Is IoTeX Worth Investing?

Last Updated August 19th 2021
18 Min Read

The IoT industry is booming. According to reports, there will be more than 50 billion IoT devices in 2022 and over 100 billion in 2025. While this shows great promise for a more connected world, there are seral caveats that still soil the efficiency of the IoT technology. These include security, lack of interoperability, high costs, the barrier to entry, privacy issues and lack of trust.

This is where IoTeX comes into play.

IoTeX is designed to solve IoT’s unique challenges by focusing on interoperability, scalability and privacy protection. IoTeX is the next generation IoTs-focused blockchain platform that supports smart contracts and token incentives to build a robust, secure IoT ecosystem.

In this guide, we are going to look at exactly what IoTex is, how it works, whether it is a good investment and the different ways you can invest in it.

What Is IoTeX (IOTX)?

IoTeX is the next generation IoT-focused blockchain platform that supports smart contracts and token incentives to build a robust, secure IoT ecosystem. IoTeX is building a scalable, private, and exploratory blockchain architecture that supports cross-chain interoperability. 

This technology relies on an innovative, top-down approach that allows you to construct a broad range of blockchains for different use cases with self-specific purposeful features.

IoTeX solves a number of issues that are currently bottlenecking the growth of the IoT sector. These include: 

  • Scalability Problems – One of the main problems with the current blockchain structure is that it can not support large scale industrial adoption. This scenario will lead to poor user experience and higher transaction costs which will limit widespread acceptance. In order to solve these problems, IoTeX has put together a unique IoT-oriented blockchain architecture that focuses on scalability, privacy and interoperability.
  • Interoperability – One of the core problems with most current blockchains is that they were not designed to handle cross-chain interactions and transactions. This means that you could build solutions using different blockchains, but when it comes to interacting with other forms of blockchains or outside the blockchain ecosystem, you will have to use an intermediary. In essence, there is no open platform that can support interoperability. IoTeX aims to solve this problem by creating a “blockchain within a blockchain” architecture that separates data and control logic. This will also lower transaction fees and allow for high-speed transactions.
  • Privacy – It is important to note that not all blockchains are private by default. Many blockchains still store user data in plain text and leave them vulnerable to attacks ( this has been the case with IOTA). IoTeX wants its blockchain architecture to be built from scratch to protect privacy at a protocol level, leveraging on-device randomness and the access control based on ring signatures scheme. This will allow for scalable cross-chain interoperability without sacrificing privacy.

IoTex is brought to you by an experienced team of software engineers, cryptographers and business strategists with a proven track record of execution in building disruptive products and successful businesses.

The team is led by Raullen Chai (CEO), Qevan Guo, Xinxin Fun and Jing Sun. 

In addition to this, IoTex boasts of a strong list of partners and investors that includes Keneti Capital, T Capital and Draper Dragon. IoTex also holds the world record for the most amount of funds raised via their private sale (400M USD).

Read Also: Could IoTeX (IOTX) Be A Millionaire-Maker Coin

How IoTeX Works

Iotex uses a Roll-DPoS consensus mechanism that allows for the high transaction throughput and low latency that is necessary for real-time IoT solutions while also providing a platform that supports privacy protection of data and smart contract security.

At the centre of the IoTex ecosystem is what is referred to as Roll-DPoS (which stands for “ Delegated Proof of Stake”) consensus mechanism. A roll refers to the unique randomness in numbers generated by each IoT device. This allows it to have low latency as it is not dependent on waiting for a fixed block time to verify transactions.

The idea of this consensus mechanism is that the number of votes each node has is proportional to how many tokens they hold, meaning those who own more tokens will have more voting power. At the same time, it does away with the need to store and process large amounts of data which other consensus mechanisms such as proof of work rely on.

IoTeX also relies on a concrete technology that can be applied in a broad range of industries. It is based on the idea of side chains, which enables users to transfer data and value between each other using token transfers instead of having the information live on one chain.

This brings about two key benefits. Firstly, it means that devices that are not connected to the same blockchain ecosystem can still interact with each other. Secondly, it allows for data to be stored and processed off-chain, which saves on storage space and computing resources that are needed.

IoTex Price History

IoTex started trading in 2017 and had a relatively successful year, hitting an all-time high of $0.066 in June 2018.

It then struggled to find support at this level and gradually declined until August 2018 where it reached a low price of $0.0097. After that, it slightly rose to $0.0189 towards the end of October, then again dropped to as low as $0.0019 in mid-March 2020. 

This means that IOTX struggled for most of 2019 and 20202 before finally gaining momentum at the start of 2021. This momentum was actually market-wide as most cryptocurrencies were blossoming and hitting new all-time highs. 

For IoTex, this presented an opportunity to shoot at the $1 mark in 2021. Although it failed to reach that level, the coin has made significant progress this year. In fact, IOTX has gained more than 1135% since the start of the year. 

At the start of January, IoTex was trading at around $0.007, but by the end of April, it had reached $0.07839. Unfortunately, it suffered a huge decline and stumbled to $0.01653 towards the end of June. 

However, this time around, the coin did not stay down. It drastically rose against expectations to reach its current all-time high of $0.148. That is a more than 795% increase in less than two months. And while IOTX has lost more than 40% of its peak value, it shows strong promise of finishing the year on a bullish note. 

However, whether Iotex can get back to its previous highs will likely depend on the upcoming developments and partnerships more so than anything else. With this in mind, it’s encouraging to see that there are already many partnerships in the pipeline.

For example, Iotex recently announced a partnership with XYO,  a technology that tries to connect blockchain and the physical world. Through this partnership, the companies will give developers tools and infrastructure to enable them to easily create new blockchain applications that are focused on IoT. This way, IoTex has managed to successfully marry IoTs, blockchain and privacy. 

IoTex Price Predictions for 2021 - 2022

There are many factors that play a role in determining the future price of IoTeX. Before we dive into the price predictions, let’s quickly go over some of these factors. 

The IoT is an industry that is set to experience exponential growth, and with it, there will be more customers who may either need a solution for their business or want to earn passive income by providing solutions on top of the IoTex platform. Currently, only 10% of all devices are connected to the internet.

With IoTex, there will be a huge increase in adoption, which will result in a growing demand for IoTex tokens (IOTX). This should mean that the price of IOTX tokens will rise with time and could see them being listed on bigger exchanges later this year which will further add to its growth.

This is compounded by the fact that all IoT solutions must make use of a blockchain. This means that they will have to either create their own or find one that supports their needs and completing transactions in real-time (as the delay between nodes can be detrimental for certain applications).

As such, IOTX tokens will serve this purpose and become more valuable as time goes on.

The demand for IoT devices is expected to increase from 50 billion in 2022 to approximately 100 billion by 2025.

This presents a huge market opportunity for IoTex, especially since they are targeting the industrial sector first (where computing power and storage space are not an issue) before moving to the consumer market. This will also have a positive impact on their token value as they begin operating in a much larger industry.

With only 4.5 billion tokens being circulated, IoTeX has an extremely low supply of tokens to be used on its platform, which will further fuel price growth over time because it makes each token more valuable as there will be less of them.

IoTex is also moving towards releasing its own IoT hardware. This will ensure that the platform is more secure and scalable because it enables memory to be stored locally at each device itself, rather than having a central database from where all data must go through before getting stored on the blockchain.

Like many other cryptocurrencies, the future price of IOTX tokens will be determined by a combination of market and technological factors. It’s somewhat hard to say what will have a greater influence on the price in the long term, but IoTex is already developing solutions that are being actively used with many more projects set to become a reality in the near future, which will have a huge impact on the value of IOTX.

Based on predictions from Wallet Investor, IOTX might start August at slightly the same price as it is now. That is around $0.0863. However, there will be a bit of a consolidation period with the price struggling to reach $0.09. 

IoTex will finally be able to achieve that milestone towards the end of October when it hits $0.0925. 

There won’t be much change throughout November and December as IOTX fluctuates between $0.09030 and $0.0925. By the end of 2021, Wallet Investor predicts that IoTex will be trading at $0.0923. 

Unfortunately, according to Wallet Investor, the IOTX token might not be reaching its all-time price again this year. But 2022 predictions look better, with the price starting at around $0.0925 and ending 2022 at $0.1258. 

As per IOTX price prediction 2022, the IoTex (ITOX) Coin will be trading at $0.139 by the end of 2022.

Different Ways to Invest in IoTex

If you are looking to invest in IoTex, there are several ways you can do so. These include:

  • Buying and Holding
  • Trading
  • Staking

We are going to take you through how to go about each of these methods in order to decide which one works best for you.

Method 1: HODLing IOTX

Buying and holding IOTX gives you the opportunity to profit from IoTex’s growth as a platform.

The idea of this method is that you buy tokens now when it is still relatively cheap in comparison to its future value. You will then hold onto them until their price goes up significantly, allowing for you to sell them for a profit.

If you HODL onto your tokens, it is also likely that in the future, you will get free IOTX as the project’s team regularly do IOTX airdrops (Note: This does not mean you are guaranteed to receive free tokens).

We recommend HODLing if you are new to investing in cryptocurrencies and want to learn. It also allows you to potentially make a large profit, although it does come with higher risk as the price could fall significantly if IoTex and its technology fail to garner enough support.

In order to HODL IOTX, you will need a wallet where you can hold them. For this, we recommend using the official IoTeX wallet, known as ioPay. 

You can buy the tokens from any exchange that supports it then transfer them to your wallet for holding. 

Method 2: Trading IOTX

The second method of investing in IoTex is through trading. This can be done on any exchange that the token is listed on.

Trading IOTX means you buy and sell it according to the market price and demand at any given moment.

This method offers investors with high risk, high reward options as fluctuations in value can lead to a high profit if things were timed correctly but also a loss of your investment if you got it wrong.

The risk of this method is that you have to monitor the market closely in order to time your buy and sells correctly at what is deemed by the community or experts as high price points. 

You also need to regularly research how secure each exchange you use are, be wary of scams and phishing sites, and ensure that you transfer your money and tokens securely.

If you are just starting out, trading might not be ideal for you since it is much more complicated than HODLing. 

Check Out: Cryptocurrency Investing vs Trading: What's the Difference?

Method 3: Staking IOTX Tokens

Another option for you to invest in IoTex is through staking. This can be done on the official wallet, which you can download from their website.

Staking means that you use your tokens as collateral to secure a stake and work with the community to verify transactions on the blockchain, and in return, you will be rewarded.

The reward is calculated through a staking calculator, and it is based on the number of tokens you have, how long you leave them on the staking wallet, and how many transactions are verified throughout that time period.

You can also use a staking pool to stake IOTX tokens.

Pooling gives you the chance to increase your returns as you will be working with a group of IoTex holders, and it also comes with less risk due to diversification.

Is IoTeX A Good Investment?

IoTex builds upon the increasingly popular IoT technology. With billions of devices expected to be connected in the coming years, IoTex could be a potentially profitable investment.

IoTex’s token (IOTX) is already listed on various exchanges, and growing demand for its technology could lead to a big push in price.

However, it should be noted that the development of IoTex has just started, with much more work needed before the team can deliver what they have promised.

If you do decide to invest, we recommend that you leverage the knowledge of experts in this field to help you understand IoTex’s business model and the technology behind their project.

In particular, we believe that IoTex is a good investment due to the following reasons:

  • IoTex is being developed by a highly skilled team.
  • IOTX token will be used to exchange for IoT assets, including data and computing power that can be utilised to build on the Internet of Things ecosystem, thus creating demand for the token.
  • Evidence of partnerships with companies such as GM or Intel, as well as an impressive list of advisors.
  • IoTex’s technology is set to boost the performance and scalability of IoT applications, making it more desirable for developers and businesses.

In terms of IoTex’s downsides, there is a chance that their team fails to deliver on what they have promised, and as a result, the value could fall significantly. But charging from how far they have come, it is unlikely that this will happen. 

IoTex also faces stiff competition from companies such as IOTA, which are developing similar IoT solutions.

However, in our opinion, the team behind IoTex is better suited to create a system that can be deployed on a large scale and have a wider appeal.

Overall, we believe that IoTex could become one of the most interesting investment opportunities of 2021 and beyond.

Conclusion: So, Should I Buy IOTX?

IoTex’s technology could be the missing link to a successful Internet of Things ecosystem.

Its advanced consensus algorithm, which will marry DPoS and PBFT protocols, offers unique features for IoT applications. It will not only speed up transactions but also reduce their costs by distributing them between a very large set of voters.

The IoTex team also looks solid, with experience in both IoT and blockchain technologies. We believe that the project will garner enough interest for it to attract talented developers.

IoTex has already partnered with companies such as TrustWallet, as well as launched its own incubator program – which could help the project get off the ground and multiply its initial success.

For these reasons, we believe that IOTX could be one of the most interesting buys you will make as a crypto investor.

It should be noted, however, that IoTex still has to prove its worth in the industry. The project is still in an early stage, and it won’t deliver on its promises for a few years.

Remember that if you want to invest in IOTX, you should only do so if you already have a solid understanding of how the Internet of Things ecosystem works and how blockchain technology can be used to solve its problems. 

If you don’t, we recommend that you spend time learning about these topics – there are plenty of sources where you can do so. We also recommend that before purchasing any tokens, you take a good look at IoTex’s white paper to make sure that you understand the project and are not just investing based on hype.

Finally, make sure to use a well-structured investment strategy. Don’t put all your money into IOTX if you are unsure about this token or simply want to try crypto investments out for the first time: start with small amounts and invest only what you are willing to risk.

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