●IOTA price shot up from $0.174 to $0.228 in just 60 minutes on Wednesday.
●The blockchain company announced that its DLT Foundation has become the first of its kind to be registered under the DLT Foundations Regulations of Abu Dhabi Global Market (ADGM).
●The $100 million seed fund will be used to nurture the IOTA ecosystem and accelerate the growth of the IOTA protocol.
IOTA price has rallied unexpectedly in the past 24 hours, becoming the highlight of the week. IOTA is a novel variation of blockchains designed to conduct faster transactions, and it seems to have made a splash in the Middle East by becoming the first in many ways.
IOTA In Abu Dhabi
In a press release on Wednesday, IOTA announced that its plans for establishing a new foundation in Abu Dhabi are now being turned into a reality. The company registered the IOTA Ecosystem DLT Foundation as the first foundation under the DLT Foundations Regulations of the Abu Dhabi Global Market (ADGM).
This foundation is set to be seeded with $100 million in IOTA tokens, which will be vested over the next four years. As noted by IOTA,
“This funding is earmarked for nurturing the IOTA ecosystem and accelerating the growth of the IOTA protocol. This includes collaboration with institutional investors, governments, and academic institutions for the tokenization of real-world assets and bringing them on-chain, thus bringing billions of dollars into the UAE’s virtual assets space.
Abu Dhabi, Dubai, and other parts of the United Arab Emirates (UAE) have been both crypto-positive and vigilant, making their approach much more sensible than other top countries, such as the United States, where the Securities & Exchange Commission (SEC) is running a regulation-by-enforcement strategy.
IOTA price makes a splash
IOTA price reacted very positively to the news of the IOTA Ecosystem DLT Foundation. So much so that within the hour of the announcement, the token’s value surged by more than 30%. Up from $0.174, the cryptocurrency is presently trading at $0.228.
The sudden demand was met with a substantial increase in trading volume as well. On Binance alone, the hourly trading volume of IOTA increased by 20,927% from merely $22,000 to $4.62 million in inflows. But this was followed by $4.81 million worth of outflows in the very next hour. This shows that while investors might have poured into the asset, traders and scalpers did not wait too long before booking profits.
IOTA/USD 1-hour chart, Source: TradingView.
Given that the news is still fresh and will make the rounds for a while longer in the crypto circuit, IOTA price could see some further price strength. The current target is $0.240, the breaching of which would warrant caution, and profit-booking could introduce corrections into the market.
