Tezos Basic Review
|Start ICO||29 Jun 2017|
|End ICO||12 Jul 2017|
- Tezos token holders obtain a share in the TEZOS project by using the blockchain technology,
- The share size is unknown because the token supply is unlimited,
- If the Tezos project succeeds, the Tezos tokens market price will go up,
- The project has collected excellent reviews, there are investments from funds, the team is very strong and promising,
- Separate payments in the form of dividends are not provided, but the developers promise such payments in the future, and
- Tezos token also represents the blockchain technology that will be the basis for launching new projects as on Ethereum. It will increase the demand for the Tezos tokens in the future.
Based on our analysis, we recommend to BUY the Tezos tokens at the ICO. The developers and the founders took a responsible approach to the development of the project and managed to confirm the volume of the performed work. Tezos has already attracted the interest of large investment funds and media in the United States. Tezos has its own competitive advantage: thanks to the mechanism of formal verification, the technology can be successfully implemented in the aviation and space industries, as well as in medicine and jurisprudence.
The key competitor of the Tezos project is Ethereum, and the new smart contract will compete with it for a market share. The dynamics of quotations of the Tezos token in the future will depend on the competitiveness of the developed smart contract and the demand for it by developers of other services.
The Tezos project is based on the blockchain technology with a proof-of-stake consensus algorithm. Developers emphasize such qualities of the network as
transparency, security and manageability with the consent of the majority of participants. The project is entirely owned by Dynamic Ledger Solutions, Inc. located in the USA.
At the same time, the Tezos Foundation is a Swiss foundation based in Zug. Its directors are Johann Gevers, Diego Ponz, and Guido Schmitz-Krummacher.
These two companies are not affiliated with each other. This should be taken into account when making investment decisions.
The project is trying to occupy its niche on the market of blockchain services. This market is now developing very actively, and a growing number of sectors of the economy are involving blockchain technologies into their business processes. At the moment, the capitalization of the blockchain market is already above $100 billion, and in the future it will only grow. Startups from blockchain industry have good potential, but only if they provide high-quality and/or in-demand services.
The Tezos project is a direct competitor of the Ethereum platform: both have the system of smart contracts. The advantages of Tezos as compared with Ethereum are as follows:
- The mechanism for stakeholders to approve amendments to the protocol. This means that stakeholders can vote for the adoption or rejection of various amendments in the protocol, including amendments to the change of the consensus protocol itself.
- Turing complete programming language of smart contracts "Michelson", which allows implementing any functions and supporting formal verification.
The prototype of the Tezos product is available on Github for audit. Plus, the team is actively discussing details of technical errors with the tester. The availability of code is a very good sign, confirming the amount of work done on the project.
The project`s Whitepaper presents an excessive amount of data on the technical component of the project. It is overloaded with formulas and lines of code which makes it difficult to find the right information - such as a strategic development plan for the project, or a budget.
The technical documentation details the programming language of smart contracts which is an indispensable advantage.
Initially, the ICO was scheduled to be held on May 22 with the following conditions:
Duration of the ICO: 2,000 Bitcoin blocks (~ 2 weeks). There is no cap on raising funds.
Exchange rate: 1BTC = 5,000 XZT (Tezos tokens)
- 0 - 400 Bitcoin blocks - 20%
- 400 to 800 Bitcoin blocks - 15%
- 800 -1,200 Bitcoin blocks - 10%
- 1,200 – 1,600 Bitcoin blocks - 5%
- 1,600 – 2,000 Bitcoin blocks - 0%
Dividends or other tools to increase the investment attractiveness of XZT are not provided. The dynamics of the XZT price will depend on its competitiveness and the demand for the smart contract by developers and users of other services.
Later, on their website the developers posted an announcement about the ICO being delayed until June. As they said the reason was the delay with the legalization of the Tezos Foundation in the Swiss jurisdiction.
If before the end of June no more information about ICO is published, we advise investors to take the project more cautiously.
Upon completion of the ICO, the team plans to spend the raised funds during 4-6 years. The funds will be distributed as follows:
The annual budget for the project development, including the developers’ salaries, is $900,000. Over the 4-year investment horizon, the startup's costs will amount to $3.6 million. Accordingly, in order to achieve all set goals, this is the minimum threshold to be raised during ICO funds.
The team of highly qualified specialists is working on this project:
- Arthur Breitman (LINKEDIN)
He graduated from the New York University with a degree in Financial Mathematics. Before that he worked for such companies as Morgan Stanley and Goldman Sachs. He held the position of Asset Manager and Vice President.
- Kathleen Breitman (LINKEDIN)
He graduated from the New York University, worked as a consultant and administrator for Bridgewater Associates and other companies.
Most of the project developers have PhD in the formal verification and programming language theory.
The advisers of the project include such experts as Zooko Wilcox, the leader and founder of the project Zcash, and Emin Gün Sirer, a specialist in distributed databases (P2P).
The Tezos project attracted a lot of attention in the media. It was mentioned in such media as ZEROHEDGE and CNBC. Arthur Breitman`s interview is published on YouTube. The well-known venture investor Tim Draper announced his intention to take part in the ICO of the Tezos project. Also, it is known that the Tezos project received funding for its development from the Polychain Capital Investment Fund.
The Tezos Bitcointalk`s main thread is not informative because it is only one page long. There are additional threads, including those in Russian one. The founders do not participate in the discussion of the project with the community.
The team considers the sale of the product during presentations in such cities as New York, Tokyo, Paris to be the main promotion tool.
You can contact the Tezos team through e-mail: email@example.com.
The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.
Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.
We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.