Despite a massively successful ICO that raised over $230 million USD, the Tezos team has split over differences between Foundation president Johann Gevers and project founders Kathleen and Arthur Breitman. Earlier, citing “the best interest of the project”, Gevers announced he and one other Tezos Foundation member will leave the board and cede control over the hundreds of millions of dollars it held from the token offering.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Old Tezos Foundation Resigns, New Foundation Created
The past six months have been a bit unusual for Tezos and its supporters. Back in July, it was the talk of the cryptocurrency world, and many predicted its $230 million ICO raise was just the beginning of something special. A platform destined to not only expand behind its rival Ethereum, pundits said, but one that was sure to have a top ten market cap.
Not long after, rumblings of an internal dispute between founders Kathleen and Arthur Breitman and Foundation lead Johann Gevers led to widespread reports of a fracture between the developers and the foundation.
The reality was that the Breitman team controlled the company behind the technology while the Foundation oversaw the ICO funds. With over $230 million in initial donated/invested funds now eclipsing a billion dollars in value, the Tezos project was at a standstill and investors were not happy.
All the bad blood can be put aside, as today the Tezos Foundation announced that Johann Gevers and Diego Olivier Fernandez Pons had voluntarily offered to resign from its board.
Ryan Jesperson, an individual who set up a second foundation with an aim of supporting the struggling Tezos project, will replace Gevers as president. It is not exactly clear what will happen with the second foundation, called “T2”, and the role it will play in the future.
Feud Distracted From Development
As individuals around the globe consider if going through an ICO or if investing in an ICO is right for them. They should look at Tezos as an example of what potentially could go wrong even if everything looks right on the surface.
The internal dispute by the Tezos team has stalled the project and led to a lot of distractions. All of which is time that could have been used to build out a platform that thousands had put their hard-earned money into.
Despite the Foundation’s split and “reformation”, the new members will be responsible for managing over a billion dollars in public contributions — and building a platform that is the go-to place for smart contracts functionality. Whether that happens remains to be seen.
Do you think the team behind Tezos could have handled the dispute with Johann Gevers in a better way? If so how? Let us know what you think.
Images via Finance Magnates, Netzwoche.ch