Tezos, one of the hottest babies of the cryptoworld which raised $232M through ICO in July, plunged on derivative and futures exchanges after rumours around management spat.
What’s wrong there?
Growth issues – after initial hype, recruitment had come to a standstill and the product – a better blockchain for digital currencies – is not moving much forward.
Also seems some personal issues. Both founders — Arthur and Kathleen Breitman — spoke against Johann Gevers, the president of a Swiss Tezos Foundation created to support developing the Tezos product. They accuse Gevers of “an attempt at self-dealing” and “misrepresenting to the council the value of a bonus he attempted to grant himself”.
OMG… And what are the consequences?
Derivatives on Tezos tokens fell 31%, according to HitBTC. On BitMEX, December futures on Tezos tokens plunged 58%. Bye Felicia?
What can we learn from it
- Size doesn’t always matter – the hottest ICO projects might fall apart over internal issues.
- Team is your key to evaluating a crypto company.
- Hype and money might be nothing more than a marketing achievement.
- Crypto market is small – and failures of that scale might halo trust issues to the other ICO unicorns.