IOTA Price Slides due to Leaked Conversations

IOTA Price Slides due to Leaked Conversations

Not so long ago, Sirin Labs announced that it would be ditching IOTA’s Tangle distributed ledger technology and would be going for Ethereum blockchain instead.

The news caused quite a dip in the prices of IOTA but it was nothing compared to how much the leaked conversations between Dominik Schiener and Sergey Ivancheglo could potentially hurt the cryptocurrency’s stance in the market. As per the transcript, Sergey said:

“I inform everyone that I [no] longer trust Dominik Schiener and I think he should quit the IOTA Foundation for the better future of IOTA”

IOTA Foundation has been involved in controversies earlier as well. In April, David Sønstebø, a co-founder of the company, had accused Per Lind, a former employee of the company, of deriving personal gains using the company brand. He had been pretty aggressive going as far as calling Per a “charlatan” who “couldn’t handle a calculator if his life depended on it.”

Why Sergey said so is unclear and isn’t brought up later in the transcript. The rest of the transcript talks extensively about how he wishes to remove Dominik from the project.

Also Read: Sirin Labs Leaves IOTA, IOTA Eyes North American Expansion: IOTA in Jeopardy?

IOTA Foundation responded to the leak by saying:

“The IOTA Foundation is a young institution. Our team has grown from a handful of members to almost one hundred in less than a year. We are a very well-funded startup at the intersection of one of the most innovative areas of technology and a sometimes toxic market. As we are just learning to walk, while fostering prominent corporate and social partnerships, our exposure to the global spotlight has forced us to quickly learn to communicate like a publicly listed company.”

The company further goes on and says:

“Anyone who has been through a heavy growth phase similar to the IOTA Foundation’s, understands that there is a significant emotional journey involved. We have seen friends turn into founders, and founders become key decision-makers in a multi-billion dollar project faced with countless challenges.”

The company then explained what led up to the event:

“When the IOTA Foundation was registered, for reasons of timing and simplicity, two of IOTA’s founders (Serguei Popov and Sergey Ivancheglo) decided not to join the Foundation’s official Board of Directors. In March 2018, David Sønstebø suggested that we correct these omissions, and invite the “missing” founders to the official board. A unanimous decision was made by the current board (Dominik Schiener, David Sønstebø and Ralf Rottmann) to honor the initial founders by nominating them for board membership. This was however contingent upon some changes to the IOTA Foundation statute. The current IOTA Foundation statute grants the right to nominate board members exclusively to Dominik Schiener. It also allows board members to delegate their voting rights. In fact, there are a number of other minor “oversights” that the board has agreed to address with the Supervisory Board. These stem from a lack of experience in setting up a non-profit charitable crypto-related foundation and extreme time pressures at the time of registration.”

While IOTA cleared the air up pretty well, the prices have already been affected. It is difficult to say what would happen to the prices of the cryptocurrency in the future.

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Syed Ali Mudassar
It was when he was pursuing his graduation in Computer Science that he found his flair for writing about new and existing technologies. He likes researching about technologies and how they could help people. Currently, he works as the Content Manager at CoinFrenzy, a leading blockchain news, and media publication website.