The Swiss-based cryptocurrency project, the Tezos Foundation, is launching its MainNet.
The Mainnet Release
The Tezos network will complete its beta period after which the protocol will become a full MainNet.
Tezos introduced the beta network in June. It called the move an “inflection point” for this project. Users could validate the blocks from that point on and perform “baking” after the first seven cycles.
Tezos wanted to build a network, and subsequently issue a new type of cryptocurrency altogether. They launched an ICO (Initial Coin Offering) in July last year. The company raised nearly 66,000 Bitcoins (BTC) and 361,000 Ethereums (ETH). These were worth approximately $232 million at that time.
However, the company called the funds “a non-refundable donation” and not a “speculative investment,”. Furthermore, indications were that they might not issue the token at all.
Tezos and Regulation
A dispute arose between the co-founders of the Tezos project, Arthur and Kathleen Breitman and, Johann Gevers, who was controlling the funds upon the completion of the ICO.
Rumors are that this dispute led to an indefinite delay in the platform launch.
Furthermore, the platform was criticized and several lawsuits arose over its compliance with the U.S. SEC (Securities and Exchange Commission) post ICO completion.
U.S. law describe the tokens as actual securities. This means that they have to be registered with the SEC in order to legally sell them to investors.
Moreover, the foundation implemented Know Your Customer/Anti-Money Laundering (KYS/AML) checks in June. The platform initiated these checks for the contributors, particularly those looking to participate in ICOs.
However, the community responded negatively to this move.
Tezos (XTZ) is currently trading at around $1.54, and is up over 15 percent at the time of going to press. Its market capitalization stands at about $933 million.
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