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IOTA price analysis: IOT/USD crashed, down 17% on a daily basis as Sirin Labs prefers Ethereum over IOTA

  • IOTA's downside momentum is gaining traction.
  • Sirin Labs dropped the plans to build blockchain smartphone on IOTA's technology.

IOTA is changing hands at $0.7336, after falling to the lowest level since November 24 at $0.6770. The coin is the worst-performer among top-10 cryptocurrencies, down nearly 17.5% since the start of the day. The currency has lost over $800M of its value since July 29 and retreated from the 9th place. It has a market capitalization of $2.1B and the average daily trading volume of $99M. 

Sirin Labs, the manufacturer of Solarin Android smartphone, changed its mind about building a blockchain phone on   IOTA’s Tangle distributed ledger technology as was previously announced in the white paper of the project and chose Ethereum blockchain instead. This news might have triggered the decline that was intensified by technical factors.

“We are not working with IOTA. We considered the option and decided to part ways,” Nimrod May, chief marketing officer of Sirin Labs, commented in the interview with ETHNews.
“At launch, we are going to use the Ethereum blockchain. The Finney Phone will work through complete nodes that are hosted on Sirin Labs. Our plan since the release of our whitepaper has always been to migrate the SRN token and Sirin Labs ecosystem to a next-generation blockchain.”

IOTA broke below $0.7735 (August 3 low), which attracted fresh selling interest with the next aim at $0.666, followed by $0.5721. On the upside, the bulls have to move the price above $0.8000 to mitigate the bearish pressure, though the ultimate goal is at $1.0.

IOT/USD, the daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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