Gavin Andresen, the founder and the first original member of the Bitcoin Foundation in 2012, has mercilessly chastised the bias that the technical progress of a project is a price catalyst for the token behind it.
Guess, which project was down?
Mr. Andresen published two price charts for high-liquidity altcoins. It doesn't take a seasoned blockchain analyst or trading geek to figure out that, in general, both charts looks similar.
Mr. Andresen has revealed one important piece of information: one of the charts demonstrates the price of the IOTA token (MIOTA) while the other belongs to ZCash (ZEC).
But, the point is that the IOTA protocol was down for about a month in February and March of 2020. After a devastating hack, all operations through the Tangle data structure were halted.
The ZCash protocol experienced no technical issues and functioned as intended for the whole period in question.
Does technology matter?
Mr. Andresen used this comparison to show that the technical aspects of a product with a popular token only slightly affect its price.
He admitted that the markets shrugged off IOTA's failure to perform its operations. For him, it is the best proof of the highly speculative nature of cryptocurrency price moves. In conclusion, he identified two real catalysts of these moves:
It is all day traders and bots.
It should be remembered that IOTA switched off all operations conducted through the Tangle network on February, 13 after the attack that resulted in $2M in losses.
The IOTA Foundation released a migration tool to mitigate the aftermath of the attack. Also, IOTA founder David Sonstebo decided to spend a significant share of his crypto to cover the losses of victims.