust and how it influenced the price of the token, and read the latest financial news of the day with our companion app Born2Invest.
A look at the details shows that the Foundation under chief Domink Schiener does not fulfill its promise of great transparency regarding the newly allocated tokens
The movements of the good 300 million IOTA documented, which were newly created by Stardust to the Berlin IOTA Foundation are important. Schiener had announced that these would be transferred to a cold wallet. But instead, the IOTA in question, worth the equivalent of a good $4 million, is being split into smaller tranches and shifted back and forth, and we suspect that the foundation has started to monetize tokens without a time lock (“unlocked”).
Also unresolved so far is who is hiding behind the 10 validators. While IOTA has always had only one coordinator, this is now said to be divided among 10 instances. But if it is not clear who is hiding behind it, it could simply be that the IOTA Foundation simply controls the 10 coordinators itself. We have already seen something similar in the past with Julian Hosp and his DeFiChain project.
Prominent departure at the Foundation
Meanwhile, the IOTA Foundation has to cope with the departure of Mariana De La Roche Wills. She joined IOTA in December 2018 and was responsible for regulatory affairs and institutional collaborations. On X (formerly Twitter), the lawyer explained her departure at the end of the year after five years with IOTA, citing “challenges over alignment within the team” and “shifts in market acceptance” of IOTA.
Who will take over Mariana De La Roche’s role in the future has so far remained open. Her responsibilities included, for example, representing IOTA at the blockchain association INATBA (International Association for Trusted Blockchain Applications) and in EU expert groups. What is most interesting about her farewell post is the fact that she does not say anything positive about IOTA’s future.
Back in August, Charlie Varley had already resigned from the IOTA Foundation. The former technical director focused on IOTA wallets is now working on a new wallet solution called Bloom, which is already being promoted via blog post. However, the wallet is not yet finished and lacks web presence except on X, where a cherry blossom emoji is the only word of Varley and his Bloom team’s own so far. In typical IOTA fashion, topics are again hyped here without anything presentable.
Conclusion: IOTA reboot failed – a glimmer of hope Shimmer (SMR)?
Upgrade Stardust did not ignite at IOTA, the “rocket launch” conjured up by Schiener turned into an engine failure in terms of price. The situation is no better for the IOTA side project Shimmer(SMR). Here, the price curve is stuck at $0.04, also at all-time low levels.
The hoped-for positive impulse from the successful integration of the Ethereum Virtual Machine (EVM) at Shimmer at the end of September did not materialize. The IOTA Foundation and Schiener will have to deal with how to make up for the botched reboot.
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