IOTA (MIOTA), the officially unofficial cryptocurrency of the Internet of Things (IoT), has been having a rough go of it. While a lot of popular coins have been able to (at least somewhat) bounce back from the early-to-mid-January cryptocurrency market crash, this one hasn’t had the same luck. On top of that, this week there have been a few incidents regarding the IOTA wallet: over $4 million stolen from MIOTA holders’ wallets from malicious online seed generators has shaken the community, and there have been reports of predatory fake wallets floating around online.
Sure, this coin’s price path is on a downswing – but the die-hard investors that make up the MIOTA community will tell you all day that this is a buy-and-hold coin. To a lot of people (and top companies, like Bosch) are putting a lot of faith and funds into this project. Meanwhile, we have been patiently waiting for this digital currency’s price to make a reversal.
Bosch NA AMA soon about Tangle and XDKhttps://t.co/7G1DizYl8j
— IOTA (@iotatoken) January 25, 2018
If you are planning on increasing your IOTA coin supply during the current dip in its price, you are going to want to avoid risking your investment by signing up for the wrong wallet or inadvertently hand your secure wallet information to malicious actors.
But don’t worry – it’s easy.
Just be careful of clicking on a fake IOTA wallet
When you set up an IOTA wallet, make sure that you are downloading the official one. It is downloadable from Github – and the setup process isn’t quite as easy as other cryptocurrencies are offering these days. Nevertheless, it is a secure one if you can set it up properly.
There have been reports of predatory ads on the top of Google search results that claim to be links to an “official” wallet for MIOTA coins. They, obviously, end up not being the real deal – and some of the more gullible among us have fallen prey.
Just earlier today, reddit user nshung saw another one and warned the community.
Just be smart about the (very obviously) misleading links you click on.
And you’ve probably heard about the missing $4 million
Earlier this week, news broke that around $4 million was robbed from various IOTA wallet addresses from a number of users. The theft was well-planned, and wasn’t a hack in the traditional sense. People actually were falling for online trickery.
You see, in order to establish an IOTA wallet, you must generate and write down an 81-character code called a seed. It’s a mixture of 9s and letters. It is essentially a user’s login and password – and whoever has the code has access to the contents of the wallet.
Don’t use third-party seed generators, guys
Rather than following the somewhat difficult instructions on how to generate a unique seed, a lot of IOTA wallet wannabees instead just googled it – and decided to let a third party generate a code on their behalf.
Well, can you guess what happened? People picked the wrong seed generators. They picked malicious seed generators, and basically gave them the drivers keys to each of their individual MIOTA wallets. All the malicious actors needed was their seeds, which the bad guys generated for them – so they already knew them. That’s how they siphoned so many millions of dollars’ worth of MIOTA coins into their own wallets.
Whenever you are setting up any sort of online cryptocurrency wallet, or even just opening an account on a cryptocurrency exchange, just use common sense. It’s easy to verify that you are on the correct site – and try to only use official or well-reviewed wallets all the time.
Be careful out there, IOTA investors.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.