Overview of IoTeX

IoTeX launched as an EVM compatible IoT focused layer 1 back in 2016 and to date there are >230 applications built including DeFi / some GameFi / and 15 native DePIN projects; and the network currently has >30mn in TVL

IoTeX launched a separate computation layer in 2023 which collects raw data from tamper proof devices through an off chain computation middleware; leveraging a network of nodes to receive and process data from real world data publishers. ZK proofs could then be generated and be dispatched to supported chains to trigger behaviors.

w3bstream connected >1.6mn devices with >30 DePIN projects all over the world; and leading DePIN projects including Helium / Helium 5G / Akash / Filecoin / Hivemapper / DIMO / WiFi Maps are already adopting the technology to verify information sent by real world physical devices

Thesis

• DeFi ecosystem kicking off on IoTeX: >15 DePIN projects building on IoTeX now natively; out of which 2 have native tokens on the chain and more projects were expected to launch native tokens on IoTeX including Inferix / Network3 / PowerPod in the coming quarters which could potentially lead to higher “demand for security”

• IoTeX 2.0: founder has been hinting the launch of IoTeX 2.0 and value accrual to $IOTX; and briefly spoke about the importance of the w3bstream middleware layer which has already connected >1.6mn real world devices for >30 leading DePIN projects as mentioned

• value unlocking of w3bstream: monetizing per data emissions of >0.02 USD and w/ 3 to 5 daily emission from the 1.6mn devices (and increasing); annualized top line fee of >35mn; otherwise w3bstream to be valued as an DePIN specific oracle and securing FDV of >10bn (excluding FIL)

Valuation

• layer 1 w/ 500mn FDV as of now seems to be reasonable with conventional DeFi metrics (such as TVL / # of transactions) as of now compared to some of the low float high FDV vapourware which trades at >5bn FDV

• expecting TVL growing as native assets on chain grow given more TGE of DePIN projects; w/ 5 to 10 projects of average FDV of 20mn to 30mn this should at least pump up the valuation to at least >1bn range of the chain itself

• also expecting computation layer being priced into the token valuation depending on how the market values it with (i.e. fees or see it as an oracle); given the current metrics and product market fit w/ strong moat this could add at least >1bn FDV

Catalyst and Risks

• announcement of IoTeX 2.0 which was supposed to happen shortly after Bitcoin halving; but was postponed given current market condition and is expected to happen in May

• launch of Peaq Network might be a risk to IoTeX; but to the upside it brings the market attention to DePIN focused layer 1 or DePIN in general

• staking of $IOTX for w3bstream might already be priced in by the market since it was mentioned in the whitepaper in 2023; but what the market does not know / mislook might be the wide coverage of w3bstream as of now; which might be function of that being a middleware layer