Tezos launched its beta phase in June, calling the decision an “inflection point” for the venture. Starting at that time, clients could start approving blocks or “baking” at the end of first seven cycles.
To create a blockchain network and introduce a novel crypto currency, Tezos launched an Initial Coin Offering (ICO) in July 2017, receiving about 66,000 Bitcoins(BTC) and 361,000 Ethereums( ETH) worth approximately $232 million. Tezos, however, designated the funds “a non- refundable donation” instead of a “speculative investment,” adding that the crypto token might not be released in the market at all.
Following the successful completion of the ICO, a disagreement emerged between Arthur and Kathleen Breitman, the co-founders of the venture who possess Tezos’ intellectual property rights, and Johann Gevers, who administered the raised funds.
The #Tezos mainnet is live! https://t.co/nL825YY8SV
— Tezos Foundation (@TezosFoundation) September 17, 2018
This resulted in an indefinite set back of the platform launch and a flurry of lawsuits against the firm. Following the ICO’s completion, Tezos has also been the topic of censure and numerous lawsuits concerning compliance with U.S. Securities and Exchange Commission (SEC) rules.
The lawsuits claimed that Tezos tokens must be regarded as securities according to the U.S. law, implying they would require registration with the SEC in order to be legitimately offered to investors.
In June, the establishment announced the compulsory implementation of Know Your Customer/Anti-Money Laundering (KYS/AML) checks for investors, purposely for those looking to partake in ICOs. The change of stance was met with a resistance from the community.
At the time of writing this article, Tezos (XTZ) is trading around $1.58, up over 6.8% from the prior close. Market capitalization of Tezos hit $1.02 billion.