IOTA Tanks After Co-founder Reveals That Microsoft Is Not A Partner

The Price of the IOTA took a dive last week after the AOTA foundation released a statement notifying the press that Microsoft is not one of its partners.

The announcement which was made by one of the founders of the cryptocurrency revealed that the IOTA foundation does not have an official collaboration with Microsoft. The announcement comes amid rumors within the cryptocurrency community suggesting that there is a partnership between IOTA and the internet giant. The announcement laid the rumors to rest and it also seemed to have affected the performance of the altcoin because it tumbled by 15 percent from a high of $5.03 to a sub $4.20 price.

The announcement seems to have undone the gains that the cryptocurrency has amassed over the past one month during which it had surged by 600 percent. IOTA had been trading at an average of $4 and the recent announcement seems to have caused the price to go down to that same range.

IOTA co-founder Dominik Schiener stated during an interview that the IOTA foundation has never described any of the companies participating in its marketplace as partners. He also added that the IOTA foundation is in touch with multiple Microsoft divisions in Munich, Paris, and Chicago. The co-founder also revealed that the two organizations had planned to hold meetings this week. Microsoft’s blockchain executive Omkar Naik also released a statement pertaining to his company’s involvement in the IOTA data marketplace.

“This next-generation technology will accelerate the connected, intelligent world and go beyond blockchain that will foster innovation real world solutions, applications, and pilots for our customers,” stated Naik.

Schiener also revealed that Naik’s team will meet up with IOTA’s development team to jointly work on sensors that will allow the sale of Microsoft’s data directly on IOTA’s marketplace. A CNN report also claims that IOTA is working hand in hand with other major corporations such as Volkswagen, Cisco, and Samsung. These companies are expected to continue with the testing of IOTA’s technology in the future. Schiener pointed out that the introduction of the data market is just the start and the project is a multi-stage affair that will continue running for the next few weeks.

Despite the drastic drop in the value of IOTA after the announcement, its market valuation is still holding strong at more than $11 billion which is above its market cap in November this year. The announcement is also by no means not meant to discredit the legitimacy of IOTA and its underlying technology. Meanwhile, IOTA is still considered one of the major cryptocurrencies despite its value being significantly lower than that of its counterparts such as Litecoin which has recently been trading at more than $300.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Mike Mozart via Flickr