Weiss Ratings: “IOTA destined to fall by the wayside” – Schiener counters

  • IOTA co-founders Dominik Schiener and David Sønstebø have rejected Weiss Ratings’ claim that the project is “destined to fall by the wayside”.
  • IOTA is currently in a phase of technical maturity, adoption and progress. Moreover, the IOTA Foundation is not running out of money.

It was only at the beginning of May that the controversial rating agency Weiss Ratings published an updated ranking of the “Top Coins” in the crypto-space, in which it ranked IOTA third behind Bitcoin (BTC) and Ethereum (ETH). At the time, IOTA received a very good B+ rating in the ranking in the area of “technology and degree of adaptation” and a D- for “market performance”. However, this opinion seems to have changed now.

Via Twitter Weiss Ratings wrote that IOTA is running out of money because there are no commercial applications for the Tangle. Based on this, the rating agency concluded that IOTA could fall behind in the race with other projects:

#IOTA is at risk of running out of cash, exacerbated by lack of commercial use cases of #Tangle. As second layer apps improve, the ever-growing #crypto community is ditching protocols it doesn’t want/need. Maybe IOTA is one of those projects, destined to fall by the wayside?

IOTA co-founder Dominik Schiener reacted to the serious accusation and set the record straight that IOTA is one of the few projects that is financed by state subsidies and companies. Schiener also confidently explained that IOTA is currently in a phase of technical maturity, adaptation and progress.

Umm what are you talking about? […] There is more tech maturity, more adoption and more progress than ever. We are one of the only projects which gets funding from government grants and corporations. Stop the attention grabbing headlines and get your sources right.

Asked whether the IOTA Foundation deserves the state funding, whether this could be audited and whether he “and David [Sønstebø] would become filthy rich from this government funding”, the IOTA co-founder wrote that all grants are to be audited by external bodies:

As an innovation leader in Europe, I certainly say we deserve to get grants. There is a below 7% success chance usually. And yes, everything is fully audited (by externals ofc), showing clearly how and that the money was used in achieving the milestones of the grant.

In addition, David Sønstebø also took the floor. In his response to the tweet from Weiss Ratings, he addressed the supposed origin of the statement. This is presumably an article published on CryptoBriefing, in which the author Anton Tasarov calculated that the IOTA Foundation will run out of funds soon. However, as Sønstebø discussed in his tweet, all claims from this article have already been refuted:

Your account has been hacked I presume. Hopefully you get control back ASAP. As for the FUD piece by Anton of CryptoBriefing: it has been debunked ad nauseam, the guy couldn’t even do basic arithmetic, thus calculating that IOTA Foundation’s runway would run out 5+ years early 🙂

About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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