Understanding the consequences, which led to the delay of the Tezos Network launch
The cryptocurrency space seems to be balancing itself on the competitive edge. Any particular project, when is put forth before people, makes decision making for the investors all the more difficult, due to manipulations that happen in the cryptocurrency space in order to raise a huge amount of funds. According to statistics since 2011, almost 980,000 Bitcoins have been stolen which would have been worth $5 billion today. The Initial Coin Offerings that the Blockchain Technology has spurred, into the financial domain is proving to be a boon to many investors all over the world. According to a data provider, Novum Insights, only in the duration of seven months the ICO industry can raise almost $2.2 billion which is almost three times the traditional amount being offered to a Startup by the institutional investors.
Intro to Tezos
One of the most popular technical projects was launched in July 2017, Tezos. The Tezos project was considered to be even better than the Bitcoin and Ethereum Blockchain. One of the most anticipated tokens Tez was set in motion. Initially, the coin was priced at 5000 Tezzies per Bitcoin. During the conclusion of the Initial Coin Offering the organization had managed to collect almost $232 million for a cryptocurrency coin which didn’t even exist until then.
Key people at Tezos
The couple Kathleen Breitman and Arthur Breitman, and Johann Gevers, where the key people behind this project. The Intellectual Property Rights, as well as the source code for the Tezos protocol, was under the jurisdiction of the Breitmans, through Dynamic Ledger Solutions, a Delaware based company founded by Arthur Breitman himself for the development of Tezos project. The project mainly concentrated on automating the over the counter derivatives trading market.
Arthur Breitman was good at mathematics and computer science and when introduced to Bitcoin in 2009, had decoded the potential flaws of the Bitcoin Technology. While working at Morgan Stanley he had even secretly published 2 online papers that were concerned about the Tezos Blockchain without giving them his name as he was in a fear of losing his job at Morgan Stanley.
The constant internal disputes between the Breitman couple and Gevers has put a full stop at the development of the Tezos project, as well as the hopes and beliefs that the investors held in the project when they participated in their Initial Coin Offering. The couple had actively helped and supported Gever, president of Swiss Foundation, in order to promote the initial coin offering for this project.
According to Swiss law, the independent Tezos Foundation only has the authority over the funds raised, which accounts to be almost $400 million, due to the increase in the price of Bitcoin and Ethereum which was used to for the ICO. The Breitmans are looking for ways to impeach the head of the foundation.
The constant minor quarrels between them have got converted into a huge dispute. A 46 paged letter was delivered to two of the three Board members of the foundation seeking for a prompt removal of Gevers, by the Breitman’s lawyer. The request was also made to give the couple a substantial role in the management and functioning of the foundation. Gevers was even accused to have been self-controlling and self-promoting the project.
Even during the Initial Coin Offering, the minor quarrels between the founders of the project took a form of a major emotional freight. According to Gevers, the Breitmans tried taking over the authority of the foundation considering it to be their private property.
On the other hand according to some reports, Breitman’s claim that their prioritized focus of concentration was on the launch of the Tezos network.
Investors in denial
The investor’s investments are at a high risk as the whole project might get abandoned due to the constant feud between the incompetent founders of the project. The launch of the project is the only, the release of the coins can be initiated, which are already considered to be in the premium category of coins, even though they don’t exist yet. The easier upgradability and a higher security were the key features of the project which categorized it to be one of the premium projects of the time.
Sadly, the investors had agreed to the terms and conditions of the Tezos project, that, at any point of time the whole project might get abandoned and the investors might get nothing but a promise.
This particular instance has made it very clear that one should not be carried away by the boss of the technology. The blind belief that all the Initial Coin Offerings of a project which tends to have a lot of potentials would be successful, is just a fantasy of a dream.
One must carefully weigh the consequences of their decisions, and must carefully go through, all the terms and conditions of any particular Initial Coin Offering before doing an investment. The financial authorities in many countries like USA, Canada, and Switzerland have taken a tough stance in regulating the Initial Coin Offerings in order to safeguard the investments of their citizens. With such irresponsible attitudes of the investors, it is most unlikely that the project would ever be released.