Tezos Caught In The Middle Of Management Fight: $400 Millions Raised In ICO At (Potential) Risk
Well, every once in a while we learn that not all is well in the crypto valley. And by "crypto valley" I mean Zug, or Zurich, the most crypto-friendly city in the world.
But this story is not about Zug.
It's about Tezos, a blockchain project which raised more than $230 in its ICO, one of the most consistent (if not the most consistent) in the short ICO history. The ICO was managed through a Swiss foundation, based in Zug. Because of the sharp surge in Bitcoin and Ether price, the value of the contributed assets is now over $400 millions.
The fight seems to be between a couple of founders - Arthur and Kathleen Breitman - and the president of the Swiss foundation which managed the ICO, Johann Gevers. To put it short, the Breitmans are accusing Grevers and call him out, while Grevers seems to do the same for the Breitmans.
I am sure we will never know what's the real source of the conflict and, even more, who's "right" and "wrong" in this dispute. To be honest, I think this is their job and their job only.
But, if you invested in Tezos, you should be concerned. These disputes, which are reminding me of a similar case, with Synereo, which kinda fell before he flew, are slowing down development and can create breakups in the management structures.
Also, $400 millions is a lot, a lot of money, and a lot of attorneys would be very happy to work on a case like this (which is another way to say it that they are happy when something like this happens, I suppose).
You can read all the spicy details here.
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Everything that's happened, I predicted in my pre-ICO research piece on Tezos. I focused hard on corporate governance issues and agency issues because the Breitmans have no idea what they are doing. Almost every issue I raised then has reared its head:
Beta-ing the Tezos Experience: Red Flags for the ICO and Open Questions
as i understand it, tezos really isn't such an improvement over steem/eos - it just has support for agreeing changes to the system built into it. i have no idea why it has received so much funding.
Is there any chance that, in case the crypto is actually "released", the price won't suffer due to this scandal?
I mean, even if things go smoothly, it is a terrible omen.
Yes, that's my feeling too.
@dragosroua This will get real interesting over the next few months. Do you think if the Tokens get knocked down hard in price that there may be a time to look at picking some up for the long haul ???
Great post sir
With $400 millions they could do both, the objectives of the ones and the objectives of the others, or split in two parts, but it is so much fun to fight against each other...human nature.