More problems for Tezos, which now demands KYC

[MatyasZaborszkyScam]

There have been calls by prominent industry leaders for a Tezos hard fork, following the prolonged delay in the issuance of the Tezos token to investors.

Speaking on the issue, Vitalik Buterin, the Ethereum co-founder twitted ,

“This seems backwards, Why can’t third parties just run a script to scan the BTC/ETH blockchains, see how much everyone contributed, calculate how much XTZ everyone should get, and generate the genesis block without Tezos Co involvement? That’s how the Ethereum launch worked.”

The Tezos ICO which was held in July 2017 generated $232 million, making it the highest grossing ICO at that time. Tezos co-founder Arthur Breitman then made a post that the launch of the blockchain would be in Q1 of 2018 or even earlier.

However, trouble started when the couple founders fell out with the Tezos Foundation president Johann Gevers with each party accusing the other of fraud. The issue was resolved after Gevers resigned but not before the Foundation and company have been slapped with a number of class-action lawsuits.

With the resolution of the crisis, expectations were high that the investors would soon be offered their Tezzies (XTZ) tokens, but the company recently released a statement saying that investors will have to comply with know-your-customer (KYC) and anti money laundering (AML) verifications which many are unwilling to do.

Many are not willing to do the KYC

Some of the users are asking why the company never stated it was part of the requirement during the ICO wondering why it should change the rules at the middle of the game. In a release, Tezos said,

“it has become best practice to verify that contributors meet basic KYC/AML criteria”

Tokensoft, a US based third party entity has been hired by the company to collate the data. An investor who has undergone the process said that the check asked for a name, phone number, address, government-issued ID and a selfie.

Another Reddit User wrote “Changing the deal after the sale has been completed for months is bad business, no matter how they try to dress it up.”

Indeed, the KYC/AML protocol has never really been enforced as Matt Gertler, general counsel at Digital Asset Research said. He found the company’s stance on the issue unconvincing, saying, “The rules haven’t changed, It’s not that KYC/AML has become the norm, you either had to do it or not.”

Timothy Draper, a venture capitalist who is one of the investors in the ICO agreed with the company’s stance, saying it is their call on how best the issue should be handled. He believes the company has probably weighed all options and felt the path chosen is the best.

However, many investors are not impressed. Some are simply demanding that their money be repaid. Interestingly, in the Tezos agreement between the company and the investors, it was stated that investors should consider their involvement a “contribution” stating that they may never get the tezzies they paid for.

The ICO terms which states state that,

“contributions were not investments, but actually “non-refundable donation.The contributor understands and accepts that TEZOS [the Tezos Foundation] cannot guarantee that contributors shall have any allocation of XTZ when the TEZOS Network is created.”

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[bitChipper]

Sad that such a big ICO has gone through so much in it's inception, a lot of investors have been pissed off about having their funds locked up for so long. The KYC requirement just kind of throws salt an an open wound there.

Aside from that there is still great anticipation for the launch of Tezos, but they surely have lost some ground as far as a token economy platform goes.

Who knows what kind of projects may have been built on them if they launched earlier.

[MadGamer]

The project died the second they had that issue with the collected funds. I know they are trying to get back on their feet but forcing users to verify their identity is not helping much.

[makishart]

The project died the second they had that issue with the collected funds. I know they are trying to get back on their feet but forcing users to verify their identity is not helping much.

I guess there will be a lot of problems in the future. this almost a year and investors got nothin. As far as i know the the scammer team of tezos has been putting a very strict verification to the investors.

[buytheeffinD]

The project died the second they had that issue with the collected funds. I know they are trying to get back on their feet but forcing users to verify their identity is not helping much.

I guess there will be a lot of problems in the future. this almost a year and investors got nothin. As far as i know the the scammer team of tezos has been putting a very strict verification to the investors.

LOL this story keeps getting more comical. Handing off your funds to a 3rd party, then getting screwed by that third party was hilarious. Going to court, hilarious. KYC after all this? Icing on the cake for hilarity .

[currencydesigner123]

For some past days it is heard that tha Tezos is going through much troubles. Recently a new problem for Tezos has arrived, which is demanding the KYC for them.

[jaythelingly]

Tezos is a very prominent token and that is really sad that it is having issues  with so many thing including the kyc problem. I really hope that they will getover from the issues soon and rule like before.

[barsametu01]

That was a very informative post. The incidence was very disappointing for te investors. Many believes that the project is still trying to get back the position that they had lost by overcoming the drawbacks.

[MatyasZaborszkyScam]

That was a very informative post.

Thank you 

[mc.craigsvictor]

Many users are unwilling to partake in the KYC, because this was not informed to them beforehand at the start. The investors are not at all happy and are demanding for their money back as quickly as possible. This news in indeed sad, seeing ICO going through troubled water from its inception.

[goldminecrypto]

Based on this many people are getting disappointed because they don’t getting anything also tezos is known as scam so if its happen then investors will be face loss so before invest you need to judge where you are investing money based on this news is really sad for us.

[alenahype]

Well, why those who pass kus will still have a good coin and a prospective in their purse, so everything is not as bad as it seems, it will not be able to weld the one who was left-handed.

[passioncrypto]

As far as i know this project is not in a good shape. Peoples are not showing any interest about this project. That’s why they take some initiative for their development.

[Alke]

There's a chat to stand up against Tezos KYC! The great thing about Tezos protocol is that we can upgrade it and cancel the KYC check. Let's build a community and fight it together! https://t.me/XTZstopKYC

[ShareAccepted]

Tezos is a very prominent token and that is really sad that it is having issues  with so many thing including the kyc problem. I really hope that they will getover from the issues soon and rule like before.

Tezos is one of those projects that have been going south since it started. It is a bad idea to even get near it, since bad workers can be change, but bad management remains.