The co-founder of the IOTA Foundation has stated that Digitial Coin Initiative (DCI) ran the biggest misinformation campaign in the history of cryptocurrency against their organisation. He has also discounted the entire story, calling it “a storm in a shot glass”.
Speaking to The Market Mogul, David Sonstebo refuted claims that DCI found vulnerabilities in the IOTA system as well as saying that the misrepresentation of DCI’s report would “undoubtedly be considered the largest FUD [Fear Uncertainty Doubt] campaign in crypto history.”
David Sonstebo, who co-founded IOTA in 2015, said in an email:
“The content of these emails unequivocally prove what we have said all along: DCI never uncovered the vulnerabilities they claimed to have and the entire story was a storm in a shot glass.
“As for IOTA token holders, there is certainly nothing to worry about. Even the unproven hypothetical vulnerability was resolved back in August 2017. Furthermore due to the misrepresentation by DCI’s report IOTA faced what would undoubtedly be considered the largest FUD campaign in crypto history.”
Last weekend, the full chain of emails for the entire exchange between IOTA’s David Sonstebo and Sergey Ivancheglo as well as DCI’s Ethan Heilman was leaked to the press. According to the emails, Heilman had said that following a successful attack on IOTA, DCI had found serious “cryptographic weaknesses” with IOTA’s hash function: the mechanism which enables signatures and authenticity checks in blockchains.
This all took place during the summer of last year and IOTA changed their hash from their in-house function, called ‘Curl’, to a vetted alternative. However, the controversy lies in how either side reacted to the issue and whether IOTA was trying to cover up criticism or if DCI blew the issue far out of proportion.
IOTA, which stands for the ‘Internet of Things Application’, claims it has already facilitated $10bn worth of transactions since it was founded in 2015. Last week, the German car producer, Volkswagen (VW) announced a cooperation agreement with the Foundation.
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