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

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

According to reports from ETHNews, Sirin Labs, the company behind the upcoming blockchain-based mobile phone Finney, has chosen the Ethereum blockchain over IOTA’s Tangle distributed ledger technology.

Moshe Hogeg, the CEO of Sirin Labs, told ETHNews:

“We’re not with iota, we looked into it and decided to go a different route.”

Sirin Labs’ Chief Marketing Officer, Nimrod May, clarified Moshe’s statement by telling the public that at the launch of FINNEY, they would be using the Ethereum blockchain. However, this Ethereum blockchain that they would be using would be a private Ethereum blockchain and not the main Ethereum blockchain. He said that in the beginning, “the FINNEY will process transactions through a series of complete nodes hosted at Sirin Labs.”

However, Ethereum would not be the forever home for Sirin Labs. May said:

“Our plan since the release of our white paper, has always been to migrate the SRN token and Sirin Labs ecosystem to a next-generation blockchain.”

The plan is pretty reasonable since moving everything to a FINNEY-specific blockchain would allow the company reduce the transaction costs and enable micropayments for users who wish to make on-phone purchases. The native blockchain, however, wouldn’t be available for a long time.

Following the news of Sirin Labs ditching IOTA for Ethereum, IOTA was battered by short sellers and lost 12% value in no time. On Thursday, the price of IOTA rose from 0.78 USD to 0.96 USD for a few hours when the news of IOTA Hub’s launch. The cryptocurrency has been pivoting around the same price ever since.

Sirin Labs would be competing against a lot of blockchain smartphone rivals including Zippie (which was created for a team which had worked with Nokia and Jolla previously) and BitVault (which was developed by the Irish company Embedded Downloads). Zippie managed to raise 30 million USD in its ICO in February, while BitVault has already shipped a few units for evaluations in military applications in various parts of Asia.

Recently, HTC also unveiled its plans of getting on the blockchain bandwagon with the HTC Exodus blockchain smartphone. The news came out in May and the smartphone is expected to be launched by the end of 2018. HTC Exodus will cater to most of the needs of cryptocurrency users and would launch with support for Bitcoin, Ethereum, Dfinity networks, and Lightning Network. Eventually, however, HTC plans to support the entire blockchain ecosystem along with plans to create a native blockchain network.

Also Read: Latest Developments: IOTA Launches Hub and MIOTA Listed On Upbit

While the news may be disheartening for the fans of the cryptocurrency, IOTA is pretty optimistic and is moving forth with all its might.

As of now, IOTA is targeting North America to be the next center of focus. Wilfried Pimenta tweeted about the company needing a new Business Development Manager for the West Coast.

Building up IOTA’s coverage of the North American market would help the foundation cater to the interests of the global stakeholders and partners based in the region better. The foundation’s business development department is responsible for “catalyzing awareness in key geographies and industries” and “developing co-creation ecosystems to host future IOTA based innovation.”

Moreover, expansions are always good for businesses. For IOTA, the expansion might be the turning point in the prices of the cryptocurrency. It certainly has the potential to perform a lot better than it is currently performing.

While the news about Sirin Labs ditching IOTA’s Tangle distributed ledger technology to go for Ethereum’s blockchain technology made the prices of IOTA drop considerably, the cryptocurrency has recovered a lot when IOTA launched Hub.

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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.