Wow I've heard a lot about IOTA recently, but not a single source gave the impression that it might be a fraud. I think the power of blockchain technology is that it is incredibly stable and virtually unfuckable, and replacing it with one that is broken does seem a bit fishy. But hey, time will tell I guess.
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It´s probably a legit project but I´m still suspicious about it as the were not really honest about the Microsoft partnership and their behavior on social media is questionable as well imo...