The blockchain project, Tezos, recently concluded their crowdsale initial coin offering (ICO) which raked in a record-shattering $232 million. Previously, the highest crowdsale ICO record was held by EOS. Both of these can be analysed indepth to learn how to do an ICO correctly. The Tezos ICO commenced on July 1st and remained active until the Bitcoin network processed all 2,000 transaction blocks, collecting a total of 65,630 BTC, as well as 361,122 ETH.
The ICO managed to lure several high-profile investors, including the billionaire venture capitalist, Tim Draper. The ICO sale broke the record previously held by Block.One’s EOS token. The EOS token raised $185 million from its five day sale. The record before that was held by the Isreali startup, Bancor, which raked in just over $153 million. Bancor, a decentralised network for conversion between various ERC20 coins, also received an endorsement from Tim Draper.
Tezos was developed in order to modify the current blockchain model and will allow for improved smart contract facilitation. The project was specifically created to be a self-amending ledger, which means that stakeholders will make the final decision regarding which protocols are used in the network.
Theoretically, this system could create an environment in which development is even more decentralized than first-generation blockchain projects. In first-generation projects, a large portion of power remained centralized and controlled by core developers and miners.
According to the Tezos website, the moment a developer suggests a protocol upgrade, they can immediately send out an invoice which has to be paid to their address after the upgrade has been approved. The Tezos core team stated that this will provide a strong incentive for active participation and will serve to decentralize the network even more.
One of the main goals of the Tezos network is to discourage any blockchain splits within the network, as can be seen between Ethereum and Ethereum Classic, after The DAO event. However, this approach has received a large amount of criticism and skepticism from prominent members of the crypto community, including Ethereum co-founder, Vitalik Buterin.
Buterin has voiced his disagreement with the Tezos model on several occasions, especially on his Twitter feed, where he stated that he personally disagreed with the proposed Tezos governance model.
https://twitter.com/VitalikButerin/status/884524036549726209
In response, Tezos stated that while they hope to prevent forks happening in the future, no governing system can completely get rid of the possibility.
ICOs have become dramatically more popular in a short amount of time. Collectively, ICOs have raised a total of $1 billion in funding. However, ICOs have also caught the attention of financial regulating bodies, especially as investments have become increasingly high. Certain governments, like the US government, have chosen to implement a highly inefficient regulatory system, while others, like the Chinese government, have chosen to ban the practice altogether.
Certain ICOs have decided to exclude American users from their crowd sales altogether purely to avoid the vague regulatory environment. For example, the EOS purchase agreement stated that American citizens were prohibited from contributing to the crowdsale, despite the sale being advertised in the popular Times Square, in New York City.
So far the only country which seems to have a fair and comprehensive regulatory framework in place is Japan. This quickly cemented Japan as the world's largest trading platform. As ICOs, such as Tezos, continue to rake in record-breaking funds, the need for efficient regulations will only increase in severity.
The ICO managed to lure several high-profile investors, including the billionaire venture capitalist, Tim Draper. The ICO sale broke the record previously held by Block.One’s EOS token. The EOS token raised $185 million from its five day sale. The record before that was held by the Isreali startup, Bancor, which raked in just over $153 million. Bancor, a decentralised network for conversion between various ERC20 coins, also received an endorsement from Tim Draper.
Tezos was developed in order to modify the current blockchain model and will allow for improved smart contract facilitation. The project was specifically created to be a self-amending ledger, which means that stakeholders will make the final decision regarding which protocols are used in the network.
Theoretically, this system could create an environment in which development is even more decentralized than first-generation blockchain projects. In first-generation projects, a large portion of power remained centralized and controlled by core developers and miners.
According to the Tezos website, the moment a developer suggests a protocol upgrade, they can immediately send out an invoice which has to be paid to their address after the upgrade has been approved. The Tezos core team stated that this will provide a strong incentive for active participation and will serve to decentralize the network even more.
One of the main goals of the Tezos network is to discourage any blockchain splits within the network, as can be seen between Ethereum and Ethereum Classic, after The DAO event. However, this approach has received a large amount of criticism and skepticism from prominent members of the crypto community, including Ethereum co-founder, Vitalik Buterin.
Buterin has voiced his disagreement with the Tezos model on several occasions, especially on his Twitter feed, where he stated that he personally disagreed with the proposed Tezos governance model.
https://twitter.com/VitalikButerin/status/884524036549726209
In response, Tezos stated that while they hope to prevent forks happening in the future, no governing system can completely get rid of the possibility.
ICOs have become dramatically more popular in a short amount of time. Collectively, ICOs have raised a total of $1 billion in funding. However, ICOs have also caught the attention of financial regulating bodies, especially as investments have become increasingly high. Certain governments, like the US government, have chosen to implement a highly inefficient regulatory system, while others, like the Chinese government, have chosen to ban the practice altogether.
Certain ICOs have decided to exclude American users from their crowd sales altogether purely to avoid the vague regulatory environment. For example, the EOS purchase agreement stated that American citizens were prohibited from contributing to the crowdsale, despite the sale being advertised in the popular Times Square, in New York City.
So far the only country which seems to have a fair and comprehensive regulatory framework in place is Japan. This quickly cemented Japan as the world's largest trading platform. As ICOs, such as Tezos, continue to rake in record-breaking funds, the need for efficient regulations will only increase in severity.