Bitfinex is adding IOTA trading
Image: This time Bitfinex is the first exchange to list a new token.
So whats today’s hype about?
IOTA is a token that is meant to work with the IoT. It promises zero-fee transactions and infinite scalability.
So far IOTA hasn’t been traded on any exchange. There was p2p trading with escrow going on on the IOTA Slack chanel, the channel is now closed to new subscribers though and IOTA will be listed on Bitfinex in a few days. Unless you already are in that channel you won’t be able to buy IOTA until it launches on Finex.
On Tuesday, June 13, we will be adding support for IOTA (IOT) exchange trading through IOT/USD and IOT/BTC pairs. Margin trading for IOT pairs will be enabled in the coming days as the order book develops suitable liquidity.
Bitfinex has followed IOTA since its earliest stages of development and supports the project’s innovative approach toward a blockless distributed ledger. We believe the underlying technology can lead to a new ecosystem of applications built upon this decentralized and self-regulating peer-to-peer network.
So, IOTA is not on a blockchain, similarly as Ripple although the technology underneath is different. That’s how it can scale and all the rest of it - it is not a blockchain. IOTA uses what they call Tangle:
In the Tangle, every single transaction forms a new block and is essentially verified by itself: In order to successfully conduct a transaction, you first have to verify two randomly chosen transactions is the network. This is done with help of a very simple version of proof-of-work, therefore one could argue that transactions aren’t zero-cost. Yet, the transaction costs are essentially not existent, as the needed Proof-of-work is so low that every single device is able to independently carry it out. source
With this kind of decentralized Proof-of-work the scalability is also naturally growing as the network gets used more. This is good for the network effect of money that is needed for micropayments.
IOTA is premined. There is no mining at all. 2779530283277761 IOTA were created, that is more than 2 · 10^15. Hint: It’s a lot.
The team behind IOTA has formed a foundation in Berlin. Names: Dominik Schiener, David Sønstebø, Sergey Ivancheglo and Sergei Popov. The development of IOTA was funded via ICO from back in 2015.
With this type of coin that had a big ICO and OTC market and is premined it is expected that early adopters will cash out at the exchange listing launch, so don’t rush with your purchase.
After that, a reasonable amount of hype and “potential”-buying is probably going to happen.
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Written by KarlVonBahnhof
KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.
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