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Tezos STO: The governance token with governance issues?

STO data

 

Tezos is a unique blockchain platform that can evolve by upgrading itself. Stakeholders vote on amendments to the protocol, including amendments to the voting procedure itself, to reach social consensus on proposals. Tezos, like Ethereum, sports its own coding language for the development of smart contracts.

With a very controversial past as an ICO, Tezos made waves in 2017 when they raised $232 million, cementing themselves as the 8th largest in the history of Initial Coin Offerings. Shortly after, they were slapped with 4 class action lawsuits due to the painfully public fallout between board members through a publication by Reuters.

Although the exact details of the dispute weren’t revealed, one thing is clear. There is a certain irony in how Tezos, the cryptocurrency aiming to solve governance issues on the blockchain, crashed due to governance issues.

 

Funds raised by STOs in the Blockchain Industry ($MM)

 

Funds raised by STOs in the Blockchain Industry ($MM)

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Having raised $232 million in funds, over 10 times that of QuarkChain, Tezos leads by a massive margin in the current Blockchain Industry.

 

ICO+STO funding in 2017 ($MM)

tezos ico

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Q2 of 2017 shows the maximum funds raised in the last 3 years and Tezos is a major contributor to that statistic. A total of ~$6.3B was raised by ICOs & STOs from all industries in 2017 according to InWara’s ICO+STO Database and Tezos alone contributed to 3.6% of the total funds raised.

 

History

Tezos, the world’s first “self-­amending” cryptocurrency, as they would like to call it, was the brain-child of Arthur Breitman and Kathleen McCaffrey who eventually got married. The project was first proposed in 2014 by the Breitmans and found its concrete ground in 2017. The Breitmans thought they’d be lucky if their enterprise could garner $20 million, and they hoped to have at least a modest impact. What began in utopian ambition would blow up into one of the crypto world’s biggest scandals.

 

Recovery and Progress

In the course of time, the Delegated proof-of-stake (DPoS) smart contract platform, has experienced a series of recent developments that have its community buzzing over the future.

Ryan Jesperson’s takeover as the new lead brought in major improvements, including a partnership with the ‘big four’ auditing firm PricewaterhouseCoopers (PwC) – which has helped the foundation repair its reputation. They introduced their first self-amendment proposals for the protocol’s forthcoming Athens upgrade. Both proposals were put forth by Tezos research and development team Nomadic Labs.

Another fresh development that has caught attention of the community is American cryptocurrency giant Coinbase’s hiring of Luke Youngblood, the architect of Tezos’s staking model. This is an indication that Coinbase is pivoting toward facilitating its users’ direct participation in blockchain networks and that Tezos has a larger future at that company in particular.

 

$1B in STOs incoming to Tezos

Ever since the protocol had a head-start in 2019, Coinbase is expected to bring high interests to Tezos.  Earlier this month, Elevated Returns, a real-estate portfolio operated by entrepreneur Stephane de Baets, announced it had lined up approximately $1 billion USD worth of properties to be tokenized and released as Security Token Offerings via Tezos.

The future of Tezos looks hopeful and they also helped make a case study of how NOT to do an ICO.

Read a full report of STOs and their forthcoming plans for 2019, here.