Over the weekend, it was reported that the Tezos network is finally going live. With its ICO finishing in July of last year at a record setting level, it seems that many crypto insiders have been wondering what the hold up has been.
To make matters worse, from the beginning, the project has been shrouded in a significant level of controversy. Just after the ICO, certain investors were blindsided by the announcement that they would not be given any Tezos tokens in return for their Bitcoin or Ether donations.
The reason that was given was that a certain number of customers failed to finish the know your customer and anti-money laundering requirements that Tezos had asked them to do. The further trouble is, according to a report by Coindesk that was released on Saturday, Tezos never asked customers to fulfill these requirements during their ICO.
This not only brings into question the legality of their offering in the USA, given current guidelines in the space, but it also brings into question whether the foundation behind Tezos has acted in an ethical nature throughout the year that has passed since the ICO.
The requirements were not even released until just recently this year, according to the same report. Adding fuel to the fire is the fact that the control of Tezos was disputed between the founders who control its code, and the Tezos Foundation’s late president, who seemingly controlled the money that it had gained through the ICO.
Until February of this year, it was believed that this dispute was the major cause of the holdup of the launch of the network.
Coindesk has speculated, however, that the announcement in June about the KYC and anti-money laundering requirements was also fueled by regulatory uncertainty of some sort.
Whatever the case, with all of this haze surrounding its launch, it would be reasonable to steer clear of Tezos, at least, until some of the uncertainty clears. For now, stick with the Ethereum network.
By: BGN Editorial Staff