Tezos ICO - why it is so attractive to investors
After looking up many ICO's because of fear of missing out (FOMO) I found an ICO that finally caught my eye. Surprisingly, the reason why, was not so much because of the technology behind it (even though it was a bonus), but because of the location of the Organisation.
It's based in Switzerland. No wonder it has 200M dollars behind it.
Since steemit's aimed audience are traders and not giant investors, this aspect may seem surprising and confusing to some people reading this article. Why would you invest in something just because it is based in Switzerland?
The reason why, is because Switzerland, in the land of investors, is the safe heaven of stability. Its native currency is so stable, that in a period of uncertainty or when market prices crash investors run to buy Swiss Francs to minimise loss. What's more is that Switzerland has marketed its self to the world, as the centre of the banking system. Swiss banks are known to be among the most successful in the world. Furthermore they have an innovative way of thinking, due to the fact that they are always looking to invest in new markets. In fact they are the among the only banks willing to heavily invest in cryptocurrency. You can see this on https://entethalliance.org an organisation of companies looking for new ways to use the ethereum smart contracts for everyday use (2 major swiss banks are launch members).
Not only are Swiss banks contributing to the development of the new cryptocurrency era, the swiss government is also committed to help with the development of cryptocurrency, by loosening its legislation and helping it's development. Switzerland has also many ties with China. Meaning that the positive image of Switzerland is know worldwide.
More excitingly, swiss universities and polytechnics (ETH for example), are looking to become the european centre of technology. While America has Silicon Vally, and China has Shanghai, Europe still doesn't have a definitive and well established technology hub, London is just not popular enough due to Brexit and university fees. Switzerland is desperately looking to claim this title, especially the city of Zurich which already has one of Google's biggest offices.
Most of the time, it is these aspects that investors look at when investing into something. Of course the technology is important too, but it is easy to suggest the upcoming of a new technology that has not been created, all you need is a website and a bit of know-how and anyone can create a project (useless ethereum token). The fact that a project is based in Switzerland, helps in the eye of an investor, promote positive sentiment.
Sentiment in easy terms is just your gut feeling.
Hopefully you can see why the Tezos ICO is so popular from another perspective that should not be overlooked when investing.
If you liked this post please Upvote and comment your opinion on it since it is very important to me to hear other peoples opinions.
very good investigations on this! upvoted and resteemed . i will definately be looing at tezos
thank you. I really appreciate it.
Great points bud. I was asked by a friend about this Tezos thing if it looked good as an investment. I couldn't find the reason how it reached the levels its on now. You've made really solid cases.
But do you think the authority that the Swiss have in the financial industry, more specifically in banking, merits almost quarter of a billion? I skimmed through their whitepaper and it didn't look like its technology is as innovative as, say, IOTA.
1 more thing, have you looked at their core team? It doesn't look like those people have a lot of experience. Yea sure Zooko is a part of the advisory board, but still, I can't get there.
What do you think?
I do think that the authority that the Swiss have in the financial industry is worth almost a quarter of a billion, especially since the possible return and loss is unheard of in other markets. The security that the Swiss brand gives to investors is immense. Same thing goes for the British brand in China (huge property investment in limited to London). All people see of other countries is what those other countries want you to see. Having grown up in a british family in Belgium and in Switzerland i learnt this very quickly. All everyone thinks of a British person is that he lives in a 1 million penthouse in London.
The technology is not so ground breaking EOS is very similar in my opinion, and i agree that IOTA looks much more innovative, but people like security, they know ethereum works and therefore they invest in an allegedly better ethereum.
Unfortunatly I can't answer your last question, you are probably right in saying that they don't have much experience. All I can say is that i haven't seen any posts advertising the skills of the team.
While I agree that Tezos is going to be fabulously lucrative I don't see the relationship between location and success anymore. Perhaps in the early 2000's that was the case in LA (Silicone Valley) but with DAPPs becoming the businesses of the future location is something that really isn't tied to them anymore and the investors for these businesses are now everyone, everywhere. Thats why they are having a crowdsale, they need investment capital, and they aren't getting it from Switzerland.
You would be right if we were in the future, unfortunately people still think in this way. I didn't say or mean that the investment capital was coming from Switzerland I meant that the capital was coming in for the pure fact that the organisation is based in Switzerland. It's a bit like buying a bag, you can buy it at H&M or Louis Vuitton, in the end the bag does the same thing, it probably cost the same price to make, the only reason you prefer the Luis Vuitton bag is because of the Brand.