More money, more problems
This old age saying could literally fit in perfectly to define the conundrum being experienced by the management of Tezos. Tezos, which was one of the most high profile organizations to reap benefits out of the ICO wave, is now facing rising difficulties of its own.
From what we can understand of the problem at this high profile firm, there seems to be a conflict between the young wife and husband team behind the ICO and the Swiss team that they had hired to help the company build their ambitious software platform. The fight, which ensued after Tezos experienced a windfall ICO, is unresolved to date and has added question marks over the much anticipated release date of the project. Investors who had shown interest in the ICO are glued to their computers to see if they can find the latest updates.
An ICO, for those of us who have been living under a rock and don’t know what this, is basically a platform for a company selling digital tokens to interested investors. These investors can one day redeem these tokens for access to a profitable online service. These ICOs are also treated as speculative investment by many stakeholders.
The Tezos ICO, which happened over a period of 13 days during July this year, helped the firm raise a staggering $232 million in Ethereum and bitcoin. This total is considered to be rising even higher because of the recent surge in the prices and value of these digital currencies.
According to the Wall Street Journal, the problems for Tezos initially started and were made public when the founder, Arthur and Kathleen Breitman, asked the leading protagonist of the Swiss foundation they were working with, Johann Gevers, to resign from the board.
Mr. Gevers has not shied away from presenting his stance and mentioned that “the Breitmans have attempted to bypass the Swiss legal structure and take over control of the foundation, and have acted destructively, causing months of delays in the Tezos project.”
He also alleged that the involvement of the couple in his work was a violation of the independence that their organization enjoyed.
Gevers further cited that the conflict arose over the release of the tokens that are known as tezzies. The value of the tokens in the futures market has drastically dropped by 75 percent due to this conflict.
Kathleen Brietman, on the other hand, defines that the conflict occurred because of Gevers incompetency and how he wanted to arrange a bonus valued over a million dollars for himself. She also added that the release of the tezzies is on the cards and the tokens will be officially distributed by February next year.
This conflict has not only raised the scrutiny of ICO’s, but has also raised concerns from lawmakers regarding the unregulated structure behind how ICO’s operate.