When you ask crypto investors what they have their eye on, you’ll get an entire list, and most of them include IOTA. However, some seem to think that IOTA’s future is uncertain.

Earlier today cryptocurrency hedge fund Multicoin Capital, based in Austin, Texas released their analysis of IOTA. While the analysis was primarily in regards to the value of the currency, it also explored what Multicoin Capital sees as the currency’s major flaws.

At the time of this writing, the IOTA price is $2.51. In December of 2017, the price was over $5. Since the Multicoin Capital analysis was released today, they believe that IOTA is overvalued in the $2.50 range which is approximately half of what it was just a month ago.

Why do they believe it’s overvalued? The answer is quite simple. While IOTA has plenty of potential in the internet of things, at this point IOTA is not being utilized on a large scale for any singular purpose other than investing. The creators of IOTA didn’t intend for it to simply be a store of value, the technology behind it is all about function, and the world hasn’t found a place for IOTA yet.

Cited Concerns
The analysts at Multicoin Capital examined IOTA thoroughly. While they offered criticism, they also praised the developers for things such as the currency’s DAG base, the lack of fees, and IOTA’s scalability.

One of their primary concerns is the fact that the IOTA Coordinator is centralized. While the currency itself is decentralized, the Coordinator that keeps it safe from attacks is not. The actual level of safety provided by the Coordinator has not been verified by an outside party because it’s closed source.

Another concern voiced by Multicoin Capital ties to the current lack of utilization faced by IOTA. As mentioned, the world hasn’t found a specific place for IOTA yet. One of the reasons for this is that present IOT devices require hardware upgrades to use the IOTA network. Their analysts see this as one of the most significant problems for the future of IOTA.

While other concerns were expressed by Multicoin Capital in addition to those covered here, the final factor against IOTA that will be discussed in this article is its software problems. These issues were discovered at the MIT Media Lab.

To sum up the software problems simply, IOTA was developed with vulnerabilities. The development team knew about them, but the public was not aware until the discovery at the MIT Media Lab. Even after the software vulnerabilities were discovered, it took months to get an official statement from the IOTA team on the issue.

The analysts at Multicoin Capital have strong opinions about IOTA. While they are concerned about the future of this cryptocurrency, they also want to see it reach its potential. Like many others, they want to see solutions to a few problems before they dive in.