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Past ICO Review: Tezos, Crypto King for a Day

  • Eric Eissler
    🕵️‍ ICO Watch

    What happened with Tezos, one of the largest ICOs to date, which lost control of most of its funds due to infighting


Past ICO Review: Tezos, Crypto King for a Day
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The unlaunched token entered into CoinMarketCap on Oct. 2, 2017 at $1.66 per token and despite the failings of the rest of the organization, which is facing numerous lawsuits and serious infighting, the token is trading at, as of writing, $3.05, an 84 percent jump in value since its debut.

However, the token has still not been officially launched or made available to the public for purchase, so no one actually owns these unreleased tokens. It’s too bad that this infighting has kept investors from their money and earned gains.

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Crypto King for a day

Tezos erupted onto the market with its astounding $232 mln ICO, but quickly lost control of most of its funds due to infighting and now trying to stave off pending legal cases. The biggest issue is the fact that the company is a Swiss-American cheese sandwich that is entangled in Swiss law.

According to Swiss law, the foundation is to be independent of the company and it holds the purse straps in this operation, leaving the other partners out in the cold. Arthur and Kathleen Breitman, the ones in the cold, are the holders of the Tezos source code via a Delaware-based company, Dynamic Ledger Solutions.

To gain back control of all the ICO-raised capital, the Breitmans have been trying to oust the head of the foundation, Johann Gevers. Of course, he was not having it and was fighting back, accusing the pair of character assassination.

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Fighting for control

Since the start of February 2018, Gevers has restructured the board and added a new member in an effort to continue to fight. However, later in the month, it was announced that the entire foundation board, Gevers and two others, have voluntarily resigned.

This resignation has opened the way for Tezos’ community members to step in and take over. Under the assumption that the token could officially be released to the public and that the investors get back their contributions- remember that 85 percent gain!

According to the press release on February 22, 2018:

“The foundation is preparing itself to assist in the timely launch of the Tezos network.”

Radio silence on release

After all the shake-ups in February and promise by Breitman to “go rogue and release the token in the new few weeks,” Tezos tokens remain behind a thick wall of glass, tantalizing those who invested, only to see their investment grow but be unable to pluck it like a ripe green plum.

While there were many promises made to deliver, investors are growing tired of hearing excuses after a nine-month wait since the ICO closed. Usually, investors get their tokens within a month or two after the close of the ICO investment period.

Furthermore, there have been allegations made that technical progress has not been made, due to the fact that there are no funds to pay developers which have abandoned ship.

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Silver lining: hope and appreciation

Despite the deluge of bad news, that would usually decimate a company’s stock price, Tezos token has appreciated, causing some to believe that it will actually be worth something in the end.

However, given the lawsuits and empty promises that Tezos was to go rouge and release the token, nothing has happened in six weeks from this promise. Leading many to believe, this token, like the many others before it and after it are destined for the ICO dustbin.  

Cover image via u.today
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The Top Rate ICO Industries in 2018

  • Stavros Georgiadis
    📊‍ Infographics

    Investing in ICOs requires due diligence and analysis of potential risks and returns.


The Top Rate ICO Industries in 2018
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Investing in ICOs requires due diligence and analysis of potential risks and returns. CoinDesk is its article named “The Seven Pillars of ICO Investing” has listed the most important pillars to consider before deciding to invest or not on any specific ICO project.

These 7 Pillars are the following:

  1. Team
  2. Idea
  3. Execution
  4. Legal/Regulatory Framework
  5. Tokenization
  6. ICO Structure
  7. Price Divers

What is interesting and should not be surprising though in the ICO investing is the fact that business models and marketing, promotional channels differ significantly in the amount of fundraising, as some business categories have in general twice the median funding compared to the smaller ones. The following statistic may be useful to investors as it represents the ICO categories with highest median funding. A higher amount of funding may be justified by future business prospects about what investors believe are the most promising trends that could be deliver desired returns on investments given the risks taken.


Categories with highest median funding in 2018:

  1. Blockchain Infrastructure
  2. Internet & Telecommunications
  3. Computing & Data Storage
  4. Data Analytics
  5. Asset Management
  6. Legal Services
  7. Social Media & Communication
  8. Supply & Logistics
  9. IT
  10. Identity & Reputation

These business categories are referenced not in random order, but from highest to lowest order of median funds raised. The Blockchain Infrastructure category has the highest median funds raised at $ 7,012,289, while the Identity & Reputation category has the lowest median funds raised in 2018 at $ 3,750,000. The first and last business categories have a significant difference between them in terms of median funds raised as the Blockchain Infrastructure category is 87% larger than the Identity & Reputation category.

Another key interesting statistic in ICO investing is the geographical distribution of projects fundraising in the third quarter of 2018. The following infographic shows that there are again very large differences within continents. Europe and specifically Russia with $ 182.9 Million was the largest market, Israel with $19.6 Million was the smallest market, while South Korea witnessed a significant drop in fundraising as according to ICORating, in Q3 2018, 17 projects with South Korean origins raised USD 68 million, compared with 16 projects and USD 301 million in Q2 2018.

Geographical distribution of projects based on origin of the project team, Q3 2018

Geographical distribution of projects based on origin of the project team, Q3 2018

Country of origin means a country in which more than 50% of team members were living at the time of an ICO.

Another point worth mentioning is that in Q3 2018 USA had the largest number of projects compared to all mentioned countries in the above infographic, still Russia with a smaller number of projects, 63 was as mentioned the largest market.

Cover image via u.today
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