IOTA takes a nosedive following Trinity wallet hack

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Although the IOTA Foundation has taken different steps to prevent a further attack, IOTA plunged over 12 percent following the hack.

On Feb. 12, the IOTA Foundation released a statement indicating that it was investigating a "Suspicious situation" with its official wallet, Trinity.

The IOTA Foundation said to be working with law enforcement to further investigate the coordinated attack.

The price of IOTA took a significant nosedive as the "Suspicious situation" was first reported on Feb. 12.

The TD sequential indicator was able to predict that IOTA was bound for a correction on Feb. 12.

Despite the major downturn and the importance of the Trinity wallet hack, IOTA seems to be preparing for an upswing.

On its way down, IOTA could find support around $0.296 and $0.284.Moving forward.

As the IOTA Foundation continues investigating what could have led to the recent vulnerability exploit in Trinity, it is worth noting that this is not the first time that it faces security issues.

In late 2017, several users reported that IOTA's official wallet was unstable allowing tokens to be lost or sent to wrong addresses.

In early 2019, a British hacker was arrested for stealing over $11 million worth of IOTA. According to Tone Vays, a former Wall Street trader and VP at JP Morgan Chase, this type of exploits would likely continue to happen due to the high levels of centralization in IOTA's protocol.