Leading cryptocurrency exchange Binance has issued a warning regarding the popular altcoin IOTA (IOTA). Why is the supply of IOTA changing? Here are the details…
Binance Warns Altcoin Investors: IOTA’s Supply is Changing
According to the announcement, the total and circulating supply of IOTA (IOTA) tokens will be increased. More information and details about this change can be found in the official statements from the project. Binance will release additional news to inform investors about what these changes mean and the potential risks.
In the announcement, Binance highlighted that IOTA is transitioning to a new tokenomics model. The exchange has informed users about these changes. With the new model, IOTA’s total supply and circulating supply will show a significant increase. Binance also announced that a risk warning banner and popup will be displayed on the trading page for IOTA.
IOTA Announces New Tokenomics Model: “IOTA Rebased”
In its official statement, the IOTA team announced that they will be adopting a new tokenomics structure called “IOTA Rebased.” With this new model, IOTA plans to offer a sustainable token economy with a 6% annual inflation rate (767,000 IOTA per block). Accordingly, 767,000 IOTA will be produced per epoch with a 6% annual inflation rate. The new model will provide staking rewards and keep transaction fees low, with an estimated transaction fee of 0.005 IOTA.
Altcoin IOTA’s 2024 Price Performance and Analysis
IOTA caught attention in 2024 with a price increase of over 250% as of November. This surge gained momentum as IOTA broke its long-standing downtrend and began to rise, attracting the attention of both large investors (whales) and traders. However, IOTA is currently testing a strong resistance level. According to technical analysis, IOTA is facing significant resistance around the $0.36 level. This resistance is not only at the horizontal level but also at the 200-day Exponential Moving Average (EMA) level.
If IOTA breaks this resistance and closes the daily chart above the $0.45 level, it could target $0.70, marking a 50% increase. However, IOTA’s Relative Strength Index (RSI) is currently in the overbought zone, which could lead to a short-term price correction.
On-chain Data Shows Challenges for IOTA
On-chain data suggests that IOTA may face a challenging road ahead. In the last 24 hours, 3.81 million tokens were moved to exchanges, indicating that large investors and institutions are moving their tokens to exchanges. Such actions are generally seen as signals for potential sell-offs and price declines. Additionally, it should be noted that most traders are opening short positions, which could suggest a negative market movement. Based on this data, it may be difficult for IOTA to rise in the short term. As reported on Kriptokoin.com, future price movements will be determined by the news of the week.
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