IOTA drops 15% following clarification of Microsoft collaboration misunderstanding

The price of cryptocurrency IOTA has retreated to below  $4.20 per token as of press time, after breaching the $5 level to an intraday high of $5.03 during yesterday’s trading session. The drop follows the recent clarification that IOTA’s collaboration with Microsoft is not an official partnership.

The so-called ‘IOT cryptocurrency’ failed to sustain its momentum from earlier this month and has been overtaken by Litecoin, now the fifth largest virtual currency by market capitalization.

Price movements of Litecoin and IOTA

Litecoin considered the crypto market’s silver to Bitcoin Gold, boasts a nearly $4 bln trading volume in the past 24 hours. The digital currency is trading at around $300 as of press time.

IOTA, meanwhile, has registered a 10 percent price loss on a trading volume of just slightly below $500 mln over the same period.

More than 40 percent of the IOTA transactions were conducted on the platform Bitfinex, which was the first major virtual currency exchange to support the IOT cryptocurrency.

The other key IOTA trading platforms are Chinese exchange Binance, which accounted for around 25 percent of the total volume traded, and South Korea’s number two cryptocurrency exchange Coinone, which conducted 12-14 percent of the total transactions.

The IOT cryptocurrency has also registered a major rally of its own just recently. In just over a week, IOTA’s price increased by about 450 percent after the announcement of its Data Marketplace, which misleadingly seemed to indicate a partnership with Microsoft. The reaction to this news resulted in a new record price peak of $5.55 on Dec. 6th.

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