IOTA cryptocurrency is a scam, here’s 10 good reasons why
- An abundance of fake news
Some cryptocurrencies are known to use fake news to pump up the price, but IOTA has taken it to a hole new level. There’s nothing that verifies.
In one of it’s latest blog posts, says something about Microsoft partnering with IOTA. This guy ->
It’s like, finding a package mover in an Amazon warehouse that supports your coin, and saying that Amazon partners with you :)
ATTENTION: before you comment on this article!
Since IOTA has gone down, and will continue to go down, I won’t waste my time responding to the same stupid arguments calling this a FUD. I already, many times, responded and wasted time on lots of comments, so go ahead and read them all. If IOTA somehow manages to enter again in top 5 coins, I’ll update this article with more stuff. Heck, If it manages top 5 again, cry over your IOTAs if you had some, move on and STOP commenting like a pussy on my blog!
2. There’s a company behind it.
There’s no decentralization like in bitcoin and others altcoins etc. This makes it very easy for gov., taxes etc. to see where the money is going in case it becomes important enough.
A reader pointed out that it’s a foundation and not a company.
Foundations are more commonly used for non-profit activities such as charities, give or receive donations, grants, etc., but also they may be used for “holding” purposes, as to keep the property of corporations or any other type of goods. Most of our clients use the foundations for confidentiality purposes to keep the ownership of their corporations and asset protection.
3. You cannot get new coins unless you buy them.
2,779,530,283,277,761 IOTA was premined and distributed to devs / investors etc.
It’s like me, creating the Supercryptocurrency coin, a 999 billion supply, giving it all to whomever I want. Then all I have to do is make some “waves in news” and some “partnerships” to increase it’s value.
4. MIT attacks IOTA
MIT analysed it and found vulnerabilities, IOTA claims that they are only “academic” and they were “deliverate” to prevent copy-cat projects and allow IOTA to compromise them. (this is what the IOTA confounder Sergey Ivancheglo said)
Besides that it’s a bullshit explanations, why in the world you would want to hurt other projects that took your OPEN SOURCE code ?!
5. Internet of things is cheap and will stay cheap
IOT is a smart device ( physical devices, vehicles, home appliances, and other items embedded with electronics). Now, by design those are build in China mostly. They are build to be operational AS CHEAPLY as possible, because every $0.001 counts when you sell millions. Now, to put a better CPU, memory, disk space on a IOT device so it can handle iota transactions, would mean to increase the price with some $$$. That’s not going to happen. The only way this works is because Samsung, LG etc. want to get the data for themselves. Please don’t confuse CHEAP WITH OUTDATED! Nokia is a cheap phone, but also with outdated technology.
6. My fridge produces IOTA ? I want the money because it’s my fridge!
If someone would discover that your smart fridge is used to “produce” IOTA, would consumers be upset ? I mean, why they can have what THEIR fridge is “producing” ? However most consumers have no idea how to make a iota wallet, how to verify that the fridge is mining, and how much is mining.
7. It’s technically bad designed.
For the math lovers here’s a guy making an analysis
When I first learned about Iota, at Hack The Valley in January, my initial interest was quickly tempered by scepticism…hackernoon.com
8. IOTA wallet git repo issues.
(issue added by one of our readers)
I have invested a small amount but there is no way of getting it out of the wallet as it’s impossible to connect to the wallet due to “CONNECTION REFUSED”. There are some rumours that this bug is intentionally created by IOTA developers so that they can keep hyping IOTA and the value can’t significantly drop as people can’t withdraw their investments from IOTA wallet. Free transactions, but it took more than 48h before my transaction was confirmed. The reasons why I see people investing in this crypto is that it’s overhyped and no research has been done before investing.
See all issues here: https://github.com/iotaledger/wallet/issues
[my note] As a developer I know that you should keep clean the issues, close the ones that are “fake”. Close the ones that have no activity on them (this means the case is so rare, it’s no point in putting energy into it). That software has issues from Jun 18 2017!!! Meaning the maintainers of it don’t give a shit about keeping their github issues clean.
9. It is technically bad designed PART 2. (or IOTA transactions are often stopped at exchanges due to “technical” reasons. )
There are 274 (now) coins on Bittrex / Binance. Just IOTA and 2–3 others small coins have problems due to …technical reasons. How come ?! Are those people at Bittrex / Binance INCOMPETENT ? NO. The problem is with IOTA and because the network is spammed constantly.
enjoy this image from iotasear.ch
10. Some IOTA wallets / nodes are scamming people out of their money
I made bold the important stuff
Not sure if this is the right forum for this. Apologies if it isn’t
I should also mention that I’m not a computer noob. I’m also not new to Cryptos, though I am new to IOTA.
After doing a bit of reading, I have to say that I had high hopes for it.
So I dived in and bought some on Bitfinex.
I then moved my purchased IOTA from the exchange and onto a wallet, as is the prudent thing to do when dealing with Cryptos. I initially chose the Android Wallet.
The transferred a small amount out of Bitfinex to test. This went smoothly enough and the balance showed in my wallet. So I transferred the rest into the Android wallet. Again, all relatively smooth.
The problems started when about 2 weeks later, I decided to transfer some IOTA back to the exchange to sell. I found the wallet to be quite unusable as it would take a long time to display the balance, there was a loading time between selecting each option. When I finally managed to send a transaction I found that getting it out of the wallet was not as smooth as getting it in. The transaction sat “pending” for days.
So I started doing a bit of digging and found that this seemed to be a common issue with the main advice being along the lines of: Re-broadcast / re-attach to tangle.
So I did that. Several times. It took a couple of days, but it finally got transferred to the exchange.
That it needed constant manual intervention to make the transaction stick was a concern to me.
So I decided to move the rest of my IOTA onto the exchange while I decide what to do next.
The second transfer though just would not move past pending status. No matter how much I did “Replay bundle”.
At that point I thought that maybe the Desktop Light Wallet might be a better option than the Android Wallet (which is in beta).
So I downloaded the Light Wallet and logged in with the seed. The Light Wallet experience was no better.
I could see my balance, but the transactions would not move past pending. I re-broadcast and I re-attached… I did this every couple of hours as per advice online. Still no joy. By this point my transaction history had 10 or so pending transactions.
I went through the Light Wallet help menus. No solution there. The help menus lead me to the IOTA forum. No solution there. Just the same re-broadcast / Re-attach advice.
At this point my ability to login to my wallet was becoming more hit and miss since most of the time, the public nodes would just time out or give me connection refused errors. This frustration went on for about a week, during which, I tried different internet connections, re-installation of the wallet and even installed the wallet on another computer. The problem persisted.
I went back through the Light Wallet help menus in desperation. The led me to github, where i found numerous posts from people having the same issue.
I came across a couple of posts mentioning resolution to the issue via a site called “IOTASALAD”. Which was basically a list of nodes that could be used in the Light Wallet.
Initially, I was a bit suspicious and there was a warning light in the back of my head, but since by this point I was barely able to connect to other nodes, frustration won over the warnings in my head.
So I tried one of the suggested nodes there. It took a while to log back into my wallet but at least it wasn’t timing out (yet). I left my computer and when I came back found that it had logged in.
Finally! Momentary joy!
I then notice that my balance is ZERO, and I initially think my transaction is finally confirmed and balance has been transferred back to the exchange!”.
Then I check the transaction history and notice over 400 new transactions have appeared. Hmmmm.. This doesn’t seem right. I check the address they’re going to and find that it is not mine! I scroll through the hundreds of pending transactions that I did not do and find 1 which is confirmed.
It only takes one transaction to confirm and just like that, you’re over over $6000 out of pocket. Yes, that’s how much appears to have been stolen from me!
I have only ever entered my seed in the Android wallet and the Light wallet. I work in the IT industry and know full well how to secure my device(s). If my devices were compromised, I would have lost other cryptos as well.
So I am still unsure as to what happened exactly. However, the 400+ transactions which I definitely did not do, are all time stamped in the 30 mins or so right after I used the “IOTASALAD” nodes. So at this stage, until I have new information, my assumption is that those nodes are malicious and have somehow hijacked my wallet seed. Is this possible? If so, how is it that someone can just setup their own node and steal people’s money? Surely this would be a very obvious security hole which would increase exponentially as IOTA grows??
At this point, it seems I can’t login at all using my seed. Neither on the Desktop Wallet nor the Android wallet.
Overall, very upset, very disappointed. Will be sure to give IOTA a wide berth from here on.
ATTENTION: before you comment on this article!
Since IOTA has gone down, and will continue to go down, I won’t waste my time responding to the same stupid arguments calling this a FUD. I already, many times, responded and wasted time on lots of comments, so go ahead and read them all. If IOTA somehow manages to enter again in top 5 coins, I’ll update this article with more stuff. Until then, it’s just another crypto that failed. Cry over our IOTAs if you had some, MOVE ON and stop commenting like a pussy on my blog!
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