Tezos leaders ask for patience over dispute on cybercurrency project

[bbc.reporter]

This is a type of situation that will force the SEC's hand to make a decision that will be unfavorable for all ICOs. What happened to Tezos and their foundation? They had a successful ICO and their platform is on the way. What else are they looking for that caused the dispute? More money?

I speculate that the article is not telling everyone the whole story.



The creators of an embattled cybercurrency technology project called Tezos expressed regret on Tuesday about their ongoing dispute with the head of a Swiss foundation that controls the $232 million they raised in one of the largest “initial coin offerings” ever.

In the Tezos fundraising, participants were told they were not making an investment, but a “non-refundable donation” to the Tezos Foundation, which is seeking not-for-profit status.


Read the article in full https://www.reuters.com/article/us-bitcoin-tezos-battles/tezos-leaders-to-tout-cryptocurrency-project-in-vegas-as-promoters-fight-idUSKBN1CT2LZ

[CryptoBry]

This Tezos story is just one of the many reasons why the government would be pushing to regulate strictly the issuance of ICOs...and we have nobody else to blame but the greed of the people who are introducing these ICOs...of course not all but that is not how the government operates...a small apple in the box can mean that the whole box has to be taken out.

[bbc.reporter]

@CryptoBry. This is the biggest worry that might unsettle both the regulators and the ICOs in the cryptospace.

In the Tezos fundraising, participants were told they were not making an investment, but a “non-refundable donation” to the Tezos Foundation, which is seeking not-for-profit status.

If the Tezos foundation and the Breitmans, pictured above, do not solve their conflicts from within their organization, then they should refund all the investors of the ICO. But according to Tezos the investors are really donators and do not have the right to claim for a refund.

They carefully planned this to protect themselves but not their investors.

Will Tezos then become the biggest scam in the cryptospace?

[bigdude]

That will be the biggest scam if it be.
And I have my part there. So crazy
it has been few moths but nothing announcement

[bbc.reporter]

@bigdude. The people in the Tezos community are still supportive of the project which they should be. There is still a chance that everything will be put in order and then put this problem behind them. But they might also be bordering in denial.

In denial? https://www.reddit.com/r/tezos/comments/78o1zh/the_tezos_controversy_is_exactly_why_crypto_needs/

Tezos' development will depend on how close the government is in starting to intervene.

[ulhaq]

This is idiocy all around.

Why would so many people make donations to a non-profit?

Why did the Breitmans establish the foundation in Switzerland when they don't seem to understand how Swiss law affects the foundation?

Did they not consider to use some of the $232 million to get some legal advice?

[Crypington]

This whole thing is highly disturbing... Tezos was set to be huge, but this is some serious bungling that casts doubt on the entire project.   Not sure how they can bounce back from this, even if they do regain control of the investment/donations.  .

[bitofc]

This Tezos story is just one of the many reasons why the government would be pushing to regulate strictly the issuance of ICOs...and we have nobody else to blame but the greed of the people who are introducing these ICOs...of course not all but that is not how the government operates...a small apple in the box can mean that the whole box has to be taken out.

totally agree.  Now we can see why Chinese government wanted to stop the ICO activities to protect its citizens.

[deadsilent]

"In the Tezos fundraising, participants were told they were not making an investment, but a “non-refundable donation” to the Tezos Foundation, which is seeking not-for-profit status."

This is the biggest ICO ever if this is really true. I have not see any updates about the project this past few weeks. Until i see this news. That's really sucks. So everything that has been invested to them was all donations? What the hell? What will happen next? I feel sorry those who invested on this project.

[bbc.reporter]

This whole thing is highly disturbing... Tezos was set to be huge, but this is some serious bungling that casts doubt on the entire project.   Not sure how they can bounce back from this, even if they do regain control of the investment/donations.  .

Whether Tezos will recover or not should not be the principal issue in this controversy, but the bitcoins and the ETH invested by the people who to the risk willingly should.

If their internal disputes continue longer than expected, will the investors have a chance to get their coins back? Does the SEC or a Swiss regulator have to intercede if the investors want their coins back?

Those are the questions that should be asked.

[ulhaq]

It has already been mentioned twice in this thread: all the btc/ethereum given were DONATIONS. Thus they have no obligation to give anything back to anyone.

[bbc.reporter]

@ulhaq. Are you telling us that Tezos and its founders are showing all the other ICOs that they have found the perfect situation to scam the community? This is very worrying, because the same model might become the customary way of doing ICOs.

It is the participants who should be protected, not the ICO developers.

[garciaor2002]

When tokens? I heard October

[serian]

Let's be patient. I hope it will get resolved. What I don't understand how all these fundraising were donations when there was ICO.

[eastwind_ja]

What ever is happening now , If  tezos  turns out to be a  successful   project  in future, that  will  astonish the  world of  investment 

[caozhijing]

looks like we can get cheap Tezos token when it launch

[Filmmmakerr]

Get ready for tezos to the best biggest scam ICO of all time, I had a bad feeling about this. Where is Drapper now? Lets see what he says about his investment. If he cares.

[linkybit]

So tokens become really cheap at release.

[RandomEvent]

not a great start, they can recover, but they have to be transparent going forward. Not always easy with this amount of money in play

[ulhaq]

@ulhaq. Are you telling us that Tezos and its founders are showing all the other ICOs that they have found the perfect situation to scam the community? This is very worrying, because the same model might become the customary way of doing ICOs.

It is the participants who should be protected, not the ICO developers.

I would never participate in an ICO donation and don't know why anyone else would. Did anyone here "donate" to tezos, and was it clear that it was a donation?

But regardless of the wording that they used, everyone knows that ICOs are unregulated. So one has to do their due diligence regardless of whatever terminology they use. If an ICO says that someone is going to get ownership in a project, and they abscond with all the funds, there is still no legal recourse, because the ICO may not have been registered in any country.

I posted out a number of concerns with ICOs in general in the ICONOMI thread a very long time ago, and my post was deleted. Even though I did not mention anything specific about ICONOMI, clearly they had some concerns with their ICO.