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Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

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Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#21

Post by laxatives »

koolba wrote: post #17
relyio wrote: post #15

Earlier quoted context omitted.

I'll edit my post. I have donated what I could afford to donate at the time ($200). Thanks for the heads up.

I’m confused. When you say “donated”, what does that mean I’m this context? I thought ICOs are something you buy into to own the coins. And as a follow up, why donate to an org that has $200M+?

They have $200M because people donated. The ICO is described as a fundraiser, not an investment, because it reduces liability and opportunity for government intervention. In exchange for "donation" you get XTZ. Presumably, you expect that XTZ to grow in value to make a net profit.

The upshot is that its a word that is synonymous with investment, but requires less responsibility. On the flipside, they could disappear and your are out of luck because the government won't regulate donations as carefully as securities.

Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#22

Post by pavlov »

anonyxyz wrote: post #14
pavlov wrote: post #13

Earlier quoted context omitted.

Do you have Tezos tokens? If so, it’s polite to disclose your stake, like on stock investment forums. Promoting an ICO that doesn’t have a shipping product is much like promoting a penny stock.

No one has tokens, it doesn't exist yet.

Surely there’s some form of placeholder token for those who bought into the ICO, even if it’s not exchangeable? Otherwise what’s the point?

Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#23

Post by touchofevil »

laxatives wrote: post #18

I had been following Tezos closely since November and was really excited about the ICO. But it became incredibly apparent that the Breitmans were dishonest. Firstly, the compensation structure was ludicrous. Many people were upset about an uncapped ICO -- I thought this was fine, until it became apparent that they would make hundreds of millions of dollars IMMEDIATELY. They have absolutely no incentive to continue th…

I think you are incorrect about how much the Breitman's would make from the ICO. The Breitman's company DLS would get 8.5% of the ICO funds once the main net launches and then their company would also get 10% of the genesis block, but that vests over four years.

So 8.5% of $232 million would be about $20 million and it's hard to say what 10% of the genesis block would be worth over the course vesting. Below are the details about the payments to the Breitmans.

https://www.tezos.com/dls

Payment Structure and Contrast to Common fundraising practices It has become common in fundraisers, or in token generation events (TGEs) for founders of entities selling tokens to reward themselves, in addition to their token allocation, via salaries with little or no accountability and oversight and in a manner that doesn’t reflect the viability of their product.

In contrast, payments to DLS are contractually prescribed via the following criteria, which are being shared publicly and in advance of the fundraiser:

No payment will be made unless and until the terms in the preceding section of this document have been met. Once met, DLS’ shareholders will receive 8.5% of the contributions made during the fundraiser. In addition, DLS’ shareholders will receive a 10% allocation of the tokens in the genesis block, placed in a smart contract that will vest monthly over a period of 48 months. These criteria represent a far more transparent and equitable reflection of the reality of the transaction.

Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#24

Post by relyio »

koolba wrote: post #17
relyio wrote: post #15

Earlier quoted context omitted.

I'll edit my post. I have donated what I could afford to donate at the time ($200). Thanks for the heads up.

I’m confused. When you say “donated”, what does that mean I’m this context? I thought ICOs are something you buy into to own the coins. And as a follow up, why donate to an org that has $200M+?

In early July, the Tezos foundation ran a fundraiser to fund the project's development (R&D, Bizdev, etc.). At the time it did not have funding (or very little). Its current treasury comes from that fundraiser.

It is an "ICO" because in exchange of your donation, the foundation will recommend a token allocation for you in the genesis block. Nothing prevents anyone to create a "concurrent" genesis block with different allocations though. It's just that the chances are people are going to follow the one the foundation recommends.

So, in that sense... it's an ICO. Although not quite like an ERC20 token sale.

Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#28

Post by relyio »

laxatives wrote: post #18

I had been following Tezos closely since November and was really excited about the ICO. But it became incredibly apparent that the Breitmans were dishonest. Firstly, the compensation structure was ludicrous. Many people were upset about an uncapped ICO -- I thought this was fine, until it became apparent that they would make hundreds of millions of dollars IMMEDIATELY. They have absolutely no incentive to continue th…

>They claim they had a large team working on the project for 4-5 years full-time.

Can you cite that claim please? just curious :)

Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#29

Post by kirillseva »

touchofevil wrote: post #23
laxatives wrote: post #18

I had been following Tezos closely since November and was really excited about the ICO. But it became incredibly apparent that the Breitmans were dishonest. Firstly, the compensation structure was ludicrous. Many people were upset about an uncapped ICO -- I thought this was fine, until it became apparent that they would make hundreds of millions of dollars IMMEDIATELY. They have absolutely no incentive to continue th…

I think you are incorrect about how much the Breitman's would make from the ICO. The Breitman's company DLS would get 8.5% of the ICO funds once the main net launches and then their company would also get 10% of the genesis block, but that vests over four years. So 8.5% of $232 million would be about $20 million and it's hard to say what 10% of the genesis block would be worth over the course vesting. Below are the d…

who controls the rest of the money? Could be the same people, just indirectly, via friends or shell companies incorporated in Switzerland

Re: Tezos Raised $232M in a Hot Coin Offering, Then a Fight Broke Out

#30

Post by atomical »

pavlov wrote: post #13
relyio wrote: post #9

It's still an interesting project, even if drama like this sucks. Of course, I'd have preferred to see a technical article about the engineering backing the project. Rather than one about a bad apple making its way to a foundation board member sit and caught self-dealing by the rest of the team. But, it's not the end of the world. I hope people will move on soon. Guy was caught. He has been suspended. I guess his rem…

Do you have Tezos tokens? If so, it’s polite to disclose your stake, like on stock investment forums. Promoting an ICO that doesn’t have a shipping product is much like promoting a penny stock.

Disclosing cryptocurrency holdings can make you a target for hackers. Many people have been targeted by tweeting blockchain news on twitter.
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