Why Tezos pulled off the biggest cryptocurrency ICO.

Why Tezos pulled off the biggest cryptocurrency ICO.

By Dzoelx | Scripts | 17 Feb 2021


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On July, 14 2017, Tezos foundation completed its fundraising program for the then highly anticipated Tezos blockchain. Raking in over 65,000 (sixty-five thousand) Bitcoin and 361,000 Ethereum coins. Tezos’ $230 million dollars ICO sent shivers down the spines of cryptocurrency enthusiasts and the world outside the crypto space. Founded by the Breitman couples, the Tezos project raised over ten times their initial estimate. Following bitcoin and ethereum price appreciation, tokens realized from this ICO would worth almost half a billion dollars before the Tezos foundation could spend a dime from it! Such financial success doesn’t come without its own issues; Tezos foundation and the project founders were soon involved in a series of lawsuits and internal issues.

Filecoin (FIL) raised over $250 million out of an initially planned $40 million token sale two months later. But Tezos’ ICO heroics remains one of the most notable cryptocurrency fundraising programs in the history of this activity. While most projects struggle to realize their fundraising projection, Tezos smashed past its estimated revenue…ten times!
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Trade Filecoin (FIL) and Tezos(XTZ) on Bityard

Taking the preceding run of events into account, here’s why Tezos pulled off the greatest ICO in the history of cryptocurrency.

 

Interesting fundamentals

 

Whether you think Tezos deserved its half a billion-dollar ICO revenue or not; one thing is certain; it was by far the most prospective cryptocurrency projects at that time. With Tezos, the Breitman couple had proposed ground-breaking protocols which solved the biggest blockchain issues at that time.

Ethereum and bitcoin had already gained their grounds in the crypto space at this time and occupy the second and first position in the charts, respectively. Worth billions and hundreds of millions of dollars in total market capitalization respectively, bitcoin and ethereum were already riddled by their shortcomings. The cryptocurrency community has realized that they are in fact, far from perfect.

Bitcoin suffered severe governance issues and different members of the bitcoin community were quick to create their own forks of the original bitcoin blockchain. Each fork was very similar to the parent blockchain with only little differences. An issue which has continued till date. The proliferation of bitcoin forks created a huge divide in the bitcoin community and there was no end in sight for this issue. The cryptocurrency community was in dire need of a better alternative.

Ethereum, the most popular smart contract platform at that time was notably slow. Paying fees isn’t really something the cryptocurrency ever loved to do.

Kathleen Breitman and her spouse presented a solution to these problems in one word – Tezos. Tezos proposed a proof of stake blockchain which features an on-chain governance model. The proposed model allows the protocol amend itself when upgrade proposals receive a favourable vote by the general community. This governance model solves the issue of rampant and untamed forks which rocked the bitcoin community. Proof of stake consensus algorithm allows cheaper transaction fees.

Like anyone in search of a savior, the cryptocurrency community was quick to levitate towards the Tezos project. ’It presented feasible solutions to their biggest issues’. It was the ‘future’.

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Tezos(XTZ) is available on Bityard – earn 258USDT when you register

 

A Lustrous public ICO

 

A good marketer could sell any product with huge gains. In addition to the fact that Tezos’ fundamentals were already enough to attract an investor, the public token sale was conducted in a plausible fashion. Termed a ‘donation’, participation in the Tezos ICO was in fact a non-profit oriented activity. Investors were warned off high financial expectations from the project and in a disclaimer The project’s founders and ICO facilitators freed the future developers of pressure from investors.

However, for a project as shinny as Tezos, anyone could guess that there’d be some good gains sometimes in the future. These warnings and disclaimers were not enough to shake off the already enthusiastic cryptocurrency community.

Tezos’ token sale featured a bitcoin block time dependent bonus. An initial 20% bonus which reduces by 5% for every 400 bitcoin block. For instance, an investor donating during the first 400 blocks (0-399) from the start of the ICO gets a 20% bonus; another investor donating after the first 400 blocks (400-799) gets a 15% bonus. Good snack, huh? I’d think so too. Great marketing to be frank. This worked wonders for the ICO team. A greater number jumped on the 20% and traded in their bitcoin for Tezzies. Tezos ended up raising over $230 million selling each token at an average of $0.47.

 

Appropriate timing.

 

2017 was notably a period of boom in the crypto space. Interest in cryptocurrency and blockchain technology from the rest of the world grew the most during this time. It was also a time when the cryptocurrency community was in dilemma over the future of its two biggest blockchains. The timing was right; high interest from the world outside, a hopeful and expectant cryptocurrency community and now a promising Tezos blockchain. A faster and cheaper smart contract platform and a governance model which will tame rampant forks. Match made in heaven! Of course! It was a time when throwing bitcoin and ethereum into new projects wasn’t an issue for the holders. Tezos and its founders stirred into the space at just the right time.

 

Fear of missing out.

 

Ethereum sold each ether token for about $0.4 during its ICO. By 2017, each of these tokens would worth over $250. This represents over 600x gains. Crazy, right? Investors predicted a repeat of such event and were in search of new projects with such potentials as ethereum. Tezos’ presented solutions to ethereum and bitcoin’s issues while building a blockchain that combines the utility of bitcoin and ethereum. An investor would estimate this project to worth just as much as ethereum and bitcoin put together; at least.

Just like ethereum’s ICO, each Tezzies was sold below $0.5 dollar. Investors not only envisioned a repeat, they expected something way better. Tezos looked as shinny as bitcoin and ethereum combined, and the ICO presented an opportunity to get some tezzies at $0.47 each; and yes, a 20% bonus if you throw your bitcoin or ethereum in before the first 400 bitcoin block. The rush was justifiable, I’d be afraid to miss out on this too.
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Media hype and propaganda.

 

‘A new blockchain better than bitcoin and ethereum combined’. Tezos was really up for the hype. The Breitman couples were also some shinny characters to lead such project. It was easy to make a compelling story about this project. It was easy to make a reader spend more minutes reading about Tezos, and what the future holds for it. The media jumped on it and Tezos’ ICO was well talked about. While Tezos is unarguably a great project, the rampant tales also contributed to its outrageous success.

Tezos’ unarguably had a ride with that ICO! A well deserved stuff, despite the controversies that followed this financial empowerment, the developers have continued to deliver great products to the general crypto space. Tezos realized most of its ICO proposals, despite being valued way below ethereum or bitcoin, it hasn’t failed to deliver strong technologies.

Impressed about Tezos?

Tezos (XTZ)Spot trading is live on Bityard, earn 258USDT when you register

 

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Dzoelx
Dzoelx

Drinking coffee and writing about cryptocurrency. Follow me on medium: https://cryptoscripts.medium.com/


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