The Tezos crypto project is about to be launched on Monday. Tezos was able to raise $232 million in July 2017. The funds that were raised by Tezos has been called “non-refundable donation”. It has been called not a “speculative investment”. It has even considered the possibility that the token might not be issued at all.
Its goal is to build the network that would issue a new cryptocurrency for its backers. It was one of the largest every initial coin offerings. According to Ryan Jesperson, the foundation’s president, Tezos Foundation plans to transition its network to the mainnet.
This is good news considering delays and infightings. However, Tezos still faces litigations in the US since increased regulatory scrutiny within the industry. There was also a feud between the founders Arthur and Kathleen Breitman. Also, Jesperson replaced former president Johann Gevers when he stepped down in February.
You also have class action lawsuits that have been filed in the US against those people behind the project. The reason for the lawsuit is that the Tezos crypto project violated the securities laws and has defrauded its investors. In February, the US Securities and Exchange Commission has denied David Silver’s request for public information regarding Tezos. The agency says that it could potentially interfere with the investigation that is being done.
In June, Tezos foundation announced that it is going to implement know your customer and anti-money laundering checks for the investors. However, the move was met with negative reactions from the community.
Launching the Beta Net
The beta network was launched by the end of June. It has been called as a “point where great things start”. And true enough, despite the controversies regarding the issues with the SEC, it is now going into the mainnet launch by Monday. The claim is that it is a stepping stone towards fixing issues that have been prevalent within the foundation.
In fact, Vitalik Buterin even called Tezos as a scam last year. He said that “This seems backwards. Why can’t third parties just run a script to scan the BTC/ETH blockchains, see how much everyone contributed, calculate how much XTZ everyone should get, and generate genesis block without Tezos Co involvement? That’s how the Ethereum launch worked”.
FOMO of the Day
Tezos pumped 25% today trading at around $1.62. Tezos has already made 40% gains this month when the rest of the other altcoins have crumbled. Tezos joined the likes of Nano, Maker, Aurora, and MOAC as the only selected few altcoins that have enjoyed double-figure increase.
According to Nithun Eapen who is the Chief Investment Officer at Arcadia Crypto Venture and also a member of the Tezos Commons Foundations, “Tezos a self-ammending ledger, which means that it has a mechanism to adjust itself based on what the community wants or what people want in it”.
Is Tezos going to be a success or will the issues remain even if it is switching towards mainnet by Monday? Since it was structured as a donation and though it has been viewed by contributors as an investment, is this a security or not?