What is Tezos ICO in a Nutshell

Boxmining avatar Boxmining
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Description

Tezos is a new cryptocurrency with two core features - a self-governance system and the ability to form start contracts. It's got the features of Ethereum whilst also providing its own twist like a ne...

AI Analysis

Tezos is launching a full-on new cryptocurrency platform, not just another token sale, aiming to combine the self-governance model of Dash with the smart contract capabilities of Ethereum. Its Initial Coin Offering (ICO) is set to run for 20 days with no cap on the funds raised, which will be used to develop this ambitious project. While it offers unique features like its own smart contract language, it faces significant competition from established players like Ethereum and other emerging platforms, leading to an uncertain outlook for both short-term gains and long-term success.

Here's a closer look at Tezos and its ICO:

* What is Tezos?
* Tezos isn't just a new token; it's a complete new cryptocurrency and platform, positioning itself as a direct competitor and potential improvement over existing solutions.
* It's built as a "Self-Amending Cryptographic Ledger," which means it has its own built-in governance system, similar to a Decentralized Autonomous Organization (DAO). If you hold Tezos, you get to vote on the project's future direction, including adopting new features or funding community projects.
* Tezos combines the self-governance aspect seen in Dash (where masternode owners vote on proposals) with the smart contract functionality of Ethereum. This hybrid model is a key differentiator.
* It features its own unique smart contract language called Michelson, aiming to offer a different approach compared to Ethereum's Solidity.
* The long-term vision for Tezos is to become a leading platform for decentralized applications (dApps), much like Ethereum has, eventually incorporating advanced features such as Proof of Stake.

* The Tezos ICO Structure
* The ICO is a fundraiser where you can contribute using either Bitcoin or Ethereum. Unlike many token sales, you won't receive tokens immediately.
* The sale will last for 20 days and, notably, will have no cap on the amount of funds that can be raised.
* Once the fundraising period ends, the "Genesis block" (the very first block of the Tezos blockchain) will be mined, and the new Tezos coins will be distributed to contributors.
* The funds collected are earmarked for various purposes, including future research and development, legal services, and general business development, indicating a desire to run like a fully-fledged organization.

* Competition and Tezos's Edge
* Tezos faces immense competition, primarily from Ethereum, which boasts a multi-billion dollar market cap, extensive developer support, and years of experience.
* Other significant competitors in the smart contract space include Qtum, Neo (formerly AntShares), and EOS. Many projects are leveraging open-source Ethereum code or building their own smart contract platforms, creating a crowded market.
* A major concern is Tezos's reliance on a new programming language, Michelson. While it claims advantages over Solidity, it's questioned whether developers will flock to learn a new language when alternatives like Neo support widely known languages such as .NET. The general preference among engineers is for stable, well-understood languages.
* Despite this, a new language could potentially carve out a niche if it offers distinct technical advantages or caters to specific needs not met by existing languages.

* Investment Outlook (Short-Term vs. Long-Term)
* Short-Term: Investing in Tezos for a quick profit is likely to be very difficult. The lack of a cap and the extended 20-day fundraising period mean that anyone who wants to buy Tezos during the ICO can do so. This eliminates the scarcity that typically drives up the price of coins immediately after a capped, quickly-sold-out ICO (like the Basic Attention Token, which tripled in value post-ICO). Without scarcity, there's less pent-up demand to push the price up on initial exchange listings. Bancor, which also had an uncapped sale, saw minimal premium after hitting the open market.
* Long-Term: Tezos is presented as more of a long-term investment. As a new coin and a full platform, it possesses inherent value and offers something genuinely different from just a tokenized app. The new language and unique hybrid model might allow it to find a specific niche in the future.
* However, there's still skepticism even for the long term due to the intense competition in the smart contract space. The amount of money raised could also be a factor; if Tezos raises an "astronomical" amount like $100-$200 million, the future outlook could become "sketchy."
* It's crucial for potential investors to conduct thorough personal research, reviewing the white paper, website, and the team behind the project, rather than blindly investing based on fear of missing out, especially given the current "ICO fatigue" in the market.

Transcript

Hey everyone, my name is Michael and I'm going to cover the Tezos ICO. I'm going to cover aspects of what is the Tezos ICO, its main core goals and objectives, what it's competing against, its competitors, and also lastly what I think about this ICO, if it's worth investing or not. Of course, I'm not a professional financial advisor, so this is my own opinion and this is not financial advice. So let's first start off with the Tezos ICO. What is Tezos? So I've been talking a lot about these init...